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Manitoba drivers are facing an increase in Autopac premiums for the third consecutive year.
The Public Utilities Board approved a 1.8% overall increase in motor vehicle base rates on Monday, approving nearly all of the 2.2% increase required by Manitoba Public Insurance earlier this year. The increase comes into force on March 1.
MPI says the verdict will result in the average passenger car owner pay about $ 20 more for their insurance next year.
Crown Corporation has requested an increase to increase its reserves to absorb all future financial shocks due to unforeseen claims. With the increase, PUB predicts that MPI reserves could rise to $ 280 million in 2020 from $ 211 million in 2018.
The last fiscal year, MPI earned a profit of $ 91 million.
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• Private passenger vehicles – up to 1.98%
• Commercial vehicles – up to 1.91%
• Public (transit, school buses) – up to 0.14%
• Motorcycles – up to 2.14%
• Trailers – down 4.86%
• Off-road vehicles – down 20%
• General – up to 1.8%
Figures reflect average increases or reductions for each classification. Individual rates depend on a variety of factors, including the age and brand of vehicles, personal driving records, and whether different options are purchased.
Source: Public insurance in Manitoba
While the total premium rate for basic insurance of vehicles is climbing, several other factors, including insurance options, determine the finan- cial rates for motor vehicles.
Owners of private passenger cars will see that their rates averaged 1.98 percent in March. Owners of motorcycles will face an increase in the average rate of 2.14 percent, and the rates for the owners of off-road vehicles will fall 20 percent.
Lawyer Byron Williams, who represents the Canadian Consumers' Association of Canada's Manitoba branch office, said PUB made a "philosophical choice" to obey the MPI's desire to increase its reserves or "secure capital" as the corporation calls it.
"Our client took a different perspective," said Williams. "Our client's perspective is that (increasing) closer to zero would be appropriate, given that the MPI will still achieve flat rate rates."
He said there was "little evidence of suggestion" that the MPI would manage its "excessive reserves cautiously".
Erika Miller, a spokeswoman for CAA Manitoba, did not comment directly on the decision, but noted that vehicle owners have considerable control over how much they pay in insurance.
"Manitoba should be confident that no 1.8% increase in the overall rate will be affected by all assessors," Miller said. "The rating scale for reliability of Manitoba drivers in public insurance, which is informed by the individual driving record and other factors including the brand, model and year of the vehicle of the individual, as well as the cause of their vehicle and where they are driving, part of whether someone will see a change in the premium. "
In its 116-page decision, PUB supported recent MPI efforts to curb personal and IT costs.
"The board believes the corporation continues to take positive steps to raise its costs," the board said.
In the meantime, it gave final approval of the structure of rates approved on an interim basis earlier this year for driving services such as TappCar.
Reporter of the legislature
Larry Kush did not know what he wanted to do with his life until he attended a workshop for an editor at the High School in Regina in the summer of 1969 and listened to the student who spoke about the journalism program at the University of Carlton in Ottawa.
Read the full biography