A 3.75 per cent hike to SGI car insurance rates took effect Monday morning.

SGI says the main drivers of this need for a rate hike include inflation and advanced technology in newer vehicles which caused a sharp rise in the cost of vehicle repairs.

The Crown Corporation adds that a 3.75 per cent hike translates to an average annual increase of $38 the first year.

An additional 3.75 per cent will be charged in June of 2027.

That’s not all. Also this year, SGI is also hiking deductibles on basic automobile insurance. The typical $700 deductible will increase to $950, about 35 per cent. A $15 administrative fee will apply to new or renewed driver’s licenses and new vehicle registrations as of January 1st.

Motorists will also pay $2 more for license payment transactions, and the Crown corporation will charge $5 more for vehicle registration renewals.