December 6, 2002 by Canadian Underwriter
Following a request from Manitoba Public Insurance (MPI) to keep rates the same in that province, the Public Utilities Board (PUB) has ordered a 1% reduction in basic public auto insurance rates. This represents the fifth year MPI has held rates steady.
With the decision, about 51% of drivers in Manitoba will pay the same or slight less for coverage, with most seeing a reduction of $20 to $80.
“Since 1999, Manitoba Public Insurance has not increased Basic Autopac rates,” says president and CEO Jack Zacharias. “I can’t think of a single auto insurer in Canada that can say it has reduced auto rates three times and provided vehicle owners with an $81 million dividend.”
He notes that nationwide, rates increased an average of 15.7% in the past year.
About 391,000 drivers will pay less, with more than 25,000 paying the same rates as last year. About 94,000 owners of trailers and off-road vehicles will see a decrease of about 10% to reflect good claims experience in that group.
Of the 48.6% of premiums set to be increased, equaling about 395,000 drivers, 83% will increase less than $50. Motorcyclists who drive sport bikes will pay more, however, with the PUB instituting a 15% hike, even higher than MPI had requested.
Most of the decreases effect drivers in Winnipeg and Southern Manitoba, including Brandon, while drivers outside that area will pay slightly more.
As well the PUB has agreed to a $40 annual discount for vehicle owners who install an aftermarket anti-theft device that meets the national standard set by the Vehicle Information Centre (VICC).
All rate changes are effective March 1, 2003, as well as the anti-theft device discount.