Roughly half of Saskatchewan drivers are underinsured, carrying only the minimum $200,000 in third-party liability coverage that comes standard with basic licence plates, according to a new report released today by the Insurance Brokers Association of Saskatchewan (IBAS).
The report, compiled by a 16-member advisory committee, warns this limit is generally insufficient, and outlines six recommendations to better protect consumers. Comparatively, next door in Manitoba, more than nine in 10 drivers have liability coverage of at least $1 million.
“Saskatchewan’s public auto insurance system is unlike any in the country, and it is one of the most stable and affordable,” explains IBAS CEO Derek Lothian. “But the fact remains many drivers in the province don’t understand basic insurance is not enough to properly protect themselves from all accidents — especially those caused by them and their vehicles.”
Failure to carry sufficient liability coverage could leave drivers on the hook to provide out-of-pocket compensation for property damage, injury or death to another person, or a victim’s loss or lost potential of income. IBAS strongly suggests drivers seek advice from a licensed broker and consider purchasing increased liability limits through extended auto insurance — also known as package policies.
“The percentage of Saskatchewan drivers with only $200,000 in liability coverage is inadequate, represents a significant consumer and public safety risk, and must be addressed,” says Lothian. “Drivers, industry, and government — we all have a role to play in bridging the gap while promoting competition and affordability in the marketplace, enhanced choice and education for consumers, and the independent advice that is available only through the broker channel.”
Click here to read the full report.