Sarah Mills: There is no bright future for Canada Post
The first quarter report shows yet more losses and unless radical change happens. Sarah Mills thinks it is unlikely the ...
Insurance rates in Saskatchewan got more expensive as of Monday morning, when rate hikes for SGI plates came into effect.
The increase was announced in January, when the Crown corporation submitted a rate increase application to the rate review panel.
June 1 was the date for the increase, called an interim increase because the review panel hasn’t handed down a decision on it, yet. It’s been going through the process and a report is expected to go to the minister responsible on June 18.
Read more:
- Sask. Premier Scott Moe addresses Lobstick Fire
- Regina resident feedback requested on Wascana Parkway extension project
- Novice driver caught going 204 km/h near Saskatoon, fined $1,515
With the temporary increase, basic insurance for the average private passenger vehicle went up 3.75 per cent, or $48 a year. The average increases for other classes of vehicles varied from $1 to $96 more a year. Each individual vehicle varies within those classes, as well.
SGI said about one per cent of vehicle will see an average of an $8 decrease, while another one per cent will see their rates stay the same.
Click here see SGI rate increases between 2007 and 2026.
A general rate increase of 3.75 per cent is also proposed for 2027.
At the time it was announced, SGI called them modest increases and said it capped them to minimize the impact on vehicle owners.
“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,” Penny McCune, SGI’s president and CEO, said in a statement in January.
Click here to see SGI rate increases between 1987 and 2006.
In addition to plate insurance costs going up, in 2027, the deductible for basic insurance will go up – instead of SGI covering everything after $700 on a claim, it will rise to $950. This was announced with other fee increases, just ahead of the spring budget.
The announcement also said most other deductibles would increase by about 20 per cent.
Both increases have been blamed on inflation and the increasing cost of vehicle repairs by SGI.
In January, the company said the average claim was $4,880 in 2019-20, but increased to $6,101 in 2024-25.
“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,” McCune explained in January.
“The Saskatchewan Auto Fund operates on a break-even basis over time, but premiums haven’t been enough to cover costs in recent years.”
