Manitoba Public Insurance (MPI) has filed its General Rate Application (GRA) with the Public Utilities Board (PUB), requesting approval of a 2.07 per cent increase to the overall rates of its universal compulsory automobile insurance (Basic) for the 2026/27 insurance year, which begins on April 1, 2026. If approved, this means that Manitobans will see an annual increase of $21 to the average private passenger vehicle policy next year, which is approximately $1.75 per month.
Auto insurance companies in North America are dealing with higher claim costs because modern cars are more complex, contain advanced technologies and are more expensive to repair. Despite this, MPI has worked diligently to keep insurance rates affordable for Manitobans. “While the market remains volatile and the cost of claims continues to rise, this rate request truly emphasizes MPI’s commitment to keep auto insurance affordable for all Manitobans,” said Satvir Jatana, MPI’s President and CEO. “We are taking decisive action to manage these pressures as we continue to deliver value for our customers across the province.”
Product adjustment and expansion maintains affordability
In the GRA, MPI will introduce an adjustment to the deductible for the Basic insurance product, from $750 to $1,000, to keep the Basic product affordable and comprehensive. At the same time, MPI will add a new $750 option to the list of lower deductibles it offers through its Extension line of business, which already includes $200, $300, and $500.
“We’re pleased to give customers the flexibility to maximize the affordability of their mandatory coverage by choosing a higher deductible, or to keep their existing coverage by selecting a lower deductible at an affordable price,” said Jatana. “Furthermore, a proposed overall increase of two per cent to our Extension line of business, which includes products like rental vehicle insurance, additional third-party liability insurance and lower deductibles for Basic insurance, will help keep all products affordable.”
New DSR level rewards safest drivers
MPI is also applying to the PUB to expand the merit side of the Driver Safety Rating (DSR) scale to include level 20. If approved, Manitobans who move into this level will save 53 per cent of the cost of their automobile and driver insurance in the 2026/27 insurance year. “This is great news for Manitoba’s safest drivers, and we are proud that this fair and simple system allows us to recognize their contribution towards safer roads through incentives like discounts on insurance premiums,” said Jatana.
The PUB normally issues its order in December. The proposed rates would be effective April 1, 2026, but because renewal dates are staggered, some vehicle owners will not pay their new rates until March 31, 2027.
