Manitoba auto insurance rates to drop by an average of 8.8% next year

Manitoba drivers will seetheir auto insurancepremiums drop by an average of 8.8 per cent next year.

The Public Utilities Board (PUB) on Wednesday approved MPI'srequest, which averages out to a savings of more than $100.

The rate cutwill take effect beginning next year on April 1.

MPI has previously said it candeliversavings because the Crown corporation met its capital target the minimum amount the company should hold in reserveto protect against market volatility.

Former CEO Ben Graham also credited overall fiscal prudence and clamping down on fraudfor contributing to theadditional savings.

The corporation has been turning over more money to ratepayers this year. MPIhas received approval fromPUB for a second round of rebates due to the plummeting number of claims during the coronavirus pandemic.

It plans to dish out an average of $100 per customer in the next couple weeks, after issuing an average of $140 to $160 a few monthsinto the pandemic.

20% rate hike for vehicle-for-hire drivers

Some customers will see an increase in their rates, however.

Driversinsured under the passenger vehicle for hireclass will face a 20 per cent increase in their rates for 2021-22 and a subsequent 20 per cent increase for each of the following two years.

The board ruled that insurance rates for these vehicles are heavilysubsidized already, which is a "patent unfairness" to taxi drivers.

MPI was originally planning an average rate cut of 10.5 per cent, but they downgraded their expectations before the PUB hearing started in October.