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July, 1999
SGI implements changes to snowmobile
insurance coverage
When it comes time to insure your snowmobile with SGI this year — you’ll notice a change. Effective Aug. 1, 1999, the Auto Fund will provide only liability coverage with a snowmobile licence plate. Vehicle damage insurance and personal injury coverage will be removed.
"The change is necessary to deal with high losses on snowmobiles in recent years," said Alan Cockman, Vice President, SGI Auto Fund. "The Auto Fund has been paying close to $3 in claims for every dollar of premiums taken in. Basically, other motorists have been subsidizing the snowmobile class. The move to liability-only coverage will enhance fairness in the Auto Fund."
Snowmobiles are the only off-road vehicles registered with the Auto Fund. Rather than remove snowmobiles from the vehicle registration system, SGI decided to continue registering them while providing liability-only coverage, which will remain at $200,000. Consultations with groups like the Saskatchewan Snowmobile Association showed the need to continue providing this coverage because of the extensive use of provincial trails by snowmobilers.
The insurance premium for liability-only coverage will be $95 annually for a snowmobile with an engine capacity of 450 cc or less, and $131 annually for a machine over 450 cc. Current snowmobile premiums range from $95 to $522 for all licence plate insurance coverages. The registration fee will remain at $9 per year.
"The change was initially announced in May 1998, giving snowmobile owners a full year to make alternate arrangements for the damage and personal injury coverage that will no longer be provided by the Auto Fund," Cockman said. "By making the change during the off-season, we’re hoping to limit the impact on snowmobile registrants."
Snowmobile owners should not assume the coverage change means other insurance isn’t necessary. Physical damage and additional liability coverage will still be available from other insurance companies, including SGI CANADA. Personal injury coverage will be available from life insurers.
Snowmobile owners wanting more information can contact their SGI motor licence issuer or call the Auto Fund call centre at 1-800-667-9868.
For more information, contact:
Penny McCune
Manager, Underwriting Services
SGI
Regina
(306) 751-3329
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