Manitoba auto insurance rates to drop by an average of 8.8% next year

Manitoba drivers will see their auto insurance premiums drop by an average of 8.8 per cent next year.

The Public Utilities Board (PUB) on Wednesday approved MPI’s request, which averages out to a savings of more than $100.

The rate cut will take effect beginning next year on April 1.

MPI has previously said it can deliver savings because the Crown corporation met its capital target — the minimum amount the company should hold in reserve to protect against market volatility. 

Former CEO Ben Graham also credited overall fiscal prudence and clamping down on fraud for contributing to the additional savings.

The corporation has been turning over more money to ratepayers this year. MPI has received approval from PUB for a second round of rebates due to the plummeting number of claims during the coronavirus pandemic.

It plans to dish out an average of $100 per customer in the next couple weeks, after issuing an average of $140 to $160 a few months into the pandemic.

20% rate hike for vehicle-for-hire drivers

Some customers will see an increase in their rates, however. 

Drivers insured under the passenger vehicle for hire class will face a 20 per cent increase in their rates for 2021-22 and a subsequent 20 per cent increase for each of the following two years.

The board ruled that insurance rates for these vehicles are heavily subsidized already, which is a “patent unfairness” to taxi drivers.

MPI was originally planning an average rate cut of 10.5 per cent, but they downgraded their expectations before the PUB hearing started in October.