January 11, 2022 by Jason Contant
Manitoba Public Insurance (MPI) is issuing its third COVID-19 auto insurance rebate in less than two years.
The latest rebate totalling $312 million equals about $328 on an average private passenger policy, MPI said in a press release Dec. 30, 2021. In total, MPI has provided rebates of nearly $500 million to its policyholders — $110 million in May 2020 and $69 million in December 2020.
“This latest rebate was made possible due to a combination of fewer claims during the COVID–19 period and continued strong financial results,” MPI says in the release. “The rebate is calculated on the Basic Autopac premiums paid between November 22, 2020, and December 9, 2021, and is expected to be about 27 per cent of the customer’s annual Basic Autopac premium.”
About 578,000 cheques will be issued and MPI customers can expect a rebate cheque in mid-February 2022. Rebate amounts of $10 or less will be credited to the customer’s account. Approved rates will be effective April 1, 2022, but because renewal rates are staggered, some vehicle owners will not pay their new rates until March 31, 2023.
In mid-December 2021, Manitoba’s Public Utilities Board approved the rebate as well as a 1.57% decrease for MPI’s 2022/23 general rate application. This means the average passenger vehicle owner will pay about $16 less in premiums per year.
Another public auto insurer, Saskatchewan Government Insurance (SGI), says it will implement a “revenue-neutral rate rebalancing” on Saskatchewan Auto Fund premiums, without changes to motorcycle and taxi rates. Although most drivers will see their rates adjusted, the rebalancing will result in a net zero change in revenue to the Auto Fund, SGI said in a release Dec. 20, 2021.
Overall, approximately 49% of customers will see a decrease in their auto premiums, while 51% will receive an increase. No customer will see an annual increase in their premiums higher than 10% on premiums higher than $1,000 (and a dollar cap of $100 for premiums under $1,000).
Feature image by iStock.com/fluxfoto