The Reminder is making its archives back to 2003 available on our website. Please note that, due to technical limitations, archive articles are presented without the usual formatting.
In the first general rate increase in six years, Manitoba motorists will pay 3.7 per cent more on average this year for auto insurance, at a time when motorists in other provinces face double-digit increases. The new rates, which take effect March 1, add about $30 to the premium for the average family passenger vehicle. Staggered renewal dates mean some vehicle owners will not pay the new rates until February 2005. "Compared with other jurisdictions, Manitoba continues to offer the best auto insurance value in Canada," said President and Chief Executive Officer Jack Zacharias. "While we're proud to have kept the increase to a marginal level, we are nonetheless concerned about the rising volume and cost of claims that obliged us to raise rates. "We have worked hard over time to keep our costs down, and this 3.7 per cent increase certainly compares well to the average 22 per cent increase across Canada in 2003." While the corporation's overall premium revenue jumps 3.7 per cent, the amount a vehicle owner pays for insurance depends on the make and model of the vehicle, how and where it is driven, and the owner's individual driving record. Rates for family passenger vehicles increase 4.2 per cent while trailer and off-road vehicle owners gain from reductions of more than 30 per cent. Motorcycle rates are rising an average of 15 per cent, reflecting ongoing high claims costs and a 20 per cent rate cap. Under the new rates, nearly a third of vehicle owners (263,797) see their premiums decrease or stay the same in 2004. Overall: 32 per cent of premiums go down (260,168 vehicles) (56 per cent Ð 145,943 vehicles Ð decrease by $20 or less) Less than one per cent of premiums remain unchanged (3,629 vehicles) 68 per cent of premiums increase (554,814 vehicles) (19 per cent Ð 105,351 vehicles Ð increase by $20 or less) There are no changes to Basic Autopac coverage or benefits in 2004/05. Manitoba Public Insurance has cautioned vehicle owners for more than a year that rising claims costs were challenging the corporation's ability to avoid rate increases, Zacharias said. "These rates remind us and our customers of the business reality that claims costs are continuing to rise, in Manitoba as elsewhere," Zacharias said. "The new rates respond to the trend, but Manitobans have an important role to play, too. "Every driver in the province can affect what they pay in auto insurance through their driving record and simple measures such as buckling seatbelts. Safety in your vehicle not only saves lives Ð it reduces insurance costs." Across Canada, auto insurance premiums increased on average 22 per cent in calendar 2003 from 2002, according to Statistics Canada. Manitoba's system has been heralded as a model for eliminating spiraling rates while maintaining broad coverage.
