August 27, 2009

Manitobans continue to pay less as Manitoba Public Insurance gears up to introduce major changes to Autopac rating and renewal processes
Continued decline in auto theft contributes to keeping rates stable

For the 11th year in 12, Manitoba Public Insurance filed a rate application that holds the line on Basic Autopac rates ─ helped in large part by continued declines in auto theft.

In its application to the Public Utilities Board (PUB) filed in June, the corporation is requesting no overall increase in revenue for Basic Autopac rates, beginning March 1, 2010. PUB hearings into the corporation’s rate application begin in early October.

Also beginning March 1, 2010 is the new Driver Safety Rating system, a new multi-year Autopac renewal system and new higher tech one-part driver’s licences.

In April, during the PUB hearings into the DSR rates, the corporation suggested starting these new programs as early as February 1, 2010. But PUB recommended a March 1 start date given the advantages of aligning the changes with the historical March 1 starting date for new Autopac rates.

The new one-part driver’s licence will be made of sophisticated tamper-proof materials and will utilize facial recognition software on the digital photographic images to help protect Manitobans against identity theft. For an additional fee and separate application process, Manitobans will be able to request an “enhanced” version of the one-part licence to serve as an approved travel document for entering the US by land or water.

The streamlined renewal plan and one-part driver’s licences also represent important improvements by introducing more convenience for customers. The new program will mean that drivers and vehicle owners will be required to visit their broker when they have coverage or classification changes, or once every five years, an improvement over today’s requirement for annual visits.

This new merit/demerit system (the Driver Safety Rating system) was designed to provide stronger rewards and incentives for safer driving and was introduced to Manitobans during public consultations last fall. Manitoba Public Insurance sought public feedback on the new Driver Safety Rating in September 2008, after first doing preliminary research on the basic underlying concepts. Manitobans were invited to learn about the model by reading a discussion paper, viewing online material and talking with company representatives at shopping mall displays. They were then encouraged to express their views by way of written submissions and an online survey.

The corporation estimates that more than 1,000 people stopped at the mall displays, and hundreds completed the survey or submitted written comments. More than 90 per cent of the feedback was supportive of the new model, which uses one integrated up-and-down scale to show how much risk a driver brings into the insurance pool, and how much premium the driver should pay as a result.

Manitobans renewing their driver’s licences and Autopac insurance on or after March 1, 2010 will receive the benefits of these new programs and processes. Those applying for new driver’s licences on or after January 15, 2010 will receive the new one-part versions.

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