Manitoba Public Insurance (MPI) has submitted a provisional request to decrease the average rates of private vehicle insurance in the province – though the insurer is also looking to raise the rates of commercial vehicles and motorcycles.
The insurer’s filing with the Public Utilities Board revealed that MPI has applied for an average rate decrease of 0.9% this year. This is the insurer’s fourth straight year of requesting an average rate decrease.
"By ensuring sufficient capital, we're able to absorb any unforeseen variations in claims costs, which allows the basic compulsory rates to be kept stable, predictable and affordable as possible for all Manitoba drivers,” said MPI vice president and chief financial officer Mark Giesbrecht.
The Crown insurer also reported that private passenger registrations will decrease by 0.4%.
Manitoba is also looking to extend its safety rating system, which currently offers drivers a discount for safe driving. MPI had requested to expand the levels from 16 to 17; Giesbrecht added that MPI plans to increase the system to 20 levels within the next five years. Giesbrecht explained while drivers can expect an average rate decrease of 0.9%, they could see another discount of 0.6% depending on where drivers fall within the revised system.
But not all vehicles will see insurance rate reductions, Motorcycles will experience an average rate increase of 1.6%, while commercial vehicles will see a considerable 3.7% increase. Likewise, the rates of public class vehicles will rise by 1.7%.
Commercial vehicles may be looking at higher insurance costs, but the rates for trailers could decrease by 8.6% should MPI’s rate filing be approved.
On top of the rate request, MPI is asking the PUB to greenlight the removal of the capital release provision. The provision had previously given a 5% discount from the overall rate.
CBC News reported that as MPI’s request is provisional, it could be adjusted ahead of the PUB’s hearing in October. A decision on the rate changes is expected in December.
