MPI made an announcement on Tuesday stating that it would lower the rates next year where a majority of the motorists will see a 6.8% cut in their auto insurance rates. This would be possible only because the theft costs and injury claims have come down. This has also increased operational efficiencies.
But the rates are yet to be approved by the Public Utilities Board and after the approval the new rates will take effect on the 1st of March 2012. For a private passenger vehicle the average premium would be $836 which is $61 lesser than the last year.
These savings are considered to be significant according to MPI President & CEO Marilyn McLaren. McLaren also stated that the number of injury claims following collisions had declined in the last 5 years.
In the string of good news during the recent times for Manitoba motorists, the Autopac savings are the most recent ones.
The province’s Public Utilities Board had earlier this year, ordered MPI to refund around $320 million to ratepayers after an actuarial review found that there was a surplus. So, about 579,257 Autopac ratepayers had received their rebate checks through the mail where they got an average of $420.
Just a couple of weeks ago, MPI had announced that it would seek regulatory approval to pay up another $16 million to these ratepayers as they claimed that they had been shortchanged after having received partial or no rebates at all.
McLaren stated that the public insurer will now be able to assess the costs for the future since they have the data at present. This will also reduce the likelihood of Manitobans seeing another huge rebate check in their mail. At this point in time, there is no likelihood of seeing rebates in the next few years, stated McLaren.
The rates are likely to drop by next year because MPI has seen a dip in the number of injury claims since the last few years. This reduction in injuries could also be due to the fact that the mature drivers are being more cautious and taking extra precautions while they are on the roads. It could also be due to the standard safety components such as air bags.
However, the rates for mopeds are likely to see an increase, stated McLaren. The increase would be from $204 to $249. Some years ago, McLaren had stated that there were just 80 moped users but now the figures have gone up to a few thousands in this province.
