Average family passenger vehicle will increase $18 per year
For the first time in 10 years, Manitoba Public Insurance has asked the Public Utilities Board for an increase to Basic Autopac rates. If approved, rates will increase by1.8 per cent for the 2014/15 insurance year. Overall, rates decreased by four per cent in 2011, eight per cent in 2012, and remained stable in 2013.
“For 14 of the last 15 years, the Corporation has either held the line or reduced rates. This has resulted in a cumulative, total rate decrease of 17.8 per cent for Autopac ratepayers,” said Marilyn McLaren, President and Chief Executive Officer, Manitoba Public Insurance. “A moderate increase in claims experience combined with lower than expected investment income has resulted in a slight increase in Autopac rates for 2014/15.”
A December 2012 report released by Deloitte shows that Manitobans pay the lowest auto insurance premiums in Canada, McLaren said.
If the application is approved, a total of 707,090 vehicles owners will receive a premium increase. Of the vehicles that will receive premium increases, most will be less than $50. A total of 342,319 vehicle owners will receive a premium decrease or stay the same in 2014. The average passenger vehicle premium will be $898. Overall:
- 67 per cent of premiums will increase (707,090 vehicles). 603,377 vehicles will increase by $50 or less.
- 25 per cent of premiums will go down (259,085 vehicles). Of those decreasing, 92 per cent – 238,587 vehicles – will decrease by $50 or less
- Eight per cent of premiums will remain unchanged (83,234 vehicles)
In total, 97.3 per cent (9,897) of passenger vehicles will receive rate decreases in the far north (all areas north of the 55th parallel, including Thompson, Lynn Lake and Churchill). As well, 85.6 per cent (12,733 units) will receive rate decreases in the near north (north of the 53rd parallel, including Flin Flon, The Pas and Grand Rapids).
Over the past four years – if this application is approved – vehicle owners in the far north will have received average rate decreases totaling 22.6 percent or $197, while in the near north the average rate decrease is 21.6 percent or $176.
For motorcycles (excluding mopeds and small-engine displacement motor scooters) the Corporation has applied for an average rate decrease of 7.6 per cent or $83 per vehicle. If approved, the average motorcycle rate will decrease to $1,001 from $1,084.
Mopeds and small-engine displacement motor scooters will experience an average rate increase of 15.1 per cent, if approved by the PUB. The average rate for these vehicles will increase from $287 to $330 per year, or by $43.
Annual report: Four decades of service and stability
Manitoba Public Insurance also filed its 2012 annual report with the Legislature yesterday. The report reflects the Corporation’s history of prudent fiscal management and customer service commitment and demonstrates our continued ability to offer all Manitobans comprehensive coverage at among the lowest rates in the country.
The Corporation’s fiscal performance was affected by the investment markets and increased claim costs, resulting in a net operating loss of $48.1 million.
Last year, Manitobans filed an average of 1,153 claims daily, and the corporation paid out $2.4 million in benefits, every working day. The average cost per claim is $2,600.