Article Summary
Public auto insurers in Saskatchewan and Manitoba are raising rates because vehicle repair costs have increased 25% since 2019, driven by advanced vehicle technology, materials, and labor cost increases. Saskatchewan implemented a 3.75% rate increase with another proposed for June 2027, while Manitoba raised deductibles and approved a 1.77% rate increase.
- Vehicle damage claim costs have increased 25%, from $4,880 per claim in 2019-20 to $6,101 per claim in 2024-25
- Saskatchewan Auto Fund implemented a 3.75% interim rate increase and proposed a second 3.75% increase for June 1, 2027
- Advanced technology, materials, and repair procedures in newer vehicles are major cost drivers
- Manitoba increased Basic Autopac deductibles from $750 to $1,000 effective April 1, 2026
- Auto body repair labor rates have increased 3% annually in 2023, 2024, and 2025
Drivers in Saskatchewan and Manitoba are seeing more signs of the pressure higher repair costs are putting on public auto insurance companies.
In Saskatchewan, a 3.75% interim increase to Saskatchewan Auto Fund rates came into effect at the beginning of the month. A second 3.75% increase has been proposed for June 1, 2027. Saskatchewan Government Insurance, Regina’s public auto insurer, filed the proposal after a sharp increase in vehicle damage claim costs.
The SGI rate proposal, first announced in the beginning of the year, says repair costs and vehicle values are expected to keep rising. The filing points to “increased complexity of technology, materials and repair procedures used in newer vehicles” as a major factor. It also notes autobody repair labour rate increases of 3% on April 1 in 2023, 2024 and 2025.
“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,” said Penny McCune, SGI president and chief executive officer, in the January release.
The average cost of vehicle damage claims has increased 25%, from $4,880 per claim in 2019-20 to $6,101 per claim in 2024-25, according to the SGI material.
“SGI hasn’t had a general rate increase in over 10 years,” said McCune. “With the sharp jump in auto damage costs, it’s not possible to keep rates flat. Recognizing the financial pressures Saskatchewan residents are also facing, SGI is proposing two modest increases over two years.”
In Manitoba, the public auto insurer recently changed the Basic Autopac deductible from $750 to $1,000 for policies in the 2026/27 insurance year. The change took effect April 1.
The change was included in MPI’s 2026/27 General Rate Application. A Public Utilities Board order later set a 1.77% increase to Basic insurance rates for the year, below the 2.07% increase requested in the application.
MPI's application also linked the rate request to claim cost pressure.
“While the market remains volatile and the cost of claims continues to rise, this rate request truly emphasizes MPI’s commitment to keep auto insurance affordable for all Manitobans,” said Satvir Jatana, MPI president and chief executive officer. “We are taking decisive action to manage these pressures as we continue to deliver value for our customers across the province.”
The deductible change has a direct front-counter impact for Manitoba shops. Customers who remain at the Basic deductible level are responsible for $1,000 on applicable physical damage claims. Customers can lower that amount by buying an extension deductible option.
“We’re pleased to give customers the flexibility to maximize the affordability of their mandatory coverage by choosing a higher deductible, or to keep their existing coverage by selecting a lower deductible at an affordable price,” said Jatana.
Customers who had a $750 deductible are being automatically assigned a $750 Extension product deductible during renewal. They can change their deductible level through an Autopac agent before renewal and payment due dates.
