Manitoba drivers to get more money back as utilities board OKs $312M rebate, rate decrease

Manitoba drivers will once again get a rebate from Manitoba Public Insurance — the third such rebate since the start of the COVID-19 pandemic.

The Public Utilities Board issued its decision on MPI's 2022-23 general rate application on Wednesday.

It approved a 1.57 per cent rate decrease for policyholders, as well as a rebate of approximately $312 million, MPI said in a news release.

The rebate is primarily due to a drop in the number of claims during the pandemic period, the Public Utilities Board said in a separate news release.

MPI also announced rebates in April 2020 and November 2020.

Policyholders can expect to receive a rebate cheque in early February 2022, MPI says.

The rate decrease means the average passenger vehicle owner will pay about $16 less in premiums per year, the public insurer says.

The drop marks the third consecutive year Manitobans have received a rate decrease.

The approved rates will come into effect April 1, 2022, but since renewal dates are staggered, some vehicle owners will not pay their new rates until March 31, 2023.

The utilities board also approved changes to MPI's driver safety rating system, which includes expanding the top of the scale from +15 to +16 in 2022-23. 

It's the first step in a multi-year plan to gradually introduce higher safety-rating levels to allow the safest drivers to see greater benefits, MPI says.

The Crown corporation expects almost 95 per cent of drivers with the current highest rating will move up and get a 37 per cent discount on their premiums, compared to the current maximum of 33 per cent.

Driver's licence premiums will remain at $15 for those at the highest safety ratings.