SGI Applying For Rate Increase
Insuring your car could be getting a little bit more expensive if SGI’s application for a rate increase is approved.
In a news release SGI stated that there has been no rate increase since 2014 and due to increased repair costs the time has come for an increase.
Under the proposal SGI is putting in front of the Saskatchewan Rate Review Panel (SRRP) SGI is asking for a rate increase over two years.
In 2026 SGI is asking for 3.75 percent in June 2026 and 2027.
The reason for the rate increase is financial and the present system unsustainable.
"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,” Penny McCune, President and CEO of SGI said in a statement. The Saskatchewan Auto Fund operates on a break-even basis over time, but premiums haven't been enough to cover costs in recent years.”
SGi provided a statement that 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.
SGI had been using the Rate Stabilization Reserve to maintain rates but according to the release this is not a viable long term solution in the face of increased repair costs.
SGI also said they were still aiming to keep insurance rates as low as possible.
The release stated SGI is aware of the effects of inflation many people are feeling and they will keep the rate increases as low as possible.
If approved the 2026 rate increase breakdown is:
· 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 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.