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A
new auto insurance year began last
weekend, signaling the fifth straight
year that Manitoba Public Insurance
has held the line on Autopac rates.
The
insurance year that began March
1, 2003 represents the third time
in five years that auto insurance
rates in Manitoba have been reduced.
In December 2002, the Public Utilities
Board (PUB) ordered a one per cent
reduction in Basic Autopac premium
revenue.
About
half of Manitoba vehicle owners
will pay the same or less for insurance
while the rest will see small increases.
The average premium in 2003/04 drops
$6 to $581.
“Manitoba
Public Insurance has not increased
Basic Autopac rates since 1999,”
President and Chief Executive Officer
Jack Zacharias said. “More
specifically, we have reduced auto
rates three times and provided vehicle
owners with an $81 million dividend.
And we have done this during a period
when insurance rates across Canada
have risen, on average, between
13 and 16 per cent.”
Zacharias
warned, however, that the trend
in the current year of increasing
claims costs suggests maintaining
stable rates will become more of
a challenge in the long term. In
the first three quarters of fiscal
2002, the number of collision claims
made by Manitobans increased by
more than 6,000 over the previous
year, driving up collision claims
costs by $17.6 million to $140 million.
In
2003, 390,549 vehicle owners in
Manitoba will pay less for insurance,
with most getting a $20 to $80 reduction.
Another 25,761 vehicle-owners will
pay the same rate as they are this
year. The remainder, about 394,713
vehicles, will see increases mainly
under $50.
The
PUB also approved a flat $40 annual
discount for vehicle owners who
have an aftermarket anti-theft device
that meets the national standard.
This change, also effective March
1, 2003, will result in most owners
being eligible for a larger discount
than under the previous program.
The new rates took effect March
1, 2003 but, because of staggered
renewal dates, some vehicle owners
will not pay the new rates until
February 2004. As happens every
year, individual premiums are affected
by the make and model of the vehicle,
how and where it is driven, and
the owner’s driving record.
Contact:
Brian Smiley/Twila Allen
Media Relations
Manitoba Public Insurance
(204) 985-7300 or 1-888-554-9549
(toll-free in Manitoba) |
