MPI holds the line on auto insurance rates

Manitoba Public Insurance (MPI) requested no overall insurance rate increase for 2013-14 in its general rate application filed with the Public Utilities Board (PUB) on June 14.

“Today’s rate application confirms the strength of the public auto insurance system,” MPI president and CEO Marilyn McLaren said. “Our record is unmatched anywhere in Canada and demonstrates our commitment to providing Manitobans with the rate stability they expect. We have held the line or reduced rates 14 of the last 15 years.”

If the PUB approves the application, 430,531 vehicles (42.2%) will receive reductions in their premiums next year, while 23,154 vehicles (2.3%) will remain the same. A total of 556,522 policies (55.5%) will be increased, with most hikes amounting to less than $50, MPI reports.

Pending approval of the application, almost 25,000 passenger vehicles in northern Manitoba will experience a reduction in Basic Autopac premium. Also, the application requests rate decreases for a total of 8,205 motorcycles in the province.

This will be the third consecutive year these communities have received rate decreases, MPI notes in a statement.

In total, 10,027 passenger vehicles (98.3%) will receive rate decreases in Manitoba’s far north (all areas north of the 55th parallel, including Thompson, Lynn Lake and Churchill. As well, 14,690 passenger vehicles (100%) will receive rate decreases in the near north (north of the 53rd parallel, including Flin Flon, The Pas and Grand Rapids).

If PUB approves the application, vehicle owners in the far north will have received average rate decreases totalling 21.6%, or $191, over the past three years. In the near north, over the same period, the average rate decrease is 20.9% or $172.

“The average losses in both territories have been trending down in recent years, largely due to a reduction in serious losses,” said McLaren. “There were $2.5 million in serious losses reported over three years (2009-10 to 2011-12) for both territories, compared to $11.4 million reported in the previous three years (2006-07 to 2008-09). These reductions gradually are incorporated into their rates.”

The corporation has requested a 0.2% overall average decrease to motorcycle rates, including moped and motor scooters. If approved, 62.3% of motorcycles will receive a decrease in rate, 5.3% will remain the same and 32.4% will increase.

In total, 8,205 motorcycle owners will receive a decrease in their premiums. The majority of those owners are registered in Winnipeg and central and western Manitoba.

Mopeds and small-engine displacement motor scooters (3,092 units), however, will experience an average rate increase of $44 to $290 per year, up from $246. (Note: small-engine displacement motor scooters are 500 cc and less.)

“The number of moped and motor scooters has more than quadrupled in size over the last decade,” said McLaren. “This rate increase is due to an increase in claims costs attributed to these types of vehicles.”