December 7, 2009 by Canadian Underwriter
Most vehicle owners in Manitoba will pay the same or less for auto insurance in 2010-11, Manitoba Public Insurance has announced.
For 11 out of the last 12 years, MPI has held the line on basic Autopac rates, as approved by the Public Utilities Board (PUB).
The approved rate application for 2010-11 means 333,290 passenger vehicle owners, 18,000 commercial vehicles, 2,900 motorcycles, 4,300 public vehicles, 72,000 trailers and 49,000 off-road vehicles will be paying less for Basic Autopac next year.
The average passenger vehicle premium will fall by Cdn$2, to Cdn$886.
Of the estimated 45% of Manitobans who will pay higher premiums, most will face increases of less than Cdn$20.
Because of staggered renewal dates, some vehicle owners will not pay the new rates until February 2011.
The PUB also ruled the public auto insurers’ Rate Stabilization Reserve (RSR) for basic insurance should be within a target range of Cdn$77 million to Cdn$154 million.
This range is reflective of 10% to 20% of written premiums, the PUB ruling says.
“I’m pleased, based on the evidence that was presented, that the PUB choose to significantly increase the upper limit of its RSR target,” Marilyn McLaren, president and CEO of MPI, said in a release.