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For the first time since 2014, SGI is applying to increase its rates.
The Crown insurance provider is applying to the Saskatchewan Rate Review Panel to raise rates by 3.75 per cent in 2026, followed by another 3.75 per cent hike the following year. The first increase will be implemented on an interim basis starting in June, SGI noted, but will still be subject to the review process.
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“SGI hasn’t had a general rate increase in over 10 years. With the sharp jump in auto damage costs, it’s not possible to keep rates flat,” Penny McCune, SGI’s president and CEO, said in a statement.
“Recognizing the financial pressures Saskatchewan residents are also facing, SGI is proposing two modest increases over two years.”
The changes for 2026 will result in the average vehicle owner paying about $38 more for the year, SGI said, while others may see a small reduction. The proposed rates for all vehicle types can be found on the Crown corporation’s website.
The rate increases would be capped to minimize the impact on vehicle owners, SGI noted, adding that motorcycles and urban taxis would be excluded from the first year of the increase while the company consults with those groups in order to address “industry-specific concerns.”
The insurer noted that keeping rates low is one of its core philosophies.
“Over the last 20 years, the Saskatchewan Consumer Price Index has increased by 57.7%, while the Auto Fund’s rates, including capital amounts, increased by only 5.0%,” SGI said in a statement.
“Saskatchewan drivers benefit from some of the lowest auto insurance rates in Canada, and this would continue to hold true even with the proposed rate increases. SGI is committed to maintaining this value for Saskatchewan drivers into the future.”
The insurance company said the decision was made with consideration given to the average cost of claims. The average claim has risen from $4,880 in 2019-20 up to $6,101 in 2024-25, SGI noted. While the company’s Rate Stabilization Reserve has allowed it to keep rates steady even as costs went up, SGI said relying on the reserve is not a viable solution over the long term.
“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,” McCune added.
“The Saskatchewan Auto Fund operates on a break-even basis over time, but premiums haven’t been enough to cover costs in recent years.”
