Public Utilities Board sets MPI basic insurance rate hike at 1.77 per cent starting in April

Drivers will pay more to insure vehicles next year, but not as much as Manitoba Public Insurance requested.

The Public Utilities Board rejected the Crown corporation’s application to increase its overall basic insurance rates by 2.07 per cent, announcing Friday rates will instead rise by 1.77 per cent on April 1.

“This represents an annual increase of $21.89 to the average private passenger vehicle policy next year, which is approximately $1.82 per month,” MPI said in a news release.

MPI applied for the tax rate increase in June. The new rates will be in effect until March 31, 2027.

The Crown corporation also said it is adjusting its basic insurance deductible from $750 to $1,000.

“Customers can choose a higher deductible to maximize the affordability of the mandatory product or can opt for a lower deductible level by purchasing an optional product through MPI’s Extension line of business,” MPI said.

In a news release, the PUB said the decision to increase the basic deductible will require ratepayers to pay more for the same level of coverage.

It has recommended the Manitoba government make legislative changes to grant the PUB authority to oversee the rates set for MPI’s extension insurance, the release said.

The PUB approved an MPI application to expand the range of vehicle rate groups for private passenger and light truck vehicles from 41 to 45. That will allow the Crown corporation to “more accurately reflect the claims cost of vehicles in higher groups,” MPI said.

Individual premiums will vary depending on the type of vehicle being insured.

The driver safety rating system, which offers discounts based on clean driving records, has been expanded to include a new level. Members who move to +20 on the scale will receive a 53 per cent discount on their vehicle insurance, and 55 per cent off their driver insurance, MPI said.

fpcity@freepress.mb.ca