December 7, 2021 by Canadian Underwriter Staff
Clients telling you they can’t afford winter tires? Manitoba Public Insurance (MPI) administers a loan program to help get drivers the cash, and the traction, they need.
Loan terms last up to four years at prime plus 2% and up to $2,000 per vehicle. Loan amounts average $1,246 and the average term is 2.9 years, MPI said in a press release.
Since it was introduced seven years ago, 173,487 loans have been processed under the Low-Interest Winter Tire Program.
To participate, consumers can visit any of 767 participating tire retailers across the province (368 in Winnipeg alone). Retailers can confirm the customer’s eligibility and process the loan authorization.
Eligible tires carry the Transport Canada-endorsed snowflake symbol, and MPI noted loans can cover installation and other services in addition to the cost of the tires themselves.
An MPI report issued last year estimated winter tire use reduced collision claim frequency by 6.3%.
The report’s collision-claims analysis looked at winter month claims (November to March) during the insurance years 2011-12 to 2017-18 and compared claim frequency before and after purchase of winter tires for 111,872 vehicles.
It found 13,925 winter-month claims happening before winter tires were installed, compared to 9,802 winter-month claims after winter tires were installed.
“Loss prevention strategies of this nature ultimately benefit our customers through lower rates achieved by reduced collision counts,” said Satvir Jatana, MPI’s chief customer officer. “This … study confirmed that the use of winter tires can prevent collisions by reducing braking distances, and enhance vehicle handling on snow covered, icy road surfaces.”
Feature image by iStock.com/Goodboy Picture Company