Saskatchewan Government Insurance (SGI) is moving forward with a 3.75 per cent overall Auto Fund rate hike in 2027, despite a recommendation from the province’s rate review panel to not move forward with the increase over concerns about affordability.
At a news conference Friday, Jeremy Harrison, the minister responsible for SGI, told reporters that despite the recommendation to not move forward with the proposed 2027 rate bump, the Saskatchewan government is approving it with rate rebalancing.
“(This has) really been driven by the increased cost per incident per vehicle repair. (It has) nearly gone up by 50 per cent per vehicle cost over the last six years,” Harrison said.
He estimated repair costs have climbed by $3,000 this year compared to 2020. Technology such as cameras and sensors in modern cars was said to be a large factor in that rise.
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“We are focused on that balance between sustainability and affordability. We think the two-year 3.75 per cent rate program is an appropriate reflection of that balance,” the minister said, adding that “we are not contemplating additional rate increases right now.”
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The second round of increases will come into effect on June 1, 2027, according to a Saskatchewan government news release. The first round hit earlier this summer.
After June 2027, the average vehicle owner in Saskatchewan will pay approximately $39 extra annually, around $3 per month, compared to their 2026 rate, the province said.
The rate increase will not apply equally across all vehicle classes. Instead, it will be determined based on the anticipated claim costs of each vehicle class.
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SGI President and CEO Kent Campbell said the financial pressures the Auto Fund is facing could threaten its long-term sustainability if changes aren’t made.
“The Auto Fund is worth protecting. It is really a bit of jewel, a bit of gem for Saskatchewan, and the financial strength of that program is really what allows us to have really affordable, reliable auto rates,” Campbell said.
Ensuring the corporation is running efficiently is one method the CEO said SGI is taking to try and avoid future rate hikes.
The provincial NDP Opposition’s SGI critic Darcy Warrington spoke to reporters after Harrison’s news conference ended. He said the government’s decision left him with “some real concerns.”
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Warrington said as Saskatchewanians face rising costs, including increased SaskPower rates and an affordability crisis, the government should have found another source of additional funds for SGI.
“They can’t afford (it),” he added, alleging Harrison diminished the extra cost. “This all adds up.”