All of Canada's provinces have rules and regulations in place that resident drivers must follow. These include requirements for drivers to register their vehicles legally and to pay the appropriate fees. However, when you register your car, you won't just receive license plates — you'll also receive insurance coverage. Saskatchewan's Government Insurance (SGI) offers drivers a convenient way to insure their cars, but this policy does have limits and deductibles attached. It might also not be the only coverage you need. Here's where you can expect your SGI policy to pay, and where you might need extra coverage.
SGI's Required Insurance
Upon registering your vehicle, you receive your tags, which automatically have a government-provided insurance policy attached. Policies will include:
Physical damage insurance for damage to the vehicle.
Liability insurance for damage you cause other people, vehicles or properties while driving.
Injury insurance to cover your medical costs following a wreck.
Each component of your policy will include various rules on when it will and won't pay for your damage costs. These will include deductibles and maximum limits that the policy will pay on your behalf.
A deductible is a cost that will be subtracted from the total cost of a claim. The insurance policy will then only pay the cost your damage minus that deductible.
Under the SGI policy, standard passenger cars are classified as Class LV, and have a deductible attached of $700. Therefore, if your car sustains damage less than $700, your policy won't pay. However, if you have more than $700 in damage, then the policy will pay that amount minus the $700. So, if you have $800 in damage, then the policy will pay $100, as $800 - $700 = $100.
If you feel that you will have trouble paying the deductible portion of your claim, you can set up a payment plan that allows you to pay this amount off over a period of 10 months.
Other Limits On Your Policy
Your policy also limits how much it will pay you, at most, for damage to your car. In the event that your vehicle is a total loss, the insurer will only pay you for the vehicle's market value at the time of the accident. That's not the value of a new car, but rather the car's depreciated value.
Keep in mind, if you feel that you want more coverage than what is provided by the SGI policy, you can still purchase a policy extension by calling your insurance agent. Here at Heritage Insurance, we can issue policies that seamlessly work in conjunction with your government coverage. You'll be able to get ample protection, whenever you need it.