By CRM Staff
Toronto, Ontario -- December 10, 2018 -- Manitoba's collision community can breath a little easier after it was confirmed that the province's public insurer is expecting an influx of cash. Last week, the Public Utilities Board (PUB) has ordered a rate increase in basic compulsory motor vehicle insurance for Manitoba drivers. The decision came in response to Manitoba Public Insurance (MPI) filing an application requesting higher rates in June.
The increase, which will come into effect on March 1 of next year, will see auto insurance premiums in Manitoba increase by an average of 1.8 percent, as reported by CBC News. The PUB announced that not all drivers would receive the same rate increases, as the rates are dependent on a number of factors, including: major vehicle class, driving record, and the make and model of the automobile.
While the PUB has mandated the premium increase, it has not hiked rates to the level requested by the insurer. In June, MPI requested a 2.2 percent increase on auto insurance rates in 2019. Had those rate increases been approved, Manitoba drivers would have been paying 0.4 percent more than what they are facing now. In 2017 MPI had requested an average rate increase of 3.7 percent for 2018, but were granted a 2.6 percent rise by PUB instead.