MPI made an announcement recently that it's seeking to raise insurance premiums. Spokesperson Brian Smiley explains.

"The rate increase is 2.2 percent if it's approved by the Public Utilities Board (PUB)," says Smiley. "It would take effect in the 2019/2020 insurance year. It's important to note that the 2.2 percent is basically broken into two parts. The 2.1 is going to be used to maintain our Rate Stabilization Reserve."

He notes the 2.1 percent increase prevents rate shock from their customers due to storms and the increases they can cause. The other .1 percent goes into the basic Autopac program.

"If approved, the average vehicle owner is going to pay about $27 more in premiums, or $2.25 per month," Smiley continues. "It's certainly modest. Just very recently just last week we had a hail storm go through the southern part of our province. And this hail storm could result in multi-million dollars worth of damages that we have to pay to repair vehicles."

Smiley adds one hailstorm can make a dent into the rate stabilization reserve. The increase is intended to maintain that reserve. 2.1 percent will see $21-million will be put in the reserve.

He notes there are several major use categories. Private passenger vehicles will see a 2.4 percent rate increase. Trailers and offroad vehicles will see reductions of -4 or -20 respectively. He notes overall it will be 2.2 upon approval. The hearings with PUB start in September. Their ruling is usually issued in December of this year. Smiley notes MPI went to great lengths to ensure the increase is modest, acknowledging that most people don't like any increases whatsoever, but he points out that double digit increases took place in private auto jurisdictions across Canada. He adds MPI cut costs in many areas to lower their expenses by about $6-million last year, which contributed to the modest increase figures.