In March 2018, the IBAS board of directors approved the creation of a special Extended Auto Advisory Committee, mandated to provide recommendations that inform and guide the association’s positions and activities related to the future of both personal and commercial extended auto insurance in Saskatchewan.
- Barb Gottselig, Vice President, Personal Insurance, Harvard Western Insurance
- Chalen Schneider, Vice President, Commercial Insurance, Knight Archer Insurance
- Darren Grimes, Saskatchewan Area Manager, Andrew Agencies
- Doug Trapp, Vice President, Saskatchewan, HUB International
- Jason Farrell, President & CEO, Farrell Agencies
- Jaycee Turtle, Branch Manager, Lakeview Insurance
- Jennifer Konopelski, Officer Supervisor & Broker, Meota Agencies
- Judy McCuskee, Principal, McCuskee Consulting Ltd.
- Kelly Richards, Broker, Saskatoon Insurance Agencies
- Kristi Hofer, Account Manager, Butler Byers Insurance
- Levi Smith, Account Manager, Dickson Agencies
- Lori Madsen, Director, Insurance Services, CAA Saskatchewan
- Morgan Kolababa, Broker & CSR, Hoffmann Kool Insurance
- Rick Smith, Senior Vice President, Henderson Insurance
- Rose Freeman, Owner, Willow Insurance Corp.
- Stephen Barlow, Vice President, Dusyk & Barlow Insurance Brokers
- Cindy Anweiler, Associate Vice President, Marketing, Saskatchewan Mutual Insurance (Advisor)
- Garth Driedger, Leadership Team – Analytics, MyMutual Insurance (Advisor)
- Lana Jordan, Senior Director, Broker Strategy, SGI CANADA (Advisor)
The way Saskatchewan drivers insure themselves and their vehicles is significantly different from many other Canadian jurisdictions.
When registering a vehicle in the province through the government-administered SGI Auto Fund, drivers receive a basic package of insurance that is included with their licence plates. This insurance consists of:
- Third-party liability insurance of up to $200,000 for damage caused by the driver to another property or person;
- Coverage for damage to the driver’s vehicle, subject to a deductible of $700; and
- Personal injury insurance, should the driver become injured due to a collision.
What many Saskatchewan drivers do not understand, however, is that this basic insurance is not enough to properly protect them from all accidents — especially those caused by themselves and their vehicles. That could leave them liable for out-of-pocket expenses to cover damage to property, physical injury or death to another person, or a victim’s loss or lost potential of income.
To mitigate this risk, drivers may choose to purchase extended auto insurance — also known as package policies. These complementary policies have a range of coverage options, such as additional liability insurance of up to $5 million, and family protection in the event of an accident where the at-fault driver does not have sufficient liability insurance.
Unfortunately, half of Saskatchewan drivers still only carry the $200,000 minimum liability coverage associated with basic plates. In British Columbia and Manitoba, meanwhile, two other provinces with public auto insurance frameworks, more than 90 per cent of drivers have liability protection of $1 million or greater.
The following statement was unanimously adopted by the Committee, and was then approved as the official IBAS policy position at the June 18 Board meeting:
The percentage of Saskatchewan drivers compared to other Canadian provinces with only $200,000 liability coverage is inadequate, represents a significant consumer and public risk, and must be addressed.
To frame discussion and establish criteria by which it should consider recommendations, the Committee unanimously agreed that IBAS endeavour to increase the uptake of Saskatchewan drivers with third-party liability coverage greater than $200,000 only when its actions and policy positions align with all three of the following guiding principles:
- Competition and affordability in the marketplace;
- Options and education for the consumer; and
- Protection of the broker channel.