The Saskatchewan government has approved a 3.75% rate hike for the province's auto insurance fund, SGI, effective June 1, 2027, despite recommendations to not increase rates due to affordability concerns. The rate hike is driven by rising repair costs, which have increased by nearly 50% over six years and are estimated to be $3,000 higher this year compared to 2020. According to the government, the average vehicle owner in Saskatchewan will pay an additional $39 per year, or $3 per month, as a result of the rate hike. SGI President Kent Campbell has expressed concerns that if changes aren't made, the fund's long-term sustainability could be threatened.
Written by the local model on 2026-09-04,
using this article's own text rather than the other coverage of the
same event (that is the story summary below).
Story summary
Saskatchewan's SGI (Saskatchewan Government Insurance) has approved a 3.75% increase in auto insurance rates for 2027, despite a recommendation from the province's rate review panel to not raise rates due to affordability concerns. The decision was driven by a 50% increase in vehicle repair costs over the last six years, with estimated $3,000 more per year spent on repairs compared to 2020. Minister Jeremy Harrison attributed this rise to the increasing cost of technology such as cameras and sensors in modern cars. The rate hike will take effect in two rounds, starting on June 1, 2027.
Written for “Saskatchewan Insurance Rate Hike” on 2026-09-05,
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Leaning score +0.35 for article 4041 (medium confidence, 2 verified quotes) · logged 2026-09-04
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.
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Insurance → move → 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.
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government → tell → rebalancing
“(This has) really been driven by the increased cost per incident per vehicle repair.
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This → drive → repair
(It has) nearly gone up by 50 per cent per vehicle cost over the last six years,” Harrison said.
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Harrison → go → years
He estimated repair costs have climbed by $3,000 this year compared to 2020.
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costs → estimate → 2020
Technology such as cameras and sensors in modern cars was said to be a large factor in that rise.
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Technology → say → rise
“We are focused on that balance between sustainability and affordability.
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We → focus → sustainability
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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we → think → increases
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The second round of increases will come into effect on June 1, 2027, according to a Saskatchewan government news release.
uncertain
round → get → release
The first round hit earlier this summer.
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round → hit → ?
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.
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province → pay → rate
The rate increase will not apply equally across all vehicle classes.
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increase → apply → classes
Instead, it will be determined based on the anticipated claim costs of each vehicle class.
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it → determine → class
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Tories → launch → referendum
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Court of Appeal
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.
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changes → say → sustainability
“The Auto Fund is worth protecting.
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Fund → protect → ?
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.
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Campbell → allow → rates
Ensuring the corporation is running efficiently is one method the CEO said SGI is taking to try and avoid future rate hikes.
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SGI → ensure → hikes
The provincial NDP Opposition’s SGI critic Darcy Warrington spoke to reporters after Harrison’s news conference ended.
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conference → speak → reporters
He said the government’s decision left him with “some real concerns.”
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decision → say → concerns
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.
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government → say → SGI
“They can’t afford (it),” he added, alleging Harrison diminished the extra cost.
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Harrison → afford → cost
“This all adds up.”
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This → add → ?
