There will be a 1.7% MPI premium increase next year. The average vehicle owner will pay about $17 more in premium.
The main reason for the increase are hail claisms. Hail claims were $50 million over MPI’s projected forecast. There were approximately 13,000 hail claims opened last year, compared to about 4,000 in 2014.
“The Corporation experienced an unprecedented 68 per cent increase in comprehensive claims costs,” Dan Guimond, president and chief executive officer of Manitoba Public Insurance said.
“Hail claims were the big driver in this increase, coming in $50 million over our projected forecast. Last year’s payout for comprehensive was $125 million, compared to the previous five-year average of $74 million.”
If approved, a total of 674,894 vehicles will receive a premium increase. 83 per cent of those vehicles (558,561 vehicles) will increase by $40 or less.
The average premium for the private passenger vehicle class will be $1,018.
Motor Cycle Rates Decrease:
MPI has requested a 1.7 per cent decrease to motorcycle rates. The rates for 77 per cent of motorcycles will decrease or remain the same. In total, 11,699 motorcycle owners will receive a decrease in their premiums.
Mopeds and small-engine displacement motor scooters (2,553units) rates will increase an average of $9 to $313 per year, up from $304.
“Over the last five years, motorcycle rates have decreased overall by 19.8 per cent,” said Guimond. “The Corporation works very closely with the Coalition of Manitoba Motorcycle Groups on topics relating to both safety and rates, and this collaboration is making a positive difference for all motorcyclists in our province.”