April 25, 2002

Rewarding Safe Drivers

Saskatchewan motorists will soon be rewarded for their safe driving habits with the introduction of Safe Driver Recognition.

During the first 12 months of this program, SGI estimates $16 million will be put back into the pockets of Saskatchewan vehicle owners.

The program is designed to reward safe drivers with a discount on their vehicle insurance, while ensuring drivers who display risky behaviour pay their share of fines. SGI plans to implement Safe Driver Recognition July 1st once the Automobile Accident Insurance Act is amended.

Motorists who own or lease a vehicle with private and farm class plates will be eligible for a discount. That accounts for about 72 per cent of all vehicles in the province.

"The large majority of Saskatchewan motorists are safe drivers," Crown Investments Corporation Minister Maynard Sonntag said. "Under Safe Driver Recognition, two out of three Saskatchewan vehicle owners will receive a discount on their vehicle insurance. That's about 350,000 people in Saskatchewan."

At the start of the program, all Saskatchewan motorists will be placed on the Safety Rating Scale based on their driving record since 1995. Safe drivers with a positive rating will get a break on their vehicle insurance - to a maximum of seven per cent. SGI's records show 55 per cent of eligible Saskatchewan vehicle owners will receive a discount on their plate insurance of five per cent or more.

Drivers who start the program with a negative safety rating will not be eligible to receive a discount, but they will also not be charged any new fines for incidents that occurred before the program launch. Drivers will begin to pay new fines once the program is in place. This will help offset the cost of discounts for safe drivers.

Certain incidents will cost drivers points on the Safety Rating Scale — such as at-fault accidents, specified traffic convictions and traffic-related Criminal Code convictions, like impaired driving.

The more incidents a motorist has, the more demerit points they'll receive and the higher fines they'll pay. These fines will take the place of current driver's licence surcharges and will be assessed immediately following an incident.

The Safety Rating Scale will make the rating and penalty system simpler to understand, allowing motorists to see for themselves how their driving habits affect their auto insurance costs in a more timely manner.

"For a number of years, SGI customers have been asking for a discount on vehicle insurance, and we're happy to be in a financial position to allow us to provide those discounts now," Sonntag said. "The Saskatchewan Auto Fund eliminated its deficit at the start of this year. This new financial stability means we can introduce this program without a rate increase in 2002. It ensures Saskatchewan motorists will continue to have among the lowest auto insurance rates in Canada."

For more information about Safe Driver Recognition, please visit SGI's website at www.sgi.sk.ca.

For media inquiries only, contact:
Julianne Jack
SGI Communications
Regina
(306) 775-6907

For all other inquiries, call 1-800-667-8015.

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