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In SK, what should I know about insurance requirements for car loans?
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Car Loan Glossary • province

In SK, what should I know about insurance requirements for car loans?

In Saskatchewan, when securing a car loan, lenders will invariably require more than just the mandatory basic plate insurance provided by SGI. While SGI's basic coverage includes minimum liability and some personal injury benefits, it does not adequately protect the financed asset itself. Therefore, you will be required to carry additional comprehensive and collision coverage, often referred to as 'full coverage,' to protect against damages from accidents, theft, vandalism, and other non-collision incidents. This is a standard requirement across Canada for financed vehicles, as it safeguards the lender's investment in the vehicle until the loan is fully repaid. For you, the consumer, this coverage is crucial because it prevents you from being liable for the full outstanding loan amount if the vehicle is damaged beyond repair or stolen, especially with current market conditions in 2025 seeing higher vehicle values and repair costs. Failing to maintain the required insurance coverage can lead to a default on your loan agreement, potentially resulting in repossession of the vehicle and damage to your credit rating.

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