Motorists in Manitoba should be pleased with Manitoba Public Insurance's (MPI) 2016 rates. Recently the Public Utilities Board approved (PUB) MPI's application to see a zero percent overall general rate increase for basic compulsory motor vehicle premiums.

"Manitoba Public Insurance applied for a zero overall rate decrease/increase, so zero. There was hearings, that were held in September. The Public Utilities Board then took that information and reviewed it. Just this week they ruled in favour of the zero percent rate application," explained MPI Spokesperson Brian Smiley when asked about the process behind these new rates.

Smiley noted this is good news for rate payers. He stated roughly 500,000 vehicles will see a slight decrease, while 60,000 will see no effect on their premiums.

A zero percent overall general rate increase doesn't mean that rates for all motorists within each major class will remain unchanged. Based on MPI's rate design, major vehicle classes will be impacted as follows;

- Private Passenger, -0.1 percent change
- Commercial, +2.5 percent change
- Public (taxi), +6.3 percent change
- Motorcycle, -7.6 percent change
- Trailers, -3.8 percent change
- Off-road Vehicles, 0.0 percent change
- Overall, 0.0 percent change

According to Smiley the Commercial and Public (taxi) categories will be increasing due to an increase in collisions.

"For every $1.00 we collect on premium, we pay out nearly a $1.15 in costs. You can see that we would have to raise their rates to bring them up to a level playing field," Smiley outlined when asked why these two categories experienced an increase.

Meanwhile, regarding the categories which are decreasing and or staying status kuo Smiley explained there are fewer accidents occurring. He stated that Motorcycle accidents have been on the decline for the past four years.

These changes will come into effect March 1st, 2016, and will be reviewed again year after year by MPI and PUB.