SGI applies for two-year rate increase

Changes would take effect in June 2026 and 2027

SGI is applying for its first rate increase since 2014 and has submitted a two-year proposal to the Saskatchewan Rate Review Panel (SRRP).

The two-year proposal includes rate increases of 3.75% in June 2026 and 2027. The June 2026 increase will be implemented on an interim basis but will still be subject to the public rate review process.

One of SGI’s key operating philosophies is to keep rates as low as possible. 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%.

Rate increases would be capped to reduce the impact on vehicle owners. Motorcycles and urban taxis will be excluded from year one of the rate program while SGI consults with these groups to address industry-specific concerns.

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.

If SGI receives approval for the two increases with rate rebalancing, the 2026 rate change would mean:

· Rate increases for about 98% of Saskatchewan vehicles with an annual average increase of $38,

· Rate decreases for about 1% of Saskatchewan vehicles with an average annual reduction of $8 and,

· No rate change for the remaining vehicles.

Rate rebalancing considers the number of claims and average cost of claims, including damage, injury and liability costs, for each class of vehicle. This means each customer’s rate change would depend on the type of vehicle they own.

"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, President and CEO of SGI. “The Saskatchewan Auto Fund operates on a break-even basis over time, but premiums haven't been enough to cover costs in recent years.”

The average cost for vehicle damage claims has increased 25% from $4,880 per claim in 2019-20 to $6,101 per claim in 2024-25.

The Rate Stabilization Reserve has allowed SGI to keep rates stable as claim costs have risen, but that's not a long-term solution.

“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,” McCune said. “Recognizing the financial pressures Saskatchewan residents are also facing, SGI is proposing two modest increases over two years.”

Rate changes would take effect in June 2026 (interim) and 2027. Proposed rates for all vehicles can be found on SGI’s website at https://sgi.sk.ca/2026-rates.

The rate proposal will be available on the SRRP’s website at www.saskratereview.ca. Comments on the rate proposal can be provided to the SRRP through its website or Facebook account, by calling toll-free 1-877-368-7075 or emailing feedback@saskratereview.ca.