SGI will be moving forward with the approved Auto Fund rate increase by the Saskatchewan Rate Review Panel for the first time in more then a decade.

The panel approved a 3.75 per cent increase that will come into effect on June 1, 2027. The SRRP had recommended an immediate 6.5 per cent increase on all vehicle classes, but the government directed SGI to go with the rate initially proposed for the 2027 date. The 3.75 per cent increase that went into effect on June 1 this year was also approved.

The Auto Fund saw record claims this summer, as well as more financial pressures from rising claims costs and inflation. The panel reported that there was a need for action to support the long-term sustainability of the Auto Fund.

Minister Responsible for SGI Jeremy Harrison says the panel’s recommendation recognizes the financial pressure on the Auto Fund’s sustainability.

“Our government’s response balances those financial realities with our commitment to affordability for Saskatchewan drivers.”

The average annual increase for Saskatchewan vehicle owners in 2027 is expected to be about $39. Auto Fund rates are based on a rate-setting approach, which means increases are based on the anticipated claim costs for each make, model and year of vehicle. Following the 2027 rate increase, Saskatchewan will still have among the lowest basic auto insurance rates in Canada.

Shadow Minister for SGI Darcy Warrington pointed out that the Rate Review Panel has presented ideas that don’t include rate increases for drivers.

“We know the people of Saskatchewan can’t afford another 40, 60, 80, $100 a year. They can’t afford an extra $3 a month. This all adds up.”

Warrington says it’s difficult to double check the government’s numbers and find solutions that don’t include rate hikes because all of the information is not available.