SGI Trailer Registration: Declared Values FAQs Answered
Trailer owners face substantial financial risks when declaring values too low on their SGI trailer insurance coverage. The gap between declared value and actual replacement cost could mean thousands of dollars lost during a claim.
The insurance company pays only the lesser amount between your trailer’s actual cash value and its declared value when it faces total loss. Many trailer owners set their declared value too low without realizing it, which creates much financial risk.
The right declared value will provide solid protection when you need it most. This applies whether you register a new trailer or renew existing coverage.
Understanding SGI Trailer Registration Basics
License Requirements for Safe Towing
Your driver’s license class matters when towing trailers. Class 5 licenses cover two-axle vehicle combinations up to 4,600 kg total weight. Heavier combinations require a Class 1 license.
Drivers must hold a heavy trailer G endorsement or a Class 1 driver’s licence when towing trailers or vehicles where the combined gross weight of the trailer and its contents exceeds 4,600 kg (10,000 lb).
Documentation and Registration Process
Most registration delays are caused by missing or incorrect paperwork. For example, when buying a boat and trailer, separate bills of sale for each prevent registration complications.
Declared Values: What They Mean for Your Coverage
Trailer owners often discover the true meaning of declared values after a loss occurs. SGI trailer insurance coverage hinges on owner-declared values. Saskatchewan trailer registration requires stating your trailer’s value upfront when buying/renewing a plate.
Higher declared values mean higher registration costs. Amy Moon, a licensed insurance broker at Harvard Western, explains:
Many owners focus on minimizing registration fees without considering the protection they’re giving up.
How SGI Calculates Claim Payments
If the trailer suffers a total loss, the amount payable to the insured is the lesser value of:
- actual cash value (ACV) or;
- declared value
This calculation determines your maximum possible payout.
Setting the Right Value
Round up to the nearest thousand when declaring your registration value. And remember, the purchase price is just the starting point. Declare the full replacement cost, including taxes, for comprehensive coverage.
Financial Risks of Under-declaring
Low declared values create dangerous coverage gaps. Consider this scenario: A $15,000 trailer declared at $10,000 faces a total loss. The owner loses $5,000 even if the trailer’s market value remains $15,000.
“We see this mistake far too often,” notes Mark Marcial, a Harvard Western advisor since 2017. “Saving a few dollars on registration can cost thousands in a claim.”
Keeping Values Current
Market values are in constant motion. And with each registration renewal, you have a critical window: update your declared value to reflect today’s replacement costs. Regular reviews keep your coverage in sync with reality. But neglect this, and you could face a devastating shortfall, precisely when you depend on your protection most.
How to Calculate Trailer Fees
To determine the expenses associated with registering and insuring your trailer, you can use the following guidelines:
- Identify your trailer’s class (F, LT, T, or TS).
- Specify the type of trailer (utility, transport, tent, semi, etc.).
- Locate the relevant registration cost.
- Refer to the insurance cost in the provided tables (based on the trailer type, value, or both).
- If you are leasing out your Class T trailer (U-Drive), increase the insurance premium by 30%.
- Compute the PST on the insurance premium total.
- Combine the registration fee, insurance premium, rental fee (if applicable), and PST to determine the total cost of registration and insurance for your trailer.
The amount you pay is based on the value you set and the type of trailer. The owner of certain types of trailers must declare the unit’s value. The declaration affects both coverage and premium amounts.
Plate Fee Calculation Tables
Private Trailers (Class T)
The cost to register all private trailers amounts to $28. The declared value and category of the trailer impact your insurance cost, as detailed in the following section:
| Trailer Value2 | Utility | Tent | Semi | Transport |
| 1,000 & under | $36 | $78 | $64 | $64 |
| $1,001 – $3,000 | $36 | $101 | $79 | $79 |
| $3,001 – $5,000 | $36 | $153 | $98 | $98 |
| $5,001 – $10,000 | $36 | $255 | $152 | $152 |
| $10,001 – $15,000 | $36 | $366 | $210 | $210 |
| $15,001 – $20,000 | $36 | $410 | $221 | $221 |
| $20,001 – $25,000 | $36 | $432 | $230 | $230 |
| $25,001 – $40,000 | $36 | $449 | $241 | $241 |
| $40,001 – $60,000 | $36 | $538 | $281 | $281 |
| $60,001 – $80,000 | $36 | $542 | $318 | $318 |
| $80,001 – $100,000 | $36 | $601 | $359 | $359 |
| $100,001 and greater | $36 | $648 | $388 | $388 |
| Trailer Value2 | Metal Cabin | Fibreglass/Other Cabin |
| 1,000 & under | $88 | $80 |
| $1,001 – $3,000 | $120 | $100 |
| $3,001 – $5,000 | $203 | $151 |
| $5,001 – $10,000 | $404 | $247 |
| $10,001 – $15,000 | $527 | $371 |
| $15,001 – $20,000 | $605 | $395 |
| $20,001 – $25,000 | $708 | $415 |
| $25,001 – $40,000 | $739 | $431 |
| $40,001 – $60,000 | $879 | $516 |
| $60,001 – $80,000 | $925 | $519 |
| $80,001 – $100,000 | $1,003 | $560 |
| $100,001 and greater | $1,089 | $621 |
Farm trailers (Class F)
Varieties of agricultural trailers, when towed by a farm-registered vehicle, encompass:
- semi
- transport
- utility trailer
The insurance cost for this registration is determined by the type of trailer:
| Trailer Type | Registration Fee | Premium Rate1 |
|---|---|---|
| Semi | $32 | $93 |
| Transport | $32 | $50 |
| Utility | $32 | $45 |
Commercial trailers (Class TS)
Commercial trailers, classified as Class TS, encompass various types, such as:
- semi
- transport
- utility trailers
Upon registration, a corresponding insurance premium is calculated based on the trailer’s value:
| Trailer Type | Registration Fee | Trailer Value | Premium Rate1 |
|---|---|---|---|
| Semi Transport Utility |
$32 | $2,000 and less | $49 |
| $32 | $2,001 – $5,000 | $92 | |
| $32 | $5,001 – $7,000 | $105 | |
| $32 | $7,001 – $10,000 | $123 | |
| $32 | $10,001 – $12,000 | $158 | |
| $32 | $12,001 – $15,000 | $210 |
*Remember: Your declared value affects both registration fees and potential claim payments. Lower declarations might reduce today’s costs but risk tomorrow’s coverage.
FAQs
How is the cost of trailer registration determined in Saskatchewan? The cost varies depending on the trailer’s class, type and declared value.
What does “declared value” mean for trailer insurance? The declared value is the value amount you state your trailer is worth when registering it.
How often should I review my trailer’s declared value? It’s recommended to review your trailer’s declared value annually, typically during registration renewal. This ensures your coverage aligns with current replacement costs, accounting for market changes, modifications, or depreciation. Regularly updating the declared value helps avoid potential coverage gaps in case of a claim.
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Posted in Auto on March 18, 2025 by Hope Prost
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