January, 2001

Changes to licence plate insurance coverage

Beginning Jan. 1, 2001, a few changes regarding vehicle insurance coverage will affect Saskatchewan drivers. The changes, which involve the transfer of licence plates to a newly acquired vehicle and insurance coverage for after-market electronic equipment–including stereos and radar detectors, will simplify procedures and result in fairer auto insurance rates for vehicle owners.

The first change will provide insurance coverage for seven days to an owner who has sold a vehicle and acquired another vehicle to replace it. This means SGI does not require a transfer application for seven days provided the valid licence plate from the sold vehicle is displayed on the newly acquired vehicle. This change takes effect January 1, 2001.

"Saskatchewan now joins all other western provinces in providing an insurance and registration grace period on newly acquired vehicles," explains Penny McCune, Manager of Auto Fund Underwriting. "This change will also simplify the process of transferring licence plates after a new vehicle is purchased and help alleviate confusion for our customers caused by our old system."

Secondly, in order to help curb Auto Fund losses on electronic audio and visual equipment installed after a vehicle's purchase, SGI will be introducing a $1,500 limit on coverage after deductible. Equipment which will fall under the limit–most commonly stereos–includes any electronic device that is not originally installed by the manufacturer or wasn't available from the manufacturer for a particular make and model at the time of production of the vehicle. The change in coverage comes into effect when vehicle owners renew their licence plates in 2001.

"The Auto Fund was established to provide basic insurance coverage for the people of Saskatchewan, not coverage for high-end electronic equipment," McCune said. "Insurance coverage in excess of the $1,500 limit may already be included in customer's package policies or it can be purchased from any insurer selling auto extension coverage."

The last change, which takes effect on renewal in 2001, relates to insurance coverage for radar detectors. Radar detectors will no longer be covered by the auto insurance included with licence plates. "As SGI is one of the main advocates of traffic safety in Saskatchewan, we do not feel it is appropriate to provide insurance coverage for a device that encourages speeding," McCune added.

For more information, contact:
Penny McCune
Manager, Underwriting Services
SGI
Regina
(306) 751-3329

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