We live in a province of government auto insurance. This is simple, yet complicated. Many people believe that when they purchase their driver’s license and registration from SGI that they are properly insured and completely covered. However, there are scenarios you need to be aware of that can put yourself at risk, if you do not carry an extension auto policy.

When you purchase your registration from SGI, you are accepting a $700 deductible on any type of physical loss to your vehicle, and $200,000 liability if you are found negligent while operating that vehicle. If you are comfortable absorbing $700 in the event of claim, that is completely fine, however, the liability amount is the main concern.

Most people think that we have “no fault” insurance coverage in Saskatchewan. While that may be true, there are certain scenarios where you can be still found at fault and on the hook for the damages. This includes actual property damage caused by the use of your vehicle. If you hit a building or another vehicle, those damages to the other vehicle/house are covered using your liability coverage. Now most losses are covered under 200,000 limit, however, there have been situations where people have derailed trains or have overturned semi trucks that were carrying harmful products causing damage to the environment. If you are found at fault, these physical losses are your responsibility and will come out of your liability limit. In both these scenarios, the losses amounted into the millions; which is horrific. With an extended liability policy you can purchase 2 million liability coverage for as little as $4 per month ($46 / year).

You can also be sued for additional income losses. Let me explain what that is. SGI has a cap on how much they can pay for annual income if someone is severely injured and can no longer work.  If you injure someone in a vehicle accident who is making more than the $94,587 cap. They can sue for the additional income that they were making prior to the loss. So if you hit a lawyer or doctor who makes 250k per year and they can no longer work. They can sue you for the additional 140k for the next 25 years (Or however long their career would have been for). This particular scenario ends up being $3.5 million. These types of claims can end up crippling a person or family for a very long time. Liability is by far the most beneficial product on the auto policy. Make sure you call our office and make sure you are properly protected as these are the claims that can cause huge financial problems.

Other products you can purchase on an auto pak are the following:.

• Wildlife Waiver of deductible – if you hit any type of wildlife your deductible is waived.
• Road Hazard Glass – If you buy a package policy you can add on this endorsement to cover stone chips or cracks to your windows.
• Replacement Cost Coverage – If you purchase a brand new vehicle, you can obtain replacement cost coverage on the vehicle for the first few years. If something terrible happens and the vehicle is written off, you will receive a brand new vehicle similar to the one you had prior to the loss.
• Loss of Use coverage – if you are in an accident and you need a rental vehicle to continue your day to day operation while your vehicle is being repaired, this coverage will pay for the costs to rent a vehicle. $1000 or $2000 limits are available. You can choose the limit that will work best for you.
• Family Security – This coverage is automatically added with the liability coverage. This covers your family if you are hit by an uninsured or impaired driver who has no insurance coverage.

There are many other benefits to purchasing a package policy. Such as – coverage will automatically extend to a personal vehicle of similar nature, that you do not own, but are currently operating (ie. rental car or borrowed vehicle). Higher liability limits when you travel outside Saskatchewan and become higher risk of a potential lawsuit if there is an accident.

We are a community minded business and all we want is to make sure our friends and relatives are properly covered, in the event something awful happens. We all know someone who has likely been involved in some kind of accident; and unfortunately, we cannot see into the future to prevent them. However, at least with this coverage you can have peace of mind knowing you’ll be taken care of if something terrible does end up happening.