March 2, 2007 by Canadian Underwriter
Manitoba Public Insurance (MPI) has lowered auto insurance rates for three-quarters of the provinces vehicle owners in 2007.
In addition, it is offering a 10% rebate on premiums paid during the 2005-06 year.
The rates taking effect today are 2.6% lower overall than rates in 2006-07, marking the eighth year out of the last nine in which [MPI] has held the line or reduced basic Autopac rates without lowering customer service or reducing coverage, MPI announced in a press release.
Premiums will decrease for 644,050 out of MPIs 864,086 policies.
For about 21% of those receiving reductions, the decrease is expected to be $40 or more.
About 31% will see their premium decreased by $30, and roughly 40% will pay $20 less.
The average family passenger vehicle premium will be $805, a reduction of $25.
Renewal dates for customers are staggered throughout the year, so some vehicle owners will not pay the new rates until February 2008.
By early May, the corporation also expects to have a 10% premium rebate ordered by the Public Utilities Board in the hands of customers who paid for basic Autopac during the 2005-06 insurance year, MPI announced.
The Cdn$60 million rebate will be the second rebate in as many years, MPI says. In all, more than 600,000 cheques will be sent out with the average being worth about $100.
In total, nearly Cdn$200 million will have been returned to customers over the last six years, MPI president and CEO Marilyn McLaren said in a statement. No private auto insurer can make such a statement.