Manitoba Public Insurance (MPI) announced today that 900,000 vehicles could have reduced Basic auto insurance premiums next year.
The proposed 6.8 per cent decline in premium revenue for the 2012/13 insurance year is pending approval from the Public Utilities Board.
The reduction will lower the average premium rate for private passenger vehicles at $836 – $61 less than the average rate in 2010/11.
“Our record of rate stability is unparalleled, having held the line or reduced rates 13 of the last 14 years,” MPI President and CEO Marilyn McLaren said today during a press conference.
McLaren also said that the proposed reduction is a result of a drop in injury claims, theft costs and improvements in operational efficiency.
If the application is approved, 905,610 – or 91 per cent – of Manitoban vehicles will receive reductions in their basic compulsory coverage next year, while seven per cent will remain the same.
MPI also anticipates that two per cent of vehicles will see an increase, most of which will be less than $50, according to MPI’s press release.
What’s more, motorcycles could see a 10.3 per cent decline because a greater portions of the claims received are based on injuries.
If approved by the Public Utilities Board, the average premium for motorcycles would be $911.
However, it is expected that people with mopeds will see an increase of $45 on average.
“As years go on, more of them (mopeds) are coming on the road,” said Brian Smiley, communications officer at MPI. “The more of them on the road, the more people who are getting injured because there is less steel to protect people. If someone hurts themselves or breaks a leg, we’ll take care of that person (especially) if they are unable to work.”
A hearing with the Public Utilities Board is expected to take place sometime in September of this year and could last anywhere from seven to 10 days, said Smiley.
A final decision will be made in December in 2011. If approved, the new rates will be applied come March 2012, Smiley said.
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