Sask. drivers face SGI rate increase of 3.75 per cent in 2027

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In the statement, the government said the Auto Fund “remains under significant pressure with record claims again this summer.”

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“The panel’s recommendations recognize that claim costs and inflation are putting significant financial pressure on the Rate Stabilization Reserve and overall Auto Fund sustainability,” said the Minister Responsible for SGI, Jeremy Harrison.

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

Harrison said the cost of vehicle repairs has gone up year over year, noting that a $5,000 repair in 2020 would cost nearly $8,000 today.

He said the increased use of technology in vehicles has contributed significantly to the cost of vehicle repairs.

“If you bump a fender filled with sensors, filled with cameras, well, you have to replace the entire thing,” he said.

The SRRP had recommended an immediate 6.5 per cent capital margin increase. The government, however, instructed SGI to move forward with the lower rate, saying, “This approach balances affordability concerns with the Auto Fund’s financial needs.”

The average increase will work out to about $39 per customer.

NDP SGI critic Darcy Warrington says Saskatchewan residents should not have to take on another SGI rate hike. (Image Credit: Mia Holowaychuk/CKOM)

NDP response to the SGI rate hike

NDP’s SGI critic Darcy Warrington said Saskatchewan residents are already experiencing an affordability crisis.

“They’re struggling to pay their bills, their food at the grocery store, gas, SaskPower rates going up, and the rate review panel about a month ago suggested that the people of Saskatchewan cannot take on any more,” he said.

Warrington said potential savings could be found by reviewing the books and individual budget lines. He added that the SRRP has pointed to possible adjustments without increasing rates, licensing and registration fees.

“People that are following all the rules and have excellent driving records, they’re going to be affected by this, and we don’t think that’s right,” Warrington said.

— with files from 650 CKOM’s Mia Holowaychuk