Auto Insurance: Basic Coverage vs Auto Pak Benefits
Did you know that more than half of licensed Saskatchewan residents don’t have additional coverage beyond their basic plate insurance? The $200,000 liability limit on your license plates was set back in 1985, and it is only worth about $88,000 in today’s dollars when adjusted for inflation.
Considering 90% of adults drive and Canadians experience an average of five accidents throughout their lifetime, car accidents are actually more common than house fires. In fact, they’re the leading cause of trauma and death for people under 45 years old.
What is Basic Plate Registration Coverage?
Basic Plate Registration Coverage is the minimum required insurance that comes with your Saskatchewan license plates. It provides a foundation of protection, but has significant limitations you should understand.
Q: What protection does Basic Plate Registration include?
A: Your basic license plate insurance includes:
- $700 deductible (the amount you pay before insurance kicks in)
- $200,000 in third-party liability coverage
- Settlement based on the actual cash value (depreciated value) of your vehicle
- No-fault coverage (unless you choose to opt out)
- Up to 90% of net income replacement to a maximum of $102,673 if you’re injured
- Death benefits of 45% of the deceased’s net income, plus 5% for each dependent under 21
- Education allowance of up to $49,928 for the training of a dependent spouse
- Funeral expense coverage of $10,887
Q: What’s NOT covered by Basic Plate Registration?
A: Basic plate insurance does NOT include:
- Family security protection (for accidents with uninsured drivers)
- Coverage for your unlicensed vehicle while in storage
- Damage to vehicles you don’t own (like rentals)
- Loss of use coverage (rental car costs while yours is being repaired)
- Replacement value for new vehicles
What is an SGI Auto Pak Policy?
An SGI Auto Pak is additional insurance coverage you can purchase to enhance your basic plate insurance protection. It fills important coverage gaps and provides greater financial security for Saskatchewan drivers.
Q: What additional protection does an Auto Pak provide?
A: An Auto Pak policy offers:
- Increased third-party liability limits from $1 million up to $5 million
- Family security coverage at no additional cost (protects you if hit by an uninsured driver)
- Coverage for damage to vehicles you don’t own (like rental cars)
- Protection for your unlicensed vehicle or trailer while in storage
- Options to lower your deductible (as low as $50)
- Lower Road Hazard Glass deductibles for windshield damage
- Replacement or Repair Cost coverage for new vehicles (up to 60 months from delivery)
- Loss-of-use coverage (pays for a rental while your car is being repaired)
Q: How does Auto Pak enhance accident benefits?
A: Auto Pak provides enhanced accident benefits:
- Covers an additional 10% of net income (for 100% coverage vs. 90% with basic)
- Increased death benefits (50% of the deceased’s net income plus additional amounts for dependents)
- Education allowance up to 50% above basic auto insurance
- Death benefit payments up to 50% above basic auto insurance
Q: Who should consider an Auto Pak policy?
A: You should consider an Auto Pak if you:
- Own a newer vehicle that would be expensive to replace
- Frequently rent vehicles
- Have significant assets to protect
- Drive in high-traffic areas or across provincial/international borders
- Want to minimize out-of-pocket expenses in case of an accident
How Much Does Auto Insurance Cost?
The cost of auto insurance varies based on several factors, including whether you have basic coverage only or add an Auto Pak policy.
Q: What factors affect my insurance rates?
A: Your auto insurance costs are influenced by:
- Your driving record and claims history
- Where do you live in Saskatchewan
- Your coverage options and limits
- Your deductible choices
- Whether you use your vehicle for business purposes
Q: Are there ways to lower my car insurance costs?
A: Yes, you can potentially lower your car insurance costs by:
- Maintaining a clean driving record
- Bundling multiple vehicles on one policy
- Choosing a higher deductible (if you can afford it in case of a claim)
- Reviewing your coverage annually to ensure it still meets your needs
Comparing Basic Coverage vs. Auto Pak Benefits
When deciding between basic coverage and adding an Auto Pak, it helps to see a direct comparison of benefits.
| Coverage Feature | Basic Plate Insurance | Auto Pak Policy |
|---|---|---|
| Deductible | $700 | As low as $50 (your choice) |
| Third Party Liability | $200,000 | Up to $5 million |
| Inconme Replacement | Up to 90% of net income | 100% of net income |
| Death Benefits | 45% of income plus 5% per dependent | 50% of income plus additional amounts for dependents |
| Family Security | × | ✓ |
| Damage to Non-owned Vehicles | × | ✓ |
| Unlicensed Vehicle Storage | × | Available to Add |
| Replacement Cost | × | Available (conditions apply) |
| Loss of Use (rental car) | × | Available to Add |
How to Estimate Your Car Insurance Needs
Determining the right amount of car insurance coverage requires evaluating your personal situation and risk factors.
Q: How do I know how much liability coverage I need?
A: To estimate your liability needs:
- Consider your assets that could be at risk in a lawsuit
- Think about where you drive (urban areas have higher accident risks)
- Factor in if you regularly drive across provincial borders
- Evaluate if you often have passengers in your vehicle
Most insurance professionals recommend at least $1-2 million in liability coverage for adequate protection in today’s environment.
Q: Should I choose a lower deductible?
A: When deciding on your deductible:
- Assess your emergency savings and ability to pay the deductible amount
- Calculate the premium difference between deductible options
- Consider your driving habits and accident likelihood
- Factor in the age and value of your vehicle
Q: Do I need replacement cost coverage?
A: Consider replacement cost coverage if:
- Your vehicle is less than 5 years old
- You have a loan or lease on your vehicle
- You couldn’t easily afford to replace your vehicle
- You want to avoid depreciation affecting your claim settlement
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1.
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2.
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Last updated:
Posted in Auto on February 25, 2022 by Hope Prost
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