Toronto, Ontario -- The Manitoba government introduces new legislation aimed at keeping vehicle insurance rates stable as costs rise across the country.
The Manitoba Public Insurance Amendment Act (2), announced October 6, would give regulators more authority over Manitoba Public Insurance’s financial reserves and require the Crown corporation to return excess funds to drivers when surpluses exceed established limits.
The proposed law also formalizes Manitoba’s registered owner model, under which basic coverage is tied to vehicle ownership rather than individual drivers. Officials say the change is meant to protect motorists from sudden or unjustified premium hikes while ensuring MPI remains financially stable.
MPI, which has provided compulsory basic auto insurance in Manitoba since 1971, is a non-profit public insurer that covers nearly every driver in the province. Rates are set annually by the Public Utilities Board based on actuarial reviews.
In 2025, the board approved a 5.7 percent rate increase, amounting to roughly $50 for the average passenger vehicle. MPI’s 2026–27 application proposes a further three percent adjustment, along with an increase to the basic deductible from $750 to $1,000 and an expansion of its Driver Safety Rating program, which rewards motorists with clean records.
Across Canada, auto insurance systems vary sharply by province. Manitoba, Saskatchewan and British Columbia operate public systems, while Quebec uses a hybrid model that combines public no-fault coverage for injuries with private coverage for property damage. Ontario, Alberta and the Atlantic provinces rely on fully private insurers under provincial regulation.
Advocates of public insurance say these systems provide universal access and greater transparency, while critics argue they limit consumer choice and sometimes mask regional cross-subsidies.
Studies comparing premiums across provinces have produced mixed results, with differences often driven by claim limits, benefit design and repair costs rather than whether the system is public or private.
