'Long overdue' changes coming to MPI as basic deductibles, 3rd-party liability limits go up

Higher deductibles are comingfor Manitoba drivers who have basic Autopac coverage.

Manitoba Public Insurance announced Tuesday it is planning a suite of changes that will come into effect when people go to get their vehicles insured next year.

The basic deductible people pay for claims will be going up by 50 per cent, to $750 from the current $500.

For those willing to pay higher premiums, MPI is also raising the lowest-possible deductible level to $200 from the current $100.

In exchange for higher deductibles, the public insurer is also offering enhanced coverage, as the third-party liability limit will alsobe going up, to $500,000from the current $200,000.

According to the head of MPI, the changes are "long overdue" and shouldn't affect the rates Manitobans pay for their auto insurance.

"We haven't updated these products in a while, but we're also very well aware that sometimes customers like the products that they currently have," said Ben Graham, president and CEO of the Crown corporation.

"Sowe are making some changes to the basic product, but we are making some changes to our extension products which allow customers to maintain the same level of coverage they have today for the same amount of cost."

Graham saidthe third-party liabilitylimithas not changed since 1983.

In a news release announcing the changes Tuesday, MPIalso said the maximum insured value on any car, truck, motorcycle, moped and other private vehiclewill increase to $70,000 from the current $50,000, to better reflect the higher value of vehicles and cost of repairs.

Graham said the changes were made to bring MPI in line with insurers in other provinces.

The planhasbeen given the green light to go intoeffect as ofApril 2021.

The premiums MPI plans to charge on top of the basic deductible still need to go through the Public Utility Board'sapproval process.

If approved, the proposed rates will go into effect on April 1.

Registration fees to be cut by $15/year

Also on Tuesday, the province announced a 10-per-cent reduction in vehicle registration fees, starting on July 1.

In a news release, Crown Services Minister Jeff Wharton said most drivers will end up paying $139, instead of the current $154, to register their vehicles each year.

The $11-million program applies to non-commercial vehicles such aspassenger cars, sport utility cars, light trucks, farm vehicles, motorcycles and mopeds, and trailers and other trucks for personal use.