Manitoba Public Insurance is modernizing its products to provide even greater customer choice and protection at no extra cost through new expanded coverage levels for Third Party Liability and Maximum Insured Value, under Basic Autopac insurance.
The new Basic Autopac product coverage changes will be submitted for rate approval to the Public Utilities Board in 2020. Once approved, the new expanded coverage levels and planned lower rates will be applicable to new policies purchased on or after April 1, 2021.
“This modernization is a long overdue change that offers improved customer choice of our product suite and greater protection for all Autopac customers,” said Ben Graham, President and CEO, Manitoba Public Insurance.
The Basic Third Party Liability limit (TPL) was last changed in 1983. This overdue change will increase coverage by 150 per cent, from $200,000 to $500,000, to provide enhanced protection for Manitoba drivers. Drivers retain the choice to further increase their TPL limits with optional coverage.
The Basic Maximum Insured Value (MIV) amount has not changed since 1998. This change will increase MIV coverage by 40 per cent – from $50,000 to $70,000 – and will provide more protection for Manitoba drivers to reflect increased vehicle values and the increased cost of repairs. Drivers can further increase their MIV limits with optional coverage.
“Customers will have the option of reducing their premium by increasing their deductible, which would then require them to pay more in the unfortunate event of an at-fault claim or they can purchase optional product deductibles and maintain similar coverage for a similar price. It is a win-win for customers as they have greater choice in selecting the coverage that best suits their needs,” said Graham.
For the first time since 1997, Autopac deductible coverage will be expanded to reflect modern realities and increase deductible option limits available to consumers. Changes include:
- Basic Autopac deductible will be adjusted from $500 to $750 for passenger vehicles and motorcycles at lower cost.
- Expansion of Optional deductible coverage levels from a range of $200 to $500.
- Elimination of the $100 deductible coverage category.
There will be two $200 deductible coverage options: The $200 Plus level will include waivers for glass repair, vandalism, theft and collision with an animal, while the $200 Standard deductible will have waivers for theft and collision with an animal. These coverage enhancements will not result in increased revenue for MPI.
“Approximately 95 per cent of our customers can maintain the same deductible at the same price and as liability settlement and vehicle values continue to trend upwards, Manitobans will be provided with even greater protection thanks to the significant increases to third-party liability and Maximum Insured Value,” said Graham.