Summary

• This is the seventh time in eight years (since 1999) that Manitoba auto insurance rates have declined or remained the same. About 58 per cent of vehicle owners will see their premiums decrease, while 38 per cent will experience an increase.
  • The average premium paid by owners of family passenger vehicles will decrease $4 to $ 797.
  • Trailer and off-road vehicle owners will see average reductions of 4.9 and 20 per cent respectively.
  • Motorcycle rates continue to be insufficient to cover their claims costs, but this year they are starting to close the gap. Rates will increase an average of 12.7 per cent.
• Manitobans continue to pay premiums that are among the lowest in the country.
• There are no changes to basic Autopac coverages or benefits.
• What you pay continues to be primarily influenced by your individual claims experience and driving record, and the vehicle you drive.

FAQs

General Application

Is Manitoba Public Insurance seeking any change in basic Autopac rates for the 2006/07 insurance year?

In its rate application to the Public Utilities Board announced June 24, 2005, Manitoba Public Insurance requested no change in its overall premium revenue.

Does this mean everyone’s rate will stay the same?

No. Some premiums will increase, some will stay the same and some will decrease, just as they do every year, based on claims experience. About 58 per cent of vehicle owners will see their premiums decrease, 38 per cent will rise and four per cent will remain the same.

How will this rate application affect the various territories?

Territory rates are determined by the cost of the claims filed in that area. Claim costs can be affected by such things as body shop repair rates, the number of claims filed and the types of injuries reported.

On a territorial basis, the impacts of rate adjustments are:

• Territory 1 (Winnipeg) $700,000 more in premium paid (–0.2%)
• Territory 2 (Southern Manitoba) $1.3 million less (-0.7%)
• Territory 3 (Northern Manitoba) $200,000 more (1.9%)
• Territory 4 (Central Manitoba) $1.3 million more (8.9%)
• Territory 5 (Winnipeg Commuters) $700,000 less (-2.3%)

When would the new rates take effect?

The proposed rates would take effect March 1, 2006. Because of staggered renewal dates, some vehicle owners may not pay the new rates until February 2007.

Which types of vehicles will be affected by rate changes?

The detailed requested percentage change by vehicle class is as follows:

• Private Passenger Vehicles    -0.5 per cent
• Commercial                          9.2 per cent
• Public                                 0.7 per cent
• Motorcycles                        12.7 per cent
• Trailers                              -4.9 per cent
• Off Road Vehicles                -20.0 per cent
  
• Overall                                     0.0 per cent

Driver experience will continue to have a substantial influence over what individuals pay for insurance. We strive to ensure every Manitoba vehicle owner pays their fair share of auto insurance rates. That means vehicle groups that cost more in claims face higher premiums.

Why are premiums still going up for motorcycles?

Because claims costs for these vehicles are still rising. In fact, we might have raised motorcycle rates by about 18 per cent except that the PUB asked us to limit the change to any particular major vehicle class to 20 per cent. Because one class (off-road vehicles) was indicated to decrease by 40 per cent (which needed to be reduced to a 20 per cent drop), we have requested a 12.7 per cent increase for motorcycles.

Manitobans continue to tell us that they don’t want to subsidize high-risk, high-claims vehicle categories. We are committed to eliminating the cross-subsidization of motorcycles by other vehicle categories.

Are we continuing to work with groups like motorcyclists to improve the situation?

Yes. Manitoba Public Insurance has taken several steps to help mitigate premium changes related to motorcycles and to encourage safety on the roads for both riders and drivers. For example:

• The corporation adopted “seasonal” rating in 2000 to improve service to motorcycle riders by reducing their initial cash outlay and remove the necessity for policy cancellation and refund at the end of the riding season. This type of rating acknowledges that the riding season in Manitoba is generally limited.
• In 2001, Manitoba Public Insurance adjusted its rating categories to accommodate different motorcycle types.
• For the fifth year in a row, MPI funding is making it possible for the Manitoba Safety Council to provide a $100 rebate to successful graduates of its motorcycle operator training course.
• The corporation also supports the CMMG’s annual Ride for Safety during Motorcycle Safety Month.
• MPI funds several public awareness initiatives including safety advertising directed at riders and drivers of other vehicles, a safety visibility message targeted to all riders and a variety of media relations activities.

Are there any changes to basic Autopac coverages or benefits?

No. The rate application assumes no changes to basic Autopac coverages or benefits, other than the indexation of PIPP benefits.

What’s the average basic premium in Manitoba?

The average premium for a private passenger vehicle in 2005 will decrease by about $4 to $797.

So what does this mean overall?

This rate application ensures Manitobans will continue to pay among the lowest auto insurance rates in Canada.

In provinces with private auto insurance, many drivers have seen double-digit increases in their rates. By contrast, Manitoba has reduced or maintained rates for seven out of eight consecutive years.

Manitobans enjoy comprehensive, universal insurance coverage. That insurance is available to everyone with a valid driver’s licence – no eligible driver is denied. Manitobans also enjoy superior service that is extremely accessible. We ensure that the quality of our repairs meets the highest standards.

In addition, our rating methodology allows customers a large amount of choice in what they pay for their auto insurance – in terms of coverage options, the vehicle they choose to drive and, of course, their own driving record.

What about optional extension Autopac premiums and coverages?

Manitoba Public Insurance competes with private sector insurers for optional extension coverage such as reduced deductibles and higher third-party liability levels. These rates are not subject to PUB approval. Any revisions to these coverages and premiums would be outlined prior to their taking effect March 1, 2006.