MPI rates rising; cars up motorcycles down

It will cost more to insure some vehicles next year thanks to financial losses at Manitoba Public Insurance.

The Public Utilities Board approved an overall rate increase of 3.4% for the 2015/16 insurance year.The increase takes effect March 1. This is the third rate increase in the past 15 years.

The PUB release said what you actually pay will be based on your driving record, the kind of vehicle you drive, what you use your vehicle for and where you live in Manitoba.The reason for the rate increase is combined losses in 2012/13 and 2013/14 totalling $132.2 million.

MPIspokesperson,Brian Smiley,said there were almost 57,000 claims last winter which was significantly higher than the winter before.

"We also saw an increase in the cost of repairing those vehicles, so that also has an impact on our overall rate increase," said Smiley.

MPI has projected a net loss of $82.5 million for the current financial year.These losses will cause MPIs Rate Stabilization Reserve (RSR) balance to fall to approximately$17.4 million - below the Board's previously approved range of $82.4 - $164.3 million, the PUB release said.

The RSR protects drivers rate increases. MPI will transfer more than $100 million from its unregulated lines of business to help rebuild Basic reserves.

Each major vehicle class will receive the following average vehicle premium changes:

• Private Passenger + 3.7%
• Commercial - 1.8%
• Public + 6.2%
• Motorcycle - 5.8%
• Trailers + 6.1%
• Off-road vehicles - 14.3%
• Total + 3.4%

Smiley said the decrease for motorcycle ownersis due to a number of factors.

"That's as a result of how costs are reflected in bodily injury and collisions, so all those factors come in to play."