The Public Utilities Board is in the process of reviewing a proposal from Manitoba Public Insurance (MPI) which calls for an average rate hike of 2.7%, as well as tougher penalties for drivers with negative safety ratings.
Although drivers with a safety rating of zero will see no change to the amount of money they have to pay, those below zero could see their license fees increase by $100 to $500 under the proposed rules. Those at the lowest possible end of the scale (-20) could see a $3,000 hike when they renew their license.
“Let’s say a driver at minus-8 on the driver safety rating level, the current surcharge is $400. The proposed surcharge would be $800,” Consumers Association of Canada Manitoba division counsel Byron Williams explained to CBC.
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“At minus-12, the current surcharge is $900. The proposed surcharge would be $1,400. At minus-3, the current surcharge is $200. The proposed rate is $300.”
If passed, the fee structure change could net MPI $17.5 million in additional revenue.
The insurer stated that the proposed change is “designed to directly incentivize better driving habits.”
CAA Manitoba president and CEO Mike Mager said that his company supports the proposed fee structure.
“From my perspective, we have a scale that bottoms out at minus-20. To get down there, you’ve had to do some very significant and very dire driving behaviours that would create an unsafe environment,” Mager told CBC. “We need individuals who are exhibiting those sort of driving behaviours to get the point.”
MPI’s proposed 2.7% rate hike would cost drivers an extra $29 per year on average if approved. The insurer revealed that nearly 630,000 vehicles in Manitoba, excluding trailers and off-road vehicles, would be affected by the hike.
Do you agree with the proposals? Are they fair? Leave a comment below with your thoughts.
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