Topic: Insurance Fundamentals

We believe in doing what’s right – which includes being open and transparent with you about what you are paying for when you insure your vehicle.

More information for customers

To be more accountable to you, we have introduced graphics on the front of our annual statements of account and renewal notices that feature a full breakdown of where your premium dollars go for both Basic and Optional Autopac, based on an average passenger vehicle policy.

Below is the information customers will receive:

You can find more details about this graphic below. Please note that all figures are rounded to the nearest one per cent for ease of reading.

Basic Autopac

There are three areas your Basic Autopac insurance premiums contribute to: damage claims, injury claims and expenses.

Damage claims

Damage claims pay costs to customers arising from collision, comprehensive (vandalism, theft, hail, etc.), and third-party liability claims (coverage for claims others may make against you).

Injury claims

The injury claims section represents payments related to Personal Injury Protection Plan (PIPP) claims. PIPP guarantees that any Manitoban injured in an automobile collision anywhere in Canada or the U.S. receives comprehensive and world-class injury and economic loss coverage. Learn more.

Expenses

Running a business, including public auto insurance, includes expenses. To ensure that we are able to continue to deliver exceptional coverage and service, affordable rates and safer roads to you, our expenses include:

Operating expenses: This includes all of the expenses related to processing your claims. It also covers all non-claims related expenses, such as employee compensation, regulatory, and reinsurance costs. Note that operating expenses are net of any services fees collected (such as late payment fees, financing fees, etc.)

Commissions: Brokers receive a commission from MPI when performing transactions on MPI products and services.

Premium taxes: A three per cent provincial tax is charged on all premiums.

Road safety: As a key part of our mission, we are committed to increasing public awareness about risky driving behaviours and to providing more opportunities for Manitobans to enhance their driving skills. We do this through supporting community-based programming with our stakeholders and partners that promotes road safety awareness and education, developing and managing awareness and education initiatives as well as conducting research and analysis to better understand road safety issues. Learn more.

One factor affecting your premium is your vehicle’s year, make and model. Some vehicles withstand collisions better than others. Vehicle characteristics (such as engine size), passenger protection features (such as air bags) and repair costs affect your premiums.

Cars, light trucks and vans

We use the Canadian Loss Experience Automobile Rating (CLEAR) system, developed by the Vehicle Information Centre of Canada (VICC), to group cars, light trucks and vans. The VICC collects Canada-wide information about vehicles involved in accidents and the cost of claims from these accidents. Cars and vans with similar claim costs and claim risks go into the same rating groups. In all, there are 41 rating groups for cars and light trucks – the higher the rating group, the higher the premium.

CLEAR also gives more favourable ratings to vehicles with factory-installed anti-theft devices that meet the Canadian Theft Deterrent Standard. To meet federal law, any vehicle manufactured after September 1, 2007 must have an approved electronic immobilizer to be sold in or imported into Canada. If you own any 2008 or newer model vehicle, we discount your premium automatically.

Under the CLEAR rating system, a lower value (or older) car may be rated similarly to a higher-value (or newer) car. Here’s why: the lower value car may have fewer safety features and loss-prevention features. Therefore, it may have a poorer claim record than a car that’s worth more.

CLEAR matches your rate with your vehicle’s risk – which changes over time. Vehicles that are less safe and more expensive to fix, cost more to insure. On the other hand, vehicles that are safer and cheaper to fix cost less to insure.

To ensure your premium is correct, we need to identify your vehicle accurately. We do so using the Vehicle Identification Number (VIN) for your vehicle, sometimes called the serial number.

Motorcycles

We rank the risk of motorcycles based on engine size and declared value. Motorcycles are also categorized by type. The categories are: sport, touring, sport touring, motorscooter and other. Premiums for sport bikes are higher than other categories because they have a higher claims risk.

As with other vehicles, motorcycle coverage is year round. However, unlike premiums for cars and trucks, motorcycle premiums are priced over the typical riding season from May 1 to September 30. That means you don’t need to pay your premiums until May 1, and you only pay during the riding season, even though your coverage stays in force all year (unless it expires).

Mopeds

You must meet special requirements to register and insure in the “moped” category.

A moped must:

  • have wheels with a diameter of 250 mm (10 inches) or larger
  • have a maximum speed of 50 km/h or less
  • have an engine displacement of 50 cc or less
  • not carry passengers
  • not operate on a provincial trunk highway if the speed limit is more than 80 km/hr unless crossing at an intersection in the most direct route

Mopeds can have two tandem wheels or three wheels. It can be driven by pedals, a motor, or both. A motorscooter can also be a moped if it meets the special requirements for the moped category. To ensure your motorscooter is insured properly, ask your Autopac agent.

Motor homes, heavy trucks and buses

We set rates for motor homes based on their declared value. Declaring the value of your motor home means we set the premium based on how much you tell us your motor home is worth. For heavy trucks, we use the model, year and gross vehicle weight. For buses, the rate depends on the declared value and the number of passengers it can seat.

In all cases, declared values include provincial sales tax and GST.

Trailers

This category includes utility, house, cabin or tent trailers used for pleasure, business, u-drive or farm purposes. You must declare the value of your trailer when you register it. A trailer vehicle type includes a body style for cabin or house trailers, which includes (but is not limited to) travel trailers and fifth wheels. Trailers fall into two value categories:

  • trailers with a declared value of $2,500 or less
  • trailers with a declared value of $2,501 or more

To be eligible for Autopac coverage, a trailer must be mobile and capable of being towed out by the owner within 24 hours without significant modification or cost. Trailers that have been converted into a seasonal or permanent residence or structure are not eligible for Autopac coverage. Conversions can include wheels that are permanently removed, permanent utility connections or permanent add-on decking, skirting or blocking. However, if these modifications are temporary and the trailer is not permanently mounted on a foundation, you may still be eligible for Autopac coverage.

Agricultural equipment (such as a farm trailer) doesn’t need licence plates when transporting farm produce and is towed by agricultural equipment (such as a farm tractor). However, it requires plates when a licenced car or truck is towing it. Autopac options are available for trailers with a value of more than $70,000.

The Drivers and Vehicles Act does not allow the registration of trailers that exceed 2.6 m (102 inches) in width, 12.5 m (41 feet) in length, or 4.15 m (13 feet, 6 inches) in height.

The insurance premium for a trailer valued at $2,500 or less is a flat annual amount, and no refunds are available if you cancel part way through the year. So, we recommend that you renew a trailer policy when you renew your other Autopac so that it’s registered and insured when you need it next.

Remember, the insurance premium stays the same no matter when you renew, and there are no refunds if you cancel.

We divide Manitoba into four territories. Your risk of a claim depends, in part, on which territory you live and drive in. Also, accidents may cost more in some parts of Manitoba than others because repairs may be more expensive.

Territory 1:

Winnipeg (including St. Norbert, Headingley, East and West St. Paul)

Territory 2:

All areas south of the 53rd parallel, except for Territory 1 (includes Brandon, Portage la Prairie, and Dauphin)

Territory 3:

All areas north of the 55th parallel (includes Thompson, Lynn Lake, and Churchill)

Territory 4:

The area north of the 53rd parallel and south of the 55th parallel (includes Flin Flon, The Pas and Grand Rapids)

Commuters

A commuter is a person who lives in Territory 2 and drives into Territory 1 (Winnipeg) to go to or from (or part way to or from) school or work. You must insure as a commuter if you live in Territory 2 and drive into Territory 1 to go to school or work, more than four days a month. For example, a student who lives in Territory 2 but travels into Winnipeg twice a week to attend college must insure as a commuter.

When you move

The law says that your vehicle registration and driver’s licence must show your new address no later than 15 days after you move. If you move from one territory to another and don’t notify us, we may refuse your claim. Ask your Autopac agent to complete an address change for you immediately after you move.

Territory map

How you use your vehicle affects your likelihood of having a claim. Therefore, it also affects your premium.

For instance, if you only drive to the grocery store and back, you’re less likely to have a claim than if you drive your car regularly as a courier.

Having the right insurance for how you use your vehicle is very important. With the wrong insurance, you may not be covered. The following vehicle use definitions will help you ensure that you have the correct type of insurance for the way that you use your vehicle.

Pleasure passenger vehicle

A pleasure passenger vehicle can’t be used for any business purposes. It can only be driven to or from – or part way to or from – work or school up to four days in one month, and not more than 1,609 km to or from work or school during an annual registration period. It can be used to drive dependants to and from school, without limits. Students can’t drive a vehicle to school regularly on pleasure use.

All-purpose passenger vehicle

An all-purpose passenger vehicle is used for pleasure driving and for driving to or from – or part way to or from – work or school, or for business purposes [excluding common carrier passenger vehicle (local)].

Common carrier passenger vehicle (local)

A common carrier passenger vehicle (local) is used by a courier or common carrier within a city or municipality, or for any other delivery purposes in connection with a business, trade or occupation, more than four days in one month or more than 1,609 km during an annual registration period.

Farm passenger vehicle

A farm passenger vehicle is one registered by a person who lives on a farm and who farms for not less than 720 cumulative hours in a registration period or is retired from farming. A retired farmer is not one who has quit farming and taken up another primary occupation. A farm passenger vehicle can only be driven to or from – or part way to or from – work or school or used for business purposes, other than farming, up to four days a month and not more than 1,609 km during an annual registration period. It can be used to drive dependent children to and from school, without limits.

Farming all-purpose truck

A farming all-purpose truck is a truck registered and insured by a person whose primary occupation is farming. It can also be a truck owned by a person, corporation or a group of persons who own, rent or lease land for the purpose of one or more of the following operations (which must be for the purpose of sale or marketing of a product) for at least three months or 720 hours a year:

  • growing crops or fodder
  • raising livestock or poultry
  • egg production
  • honey production
  • raising mink or fox
  • milk or cream production
  • operating a feed lot on which cattle are kept

A retired farmer, an employee of a farmer, or a person who owns land and leases it to others for the purpose of farming isn’t eligible for the farming/fishing truck insurance rates. Farming truck has three categories based on the truck’s weight.

A fishing all-purpose truck is used primarily for commercial fishing. Fishing truck insurance uses are divided into three categories according to vehicle weight.

Pleasure truck

A pleasure truck has a gross vehicle weight of 4,540 kg or less and can only be used for pleasure driving. A pleasure truck can only be driven to or from – or part way to or from – work or school up to four days a month and not more than 1,609 km a year. It can be used to transport dependants to and from school, without limits. It can’t be used for business purposes.

All-purpose truck

An all-purpose truck has a gross vehicle weight of 4,540 kg or less and is used for one of these purposes:

  • To go to or from, or part way to or from, work or school.
  • For business use, such as U-drive, but not for more than 1,609 km per year.
  • For artisan truck or other truck use, with one of these body styles: chassis mounted camper, crew cab, extended cab, light delivery, light pickup, panel, sport utility, crew cab service truck, extended cab service truck and service truck.

Motor homes

Motor homes are designed and built for driving and permanent living. Specifically, a motor home must have at least one bed and either:

  • a stove
  • a refrigerator
  • a sink and toilet

Any or all of these items, including the bed or beds, must be permanently installed. Motor homes also must have direct access between the driver’s seat and the living quarters.

  • A motor home can be insured in one of three categories:
  • A motor home in the pleasure category is used for pleasure driving. It can only be driven to or from – or part way to or from – work or school up to four days a month and not more than 1,609 km a year. It cannot be used for any business purpose.
  • An all-purpose motor home can be used for pleasure driving, for driving to or from – or part way to or from–work or school and for business purposes.
  • Motor homes can also be U-drives.

Motorcycles and mopeds

Motorcycles and mopeds can be insured in one of the following three categories:

  1. A motorcycle or moped in the pleasure category is used for pleasure driving. It can only be driven to or from – or part way to or from – work or school up to four days a month and not more than 1,609 km a year. It cannot be used for any business purpose.
  2. An all-purpose motorcycle or moped can be used for pleasure driving, for driving to or from – or part way to or from – work or school and for business purposes.
  3. Mopeds can also be u-drives.

Trailers

A trailer is a vehicle that is not self-propelled but is towed by a motor vehicle. It is designed for carrying goods. It includes a farm trailer, but does not include agricultural equipment. It must be mobile and capable of being towed on its own wheels by a motor vehicle. In the event of an emergency, a trailer must be able to be towed out by the owner within 24 hours without significant modification or cost.

A trailer vehicle type includes a body style for cabin or house trailers, which includes (but is not limited to) travel trailers and fifth wheels.

Drivers who maintain a safe driving record for a number of years get a discount on their Autopac premiums.

Premium discounts depend on your Driver Safety Rating.

Who qualifies

People registering passenger vehicles and light trucks, motorhomes, motorcycles and mopeds can qualify for a discount.

You can also qualify as the sole owner of a corporation, if you register the vehicle in your name rather than the corporation’s name. To do this, you’ll need a written agreement giving you “right of possession” of the car or light truck.

New or returning to Manitoba

If you are new or returning to Manitoba and have driving experience and claims experience from a reciprocal country, you may be eligible for a discount on your driver’s licence and insurance when you submit both documents. Your experience determines your placement on the Driver Safety Rating scale.

To prove your previous driving record, you need to bring both an original claims experience letter and driver abstract on letterhead. No photocopies, faxes, scans or photos are allowed. These documents must show concurrent driving history. No movement (maximum of +10) on the DSR scale is possible when only partial history is presented. Both documents must be submitted for review before processing.

Claims experience or claims histories are letters provided by insurance companies. The letter must contain:

  • Insurance company name and contact information.
  • Date of issue.
  • Name of policy holder(s) and policy number(s), and include the names of all drivers listed.
  • Effective and expiry date of the policy.
  • Details of any claims, or state clearly that there were no at-fault claims. Claims details should include date of loss, type of loss, percentage at-fault, and the name of the driver involved.

Driver abstracts or driver records are provided by government agencies responsible for driver licensing. The abstract must contain:

  • Name and contact information of the licensing authority.
  • Date of issue.
  • Driver’s name, date of birth, driver licence number, and class and/or stage of licence(s).
  • Current status of licence, showing date of issue and expiry.
  • Date first licenced.
  • Any licence restrictions.
  • Any convictions, suspensions or tickets.
  • Any accidents.
  • It must clearly state if there are no convictions, suspensions, traffic offences, or accidents.

What uses qualify

The following insurance uses are eligible for a premium discount:

  • Pleasure passenger vehicle
  • Pleasure truck
  • Farm passenger vehicle
  • Artisan truck, up to and including 16,330 kg
  • Farming all purpose truck up to and including 4,540 kg or a body style of chassis mounted camper, crew cab, crew cab service truck, extended cab, extended cab service truck, light delivery, light pickup, panel van, service truck, sport utility vehicle
  • Fishing all purpose truck up to and including 4,540 kg or a body style of chassis mounted camper, crew cab, crew cab service truck, extended cab, extended cab service truck, light delivery, light pickup, panel van, service truck, sport utility vehicle
  • Common carrier local passenger vehicle
  • Common carrier passenger vehicle within 161 km of Manitoba
  • Common carrier truck local within a city or municipality
  • Common carrier truck within 161 km of Manitoba
  • All purpose passenger vehicle
  • All purpose truck
  • Accessible vehicle-for-hire
  • Limousine vehicle-for-hire
  • Passenger vehicle-for-hire
  • Taxi vehicle-for-hire
  • All moped uses, except u-drive mopeds, and dealer mopeds
  • All motorhome uses, except u-drive motorhomes
  • All motorcycles uses, except antique motorcycles
  • Collector passenger vehicle
  • Collector truck

Major offences

Conviction of a major offence can have an impact on your driver safety rating. Use our Driver Safety Rating Calculator to see exactly how major offences affect your premium.

Major offences include:

  • careless driving
  • speeding (more than 49 km over the posted limit)
  • racing a motor vehicle
  • driving while disqualified
  • failing to report an accident
  • failing to stop at the scene of an accident
  • failing to leave particulars where damage was caused to an unattended vehicle
  • disobeying a police officer
  • criminal negligence
  • causing death by criminal negligence
  • causing bodily harm by criminal negligence
  • manslaughter
  • dangerous operation of a motor vehicle
  • dangerous operation of a motor vehicle causing bodily harm
  • dangerous operation of a motor vehicle causing death
  • operation of a motor vehicle while impaired by alcohol or a drug (including U.S. offences)
  • operation of a motor vehicle while impaired by alcohol or a drug and a person under the age of 16 years was a passenger (including U.S. offences)
  • driving with a blood alcohol concentration equal to or over .08% (including U.S. offences)
  • driving with a blood alcohol concentration equal to or over .08% causing bodily harm
  • driving with a blood alcohol concentration equal to or over .08% causing death
  • driving with a blood alcohol concentration equal to or over .08% and a person under the age of 16 years was a passenger (including U.S. offences)
  • refusing to provide a breath, saliva or blood sample (including U.S. offences)
  • refusing to provide a breath, saliva or blood sample and a person under the age of 16 years was a passenger (including U.S. offences)
  • driving with a blood drug concentration over 5 nanograms (ng) of THC
  • driving with a combined blood alcohol concentration over .05 and blood drug concentration over 2.5 ng of THC
  • impaired operation of a motor vehicle causing bodily harm (including U.S. offences)
  • impaired operation of a motor vehicle causing death (including U.S. offences)
  • theft
  • taking a vehicle without the owner’s consent
  • possession of goods obtained by crime
  • mischief
  • selling an automobile master key
  • arson
  • automobile vandalism
  • speeding in a construction zone (more than 49 km over the posted limit)

Buying back a claim

Depending on the circumstances, you may have the option to “buy back” your claim if you have a collision for which you were 50 per cent or more responsible. A buy back is like undoing your claim by reimbursing Manitoba Public Insurance for the percentage of the claim for which you were responsible.

For example, if you were 75 per cent responsible for the collision, you would reimburse Manitoba Public Insurance 75 per cent of the money we paid for repairing your vehicle, and other vehicles and property damaged in the collision, and for injuries resulting from the collision.

Buy backs are available for claims amounts of $5,000 or less. When a claim is bought back, the claim will not negatively affect your Driver Safety Rating, but it will appear on your Driver Abstract. The claim must have occurred in the past five years. When you buy back a claim from a past year, we adjust your premium for your current policy year only. One buyback is allowed every five years.

People buy back their claims for reasons that include:

  • keeping their vehicle premium and driver’s licence premium discounts
  • avoiding additional driver’s licence premiums

Not all claims can be bought back. To buy back a claim or to see if your claim is eligible, contact your adjuster.

Insurance spreads the cost of claims among many people so no one has to face the cost of a claim alone. For one person, the costs from an accident could cause bankruptcy. Spread among many people, the costs become affordable.

All auto insurance plans, including Autopac, group you with others, all of whom share three factors that make up your overall risk of claims. You’re grouped with others who live in a similar area, own similar vehicles and use their vehicles like you do. The money collected from your group covers you if you have a claim. In exchange for that protection, you share your group’s costs through your premiums. In part, your premiums depend on how much your group has cost the insurance fund. An important part of your group’s costs are injury claims. To make sure each vehicle shares the injury costs from an accident fairly, we divide those costs equally among all the vehicles involved.

How your Autopac premium is set

Your rates are determined based on a combination of the following four objective, risk-based factors:

  1. Your vehicle: Your insurance costs are determined in part by the claims costs associated with the year, make and model of the vehicle you drive. Claim costs may be lower for a car that has more safety and loss prevention features.
  2. Where you live: Manitoba is divided into four territories for vehicle rating purposes. Each geographic region is identified with varying degrees of risk. The lower the risk, the lower your insurance rates.
  3. What you use your vehicle for: Insurance rates differ depending on what you use your vehicle for. That’s because what you use your vehicle for affects how likely you are to have a claim. For instance, if you only drive to the grocery store and back (pleasure use), you’re less likely to have a claim than if you drive your car regularly as a courier.
  4. Your driving record: If you drive safely – with no at-fault claims, traffic convictions or drug or alcohol-related administrative suspensions – you save money on your insurance. On the other hand, if you drive unsafely, you pay more.

Manitoba Public Insurance is the one-stop source of insurance, registration and licensing in Manitoba. If you are new to Manitoba, you should follow the steps listed below if you wish to register and insure vehicles in Manitoba.

1. Get a claim history letter from your previous insurer. This letter may help you receive a premium discount based on your driving record.

2. Get your Manitoba driver’s licence before buying your Autopac insurance or you can’t qualify for a premium discount. You must get a Manitoba driver’s licence within three months of moving to Manitoba. Of course, if your driver’s licence from the place you left is about to expire, you must get a Manitoba licence right away. You need a valid driver’s licence to drive in Manitoba.

Young drivers who have moved to Manitoba need to know a few special rules. You can apply for a Class 5 Learner driver’s licence if you’re 15.5 years old and you’re enrolled in our Driver Z high school driver education course. If you’re not enrolled in this course, you’ll have to wait until you’re 16. Remember that with a Class 5 Learner Stage licence you can only drive with someone who has held a Class 5 Full Stage driver’s licence for at least three years.

3. If your vehicle doesn’t have a valid Certificate of Inspection (COI) proving it’s safe, get your vehicle inspected at an authorized inspection station. To register your vehicle here, it must have been awarded a “Passed” grade on the COI. It’s illegal to drive your vehicle here if it has failed the inspection.

4. If your vehicle has a valid COI from your former home, you may be able to use it to register your vehicle here. Contact us to find out if your COI is valid in Manitoba.

5. Buy your Autopac insurance. You have up to three months to transfer your current registration and insurance to Manitoba if:

  • it’s privately owned
  • it’s a passenger car or truck not used commercially

Otherwise, you must register here immediately. Also, if your registration and insurance from your former home expires or is cancelled within three months of moving to this province, you must register here immediately.

Please note: Eligible commercial vehicles registered in other western provinces may be operated in Manitoba with registration reciprocity for up to 90 days per calendar year.

To operate a vehicle on the roadway in Manitoba you must have a valid vehicle registration and Autopac insurance. Find information on registration, licence plates, vehicle inspections and buying or selling a vehicle on the Registration page.

Manitoba Public Insurance offers you a variety of automobile insurance options:

  • Autopac – Basic (required): Includes personal injury insurance, all-perils insurance and third-party liability insurance.
  • Autopac – Options: You can choose to enhance your Basic insurance by adding one of our many insurance options. Some of our most popular insurance options allow you to increase your third-party liability limits and reduce your deductibles. You can also purchase insurance for rental vehicles, new or lease vehicles, or Excess Value Coverage for high-end vehicles.
  • Commercial Coverage: Our Special Risk Extension (SRE) products provide insurance for specialized risks – things like large commercial trucking fleets and garage risks.

You can purchase your Autopac insurance through our province-wide network of more than 300 independent Autopac agents.

How insurance protects you

Insurance spreads the cost of claims among many people so no one has to face the cost of a claim alone. For one person, the costs from an accident could cause bankruptcy. Spread among many people, the costs become affordable.

Automobile insurance protects you in three broad categories:

  • Personal injury insurance (protection against personal bodily injury, loss of life or loss of income)
  • All-perils insurance (comprehensive protection against damage to your own vehicle as a result of an insured collision, vehicle upset or causes such as vandalism, theft, hail and fire)
  • Third-party liability insurance (protection against your obligation to pay if you’re legally liable for someone else’s injuries, death or damage to their property)

Short-term Autopac

Do you need Autopac insurance and vehicle registration for as short as 30 days or as long as 244 days?

If you own a motorhome or classic sports car that you use for only a few months at a time, short-term Autopac insurance and vehicle registration might be a good choice.

  • Your premium is based on the number of days in your policy, times your daily Autopac premium, plus five per cent of that amount.
  • A $15 application fee per policy applies (non-refundable).
  • Payment in full only.
  • No refunds are available for short-term policies issued for 30 days and then cancelled.

More Information

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