MPI Asks PUB for 2% Rate Increase

MPI Asks PUB for 2% Rate Increase

Hail Damage
(Hail damage image via Shutterstock)

Manitoba Public Insurance is proposing a two percent rate hike for motorists due to an increase in comprehensive claims payouts.

The public auto insurer will ask the Public Utilities Board for the increase for basic Autopac rates, which would end up costing the average passenger vehicle owner about $17 more in premium.

“Hail claims were the big driver in this increase, coming in $50 million over our projected forecast,” said Dan Guimond, MPI president and CEO.

“Last year’s payout for comprehensive was $125 million, compared to the previous five-year average of $74 million.”

Guimond said MPI experienced an unprecedented 68 percent increase in comprehensive costs for approximately 13,000 hail claims last year, compared to about 4,000 in 2014.

If approved, a total of 674,894 vehicles (excluding trailers and off-road vehicles) will receive a premium increase — 83 percent of these vehicles (558,561 vehicles) will increase by $40 or less.

The average premium for the private passenger vehicle class will be $1,018.