Manitoba’s Public Utilities Board (PUB) has ordered the province’s public auto insurer to extend primary auto insurance coverage charges 5.7% for the 2025/26 insurance coverage yr.
The order applies to Manitoba Public Insurance coverage’s (MPI) obligatory, primary line of enterprise that’s obligatory for Manitoba drivers. The rise takes impact Apr. 1, MPI says in a press release.
In MPI’s common price software final July for common obligatory auto insurance coverage (primary) premiums, the company requested an total price improve to primary premiums of three%. Nonetheless, MPI’s calculations of the general primary price improve utilizing the accepted actuarial observe (AAP) was 6.77%, PUB notes in its order.
“MPI has confirmed that the actuarial calculations don’t assist the requested 3.0% price improve,” PUB writes in its order issued Tuesday. “Throughout the listening to, MPI took the place that AAP is ‘the place to begin’ and that it has taken into consideration the necessity for premiums to be inexpensive and predictable for ratepayers.”
However PUB says it has “constantly aimed for inexpensive charges for ratepayers, noting that its orders for the previous 5 years have resulted in charges reducing by greater than 15%. As well as, the Board permitted $439.1 million in rebates in 2021 and 2022.”
In July 2023, MPI requested no change to total charges for the 2024/25 insurance coverage yr, however was ordered to make a 5% improve. By 2022, MPI had utilized for its fourth consecutive annual rate decrease.
The 5.7% improve to primary charges coming this April represents a rise of $50.84 per yr or $4.24 per thirty days for the typical passenger automobile coverage, MPI stories.
MPI affords further protection by way of its elective extension line of enterprise, which incorporates further third-party legal responsibility protection and rental automobile insurance coverage.
Although the protection shouldn’t be obligatory, MPI stories 96% of consumers select to buy the merchandise by way of the general public auto insurer. The road of enterprise entails barely larger premiums to scale back the deductible clients would pay within the occasion of a declare.
Within the present insurance coverage yr, MPI’s board of administrators permitted a ten.32% improve to extension charges, representing a rise of $9.60 per yr for the typical passenger automobile coverage.
Starting Apr. 1, extension charges will improve 2%, or $1.99 per yr on the typical passenger automobile coverage.
PUB additionally permitted MPI’s software for a $10 improve to the annual price of a driver’s licence, which has not elevated since 1997.
An enlargement of the driving security score system was additionally granted, that means clients who transfer to the brand new stage 19 on the dimensions will obtain an extra low cost above the present most of 46%.
Characteristic picture by iStock.com/EHStock
