Manitobans will see a slight increase in what they pay for car insurance coming this spring.
While Manitoba Public Insurance (MPI) rates will technically be decreasing by 3.8 percent on April 1st, the Public Utilities Board (PUB) has also approved the removal of a five percent Capital Release from this year.
The Capital Release is determined every year, and is based on the state of the MPI Capital Reserve fund, which they say helps maintain rate stability and reduce the number of increases.
After the removal of the Capital Release, the average Manitoban driver will be paying 1.54 percent more, although the change will ultimately be determined by a number of factors, including driving record and type of vehicle.
MPI was originally seeking a 0.9 percent decrease, then changed the request to 0.05 percent this fall, rather than the 3.8 percent decrease the PUB granted.
If the 0.05 percent decrease was approved, Manitobans would've seen an average rate increase of 5.54 percent after the removal of the Capital Release.
