Manitoba lowers auto premiums; credits auto theft program

Three out of four Autopac customers could pay less for auto insurance next year because of a 2.6% rate cut made possible by expected reductions in auto theft, according to Manitoba Public Insurance (MPI).
MPI has filed a rate application with the province’s Public Utilities Board that would reduce the cost of Basic Autopac for nearly 650,000 policyholders and cut the average family passenger vehicle premium by $25 to $830.
If approved, MPI says, it will be the eighth year in nine that the corporation has either held the line or decreased rates for basic compulsory coverage.
“Manitobans are continuing to enjoy the benefits of the best auto insurance system in Canada,” MPI president and CEO Marilyn McLaren said. “After nearly a decade of rate stability, Manitoba has among the lowest auto insurance rates in the country.
“Just a month after we returned CD$58 million to Manitobans in the form of a premium rebate, we are dialing back rates for the 2007-08 insurance year.”
The proposed rates would be effective Mar. 1, 2007. However, since renewal dates are staggered, some vehicle owners wouldn’t pay the new rates until Feb. 29, 2008.
Overall, the corporation expects:
Premiums would decrease for 644,050 of the 864,086 policies. The reduction would be $40 or more for about 21% of those receiving reductions. About 31% would pay $30 less, and 40% would pay $20 less.
Of the 19% of customers who would pay more, about two-thirds would see increases of less than $20.
McLaren says rates are dropping because Manitobans are starting to take action against auto theft by protecting their vehicles with immobilizers.
“We said that all Manitobans would benefit in many ways when we win the fight against auto theft,” McLaren said. “This rate reduction is proposed with the expectation that most at-risk vehicle owners will continue to respond to our [immobilizer] program and protect themselves from theft.”