Saskatchewan Government Insurance (SGI) will proceed with a 3.75 per cent Auto Fund rate increase effective June 1, 2027, following recommendations from the Saskatchewan Rate Review Panel.
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The Saskatchewan government announced the decision Sept. 4, confirming the increase originally proposed by SGI earlier this year. The government also formally approved the 3.75 per cent increase that took effect June 1, 2026.
For Lloydminster residents living on the Saskatchewan side of the Border City, the increase means higher registration and insurance costs beginning next summer.
“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,” minister responsible for SGI Jeremy Harrison said in a release. “Our government’s response balances those financial realities with our commitment to affordability for Saskatchewan drivers.”
The average annual increase for Saskatchewan vehicle owners in 2027 is expected to be about $39.
What Rate Rebalancing Means
SGI’s rate-setting approach aligns rates with the anticipated claim costs of each vehicle class, rather than applying a flat percentage across all vehicles.
According to the provincial announcement, rising claim costs and inflation continue to pressure the Auto Fund. The Auto Fund has faced record claims again this summer, officials say.
Rate rebalancing will continue to ensure rates better reflect the claim costs associated with different vehicle types.
The Saskatchewan Rate Review Panel had recommended an immediate 6.5 per cent capital margin increase, but the government directed SGI to proceed with the lower rate increase originally proposed for June 1, 2027.
Saskatchewan vs. Alberta Insurance Costs
Following the 2027 rate increase, Saskatchewan will still have among the lowest basic auto insurance rates in Canada, according to the province.
The distinction matters for Lloydminster, where residents on the Alberta side navigate a private insurance market that has seen significant premium increases in recent years. Alberta announced plans to overhaul its auto insurance system in 2025 amid affordability concerns.
Saskatchewan operates a public auto insurance model through SGI, while Alberta drivers purchase coverage from private insurers in a competitive market.
Unlike a capital margin increase, which applies equally across all vehicle classes, SGI’s approach ties rates to expected claim costs for each make, model and year of vehicle.
The Rate Review Panel’s report acknowledged the significant financial challenges facing the Saskatchewan Auto Fund and recognized the need for action to support long-term sustainability of the fund.
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