Drivers may have to dig a little deeper to pay for car insurance. The Public Utilities Board is contemplating that right now.
It's holding a hearing for MPI's 2018 general rate application, one that requests an increase. It's applied for a 2.7 per cent increase. MPI says if approved, it would cost the average driver an extra $29 dollars a year.
"Oh boy!" said driver Bruce Mckaughan. "How much more do we really need from me?" That's something the Manitoba Branch of the Consumers Association of Canada is concerned about as well. It hasn't said it is against the hike as yet? But it would like ensure actual and projected costs are necessary and prudent. And it wants to ensure the PUB sets a just and reasonable rate.
"If auto insurance goes up for businesses, and so the transportation of goods costs more to the company, well that gets passed on to consumers," said Gloria Desorcy. "So we don't just pay for our own vehicles."
Good drivers with merits on their records get a discount from MPI. Poor drivers with demerits pay more. And MPI is looking to increase that amount even further.
"For example, a driver who's at the bottom end of the scale, who would be paying a driver premium of $2500 for their drivers license," said Brian Smiley from Manitoba Public Insurance. "If this is approved going forward they will pay $3000."
MPI believes charging bad drivers more will discourage high risk behavior behind the wheel, like speeding, texting and impaired driving.
The rate application hearing is expected to go through to the 20th of October.
Ratepayers are welcome to attend, or send written submissions. If the increase is approved, the rates would take effect on March 1st, 2018.
