SGI applies for first auto insurance rate hike in more than a decade
Saskatchewan Government Insurance has applied for its first auto insurance rate increase since 2014, proposing two annual increases of 3.75 per cent beginning in June 2026.
The Crown insurer has submitted a two-year rate proposal to the Saskatchewan Rate Review Panel, with increases planned for June 2026 and June 2027. The 2026 increase would take effect on an interim basis, pending the outcome of the public rate review process.
If approved, SGI says about 98 per cent of vehicles in Saskatchewan would see a rate increase in 2026, with an average annual increase of $38. About one per cent of vehicles would see an average annual decrease of $8, while the remaining vehicles would see no change.
SGI says the increases are needed to address rising claim costs driven by inflation and more advanced vehicle technology.
“Inflation and advanced technology in newer vehicles have caused a sharp rise in the cost of vehicle repairs, and the Auto Fund is no longer taking in enough revenue to cover the cost of claims,” said Penny McCune, SGI president and CEO.
According to SGI, the average cost of a vehicle damage claim has risen 25 per cent over the past five years, increasing from $4,880 per claim in 2019-20 to $6,101 in 2024-25.
SGI said the Auto Fund operates on a break-even basis over time, but premiums have not kept pace with rising costs in recent years. The insurer has relied on its Rate Stabilization Reserve to keep rates flat, but says that is not a long-term solution.
“SGI hasn’t had a general rate increase in over 10 years,” McCune said. “With the sharp jump in auto damage costs, it’s not possible to keep rates flat.”
The proposal includes rate rebalancing, which takes into account the number and cost of claims — including damage, injury and liability — for different classes of vehicles. As a result, rate changes would vary depending on the type of vehicle.
To reduce the impact on vehicle owners, SGI said rate increases would be capped. Motorcycles and urban taxis would be excluded from the first year of the rate program while SGI consults with those industries.
SGI noted Saskatchewan drivers currently pay among the lowest auto insurance rates in Canada and said that would remain the case even if the proposed increases are approved.
Public feedback on the proposal will be accepted by the Saskatchewan Rate Review Panel through its website, by phone or by email. Proposed rates for all vehicles are also available on SGI’s website.