reduced no fault

Motorcycle Insurance: Reduced No Fault

If you’ve been to our office to get your bike plated, you may have been asked by one of our employees if you want to opt into Reduced No Fault motorcycle insurance. If you decline, the transaction proceeds as usual. However, if you accept, you’ll be required to review some documents and sign paperwork – but it’s well worth it to save you on the cost of your insurance. Reduced No-Fault motorcycle insurance provides injury benefits while operating your motorcycle. However, this option provides different coverage limits than the standard No Fault injury benefits automatically provided to Saskatchewan residents. As its name suggests, Reduced No Fault offers reduced coverage compared to the regular plan.

What is the Standard No-Fault Coverage?

No-Fault Coverage is the way to go if you want motorcycle insurance. It offers comprehensive benefits coverage through your registration that will cover most of your expenses if you’re injured in a collision, regardless of who is responsible for the accident.

With No-Fault Coverage, you’ll receive assistance with rehabilitation, medical bills, personal and travel expenses, living assistance payments, permanent impairment payment, and death benefits. Medical professionals will collaborate with your doctor or practitioner to create a rehabilitation plan tailored to your needs. This plan aims to help you recover from your injuries quickly and fully.

Reduced No-Fault Benefits

Reduced No Fault is an injury benefits package that you have the option of opting into while you’re operating your motorcycle. This coverage includes a basic package of injury benefits if you are responsible for the collision, even in single-vehicle collisions. Whether you experience an accident while riding your motorcycle in Canada or the United States, Reduced No Fault injury coverage will provide protection; however, the coverage amount is reduced from the standard. However, if the collision is not your fault, you can receive full No-Fault injury benefits to aid recovery.

You’re probably wondering, “Why would I opt into reduced benefits?” Good question. When rates for motorcycle plates spiked in 2016, SGI developed this option to give you a way to reduce your rate increase. SGI gives motorcycle owners this reduced option so that they get lowered plate costs if they are okay with receiving decreasing benefits. The discounts for opting into Reduced No Fault vary depending on the cc’s of your bike. The value can be anywhere from 5% for a smaller engine to 30% for a larger one.

Coverage Comparison

Before you rush to save a couple of dollars on your plates, you must understand precisely what it is you’ll be giving up. below is a short summary of a few of the injury coverage differences. To see a complete list visit SGI’s Motorcycle Injury Insurance page.



Reduced No-Fault

Income Benefits for Total Disability – Employed
90% of net income, max gross salary of $108,253 annually $458/week up to two years
Medical & Rehabilitation Coverage
$7,819,241 max $213,090 max – Catastrophic injury

$28,412 max – non-catastrophic injuries

Permanent Impairment Payment – catastrophic injury
$279,673 max $184,678 max

This is just a quick snapshot of how much your benefits will reduce if you opt into the Reduced No-Fault coverage. If this option is something that interests you, please make sure to review the Guide to Reduced No Fault Injury Coverage. Another option to save during the winter months is to insure your motorcycle on an insurance policy so you can still insure your bike without paying for the plate registration cost.

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