Saskatchewan

Auto insurance in Saskatchewan is provided by a government-run insurance company, Saskatchewan Government Insurance (SGI). Since 1945, Saskatchewan consumers have had very little choice in how and where they buy their car insurance. If they are dissatisfied with the service provided by SGI or the premiums they are being charged, drivers in Saskatchewan do not have the same options as do drivers in other provinces – the option to switch insurance companies.

Everyone who wants to drive a car in Saskatchewan must, by law, buy a minimum amount of collision and comprehensive insurance (see ) and has the option to buy more to suit his or her needs. Saskatchewan drivers must purchase the compulsory minimum insurance from SGI. Government and private insurers compete for business selling optional (fire, theft, comprehensive) coverage.

A competitive business environment is a powerful incentive for insurers to deliver the best service and to understand and meet consumers’ needs. Auto insurance is no exception to this rule. As consumers’ needs change, private insurance companies respond by offering innovative new products and services. Product innovations such as first accident forgiveness, replacement cost coverage, roadside assistance, and payment plans were all adopted in competitive jurisdictions long before they were available in provinces with government-run auto insurance systems.

All provinces in Canada have some form of no-fault accident benefits that are paid to all accident victims. The difference across the provinces is the degree to which tort (the right to sue) or no-fault (access to accident benefits) is emphasized. Saskatchewan is a province, but residents have the option to have their auto insurance through a system. This choice has been available to Saskatchewan residents since January 1, 2003. Fewer than 5000 Saskatchewan residents, representing less than .05% of the population, have opted for the tort system.