PST comes into effect for Sask. insurance premiums

Saskatchewan residents are now paying more for their insurance.

Provincial Sales Tax (PST) is now being applied to insurance premiums as of Aug. 1, adding a six per cent charge to everyone’s bill.

The move, laid out in the 2017 provincial budget, is estimated to bring in $230 million annually according to the province.

But concerned financial experts say it will drive people to cut policies to make up the cost.

Drew Byers of Butler Byers Insurance Ltd told 650 CKOM there are other options to consider first, including a change to deductibles.

“You might have a $500 deductible on your home, but if you increase that to $1,000 that could certainly offset part of the cost,” he said

Byers recommends meeting with an insurance broker to go over your policies to find savings before you decide to get rid of policies.

The PST on premiums isn’t the only new budget measure causing concern for Byers.

He said because sales tax was added to labour costs it makes replacing things more expensive.

“There was not PST on the labour for reconstruction and now there will be so those are all costs added for insurance,” Byers said.

—With files from 650 CKOM’s Chris Vandenbreekel.