Winnipeg, Manitoba – Manitoba Drivers may see a 0.9 percent decrease in their insurance rates, Manitoba Public Insurance (MPI) announced on Monday. While most drivers can expect this decrease in their rates, it does not apply to all vehicle classes. Rates may increase, or decrease further dependent on the type of vehicle.
Vehicles that will see increases in their insurance rates include motorcycles (1.6 percent increase), commercial vehicles (3.7 percent increase) and public class vehicles (1.7 percent). Trailer rates, however, will decrease by 8.6 percent.
This announcement comes as MPI submits its annual filing with the Public Utilities Board.
Manitoba is applying to increase its safety rating system from 16 to 17 levels, as well. The system rewards drivers with discounts for safe driving. MPI plans to increase levels within the system to a total of 20 ‘levels’ over the next five years, which the public insurer says will allow for more specific placement along the rewards system, benefitting drivers and increasing the potential for further discounts.
Depending on where drivers fall on this new system, an added decrease of 0.6 percent could be applicable to driver rates.
While insurance claims have decreased over the past few years due to the Covid-19 pandemic, claims are back on the rise.
“As many Manitobans have returned to previous driving behaviours, so have our overall claims and subsequently our financial forecasting,” says Mark Giesbrecht, MPI Vice President and Chief Financial Officer.
Despite this, MPI says it has been able to keep insurance rates predictable and less volatile.
“By ensuring sufficient capital, we’re able to absorb any unforeseen variations in claims costs, which allows the basic compulsory rates to be kept stable, predictable and affordable as possible for all Manitoba drivers,” said Giesbrecht.
This is the fourth year in a row that MPI has been able to request an average decrease in insurance rates for drivers.
Hearings with the Public Utilities Board regarding these decreases will occur in October. A decision is expected to be made in December, but proposed changes would not be effective until April 1, 2023, at the earliest. Depending on the renewal dates of insurance contracts, however, some drivers may not see their new rates implemented until March 31st, 2024.