Saskatchewan ends 12-year rate freeze as auto insurance costs climb across Canada

Saskatchewan isn’t alone in feeling the squeeze. Auto insurance costs are climbing across Canada, which means even the country’s traditionally cheapest coverage markets are running short on room to keep absorbing it.

Why SGI says the math no longer works

For every $1 SGI collected in auto premiums in the 2024–25 fiscal year, it paid out $1.21 in claims costs, according to a technical report prepared for the Saskatchewan Rate Review Panel by Cathcart Advisors Inc. and Risk Consulting Services Inc. Derek Lothian, President and CEO of the Insurance Brokers Association of Saskatchewan (IBAS), warned in an IBAS statement that the fund is running out of time to close that gap without intervention, estimating a shrinking window to restructure the system before reserves are depleted.

How did the reserve get this low in the first place?

The reserve actually grew during the pandemic, when fewer people were driving and crashes dropped, and SGI issued $285 million in rebate cheques to bring the fund back down toward its target level. What it didn’t anticipate was that inflation on car parts and repairs would keep outpacing general inflation in the years that followed, a squeeze now compounded by a tariff dispute pushing up the cost of parts, according to SGI’s chief financial officer, Drew Kendel.

What this means dollar-wise for your renewal

SGI’s rate review panel approved the increase in two stages: A 3.75% adjustment already in effect since June 1, 2026, and a second 3.75% adjustment set for June 1, 2027. The average vehicle owner can expect their annual premium to rise by about $39, or roughly $3.25 a month, though the increase won’t land evenly. Because SGI sets rates based on the claims history of each vehicle’s make, model and year, some drivers will see bigger jumps than others, and a small share could even see their rates go down.

Saskatchewan still isn’t the worst off

Nationally, Canadian auto insurance premiums rose an average of 43% between the start of 2023 and June 2026, according to Applied Systems Canada, with Alberta seeing the steepest single-year jump at nearly 23%.

SGI itself paid out 11% more in claims than it collected in premiums in 2024, and Alberta’s private insurers paid out about 8% more than they collected that same year, while British Columbia’s and Manitoba’s public insurers stayed in healthier territory, according to Statistics Canada data cited in the report. A separate industry breakdown puts Alberta’s most recent annual increase at 22.6%, followed by Atlantic Canada at 9.4% and Ontario at 7%, with Quebec’s rates rising just 0.9%.

What drivers can do before their next renewal

• If you live somewhere with a private insurance market, get quotes from more than one company before renewing. Competition is the main lever most Canadian drivers have on price.
• Ask your insurer how your specific vehicle’s make, model and year affects your premium, since claims and repair costs vary widely by vehicle.
• Review your deductible and coverage limits. Raising a deductible you can comfortably afford in an emergency can meaningfully lower your premium.
• Ask about discounts for a clean driving record, bundling home and auto policies, or winter tire installation, which some insurers still recognize.

Saskatchewan’s decade-plus rate freeze made it an exception in Canadian auto insurance, not the rule, and its end is a reminder that even the country’s lowest-cost insurance markets aren’t immune to rising repair costs and claims. Whether you’re in Regina or Toronto, the safest move heading into your next renewal is to check what’s actually driving your premium, not assume last year’s price will hold.