The test will be performed by SGI, which makes it among the first in the world to use telematics on these vehicles.
SGI (Saskatchewan Government Insurance) has announced its proposal to begin a program that will apply usage based insurance technology to policies that cover motorcycles, joining the very first in the world to take this step.
Only a small handful of other companies across the globe have intentions to test telematics for motorcycles.
Usage based insurance technology functions by installing a small device into a vehicle in order to record certain types of information associated with driving behaviors – such as mileage, hard braking, speed, and driving times – and transmits it to the insurer in order to help to determine the risk associated with the use of a specific vehicle. Safe drivers can experience reductions in their premiums when they prove their cautious behaviors.
Usage based insurance telematics have been applied mainly to cars, pickups, vans, SUVs, and even commercial trucks.
These programs are new and have started installing the usage based insurance devices into those types of vehicles, but have not yet been used for motorcycles, for the most part. This is among the first times that the technology is being applied for this reason in the world, but it is certainly a first among Canadian insurers.
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According to the Donna Harpauer, the Minister Responsible for SGI, “This is a truly innovative approach to addressing the issues that have been raised by motorcycle owners regarding their insurance rates and traffic safety.” She went on to add that “Usage based insurance is the ultimate in rating fairness because it essentially lets the driver control their own insurance rate through their driving behavior. Simply put, those who drive responsibly pay less and those who don’t pay more.”
The Motorcycle Review Committee has expressed that it is in support of this pilot program for usage based insurance on the vehicles. This group of concerned stakeholders comes together to discuss issues that have to do with motorcycle coverage and felt that this was an opportunity worth investigating.
Should SGI move forward with the usage based insurance test program, it will seek out several hundred motorcycle riders in Saskatchewan to volunteer to have the devices installed on their vehicles.