Motorists in Manitoba could be getting a break on their insurance premiums again next year.

Manitoba Public Insurance (MPI) has filed a general rate application with the Public Utilities Board (PUB), requesting an overall rate decrease of 10.5 per cent. If approved, this will be the largest rate decrease in three decades.

According to MPI, an average passenger vehicle owner will pay about $130 less in premiums per year. If approved, this will be the second year in a row that Manitobans will receive a rate decrease from its public auto insurer.

"This historic rate decrease reflects the strong recent performance and financial position of our Corporation," says Ben Graham, President and CEO of MPI. "While many private auto insurers across Canada are asking for double-digit rate increases, Manitobans are receiving the benefits of a well-executed public auto insurance model."

According to Graham, the decrease was made possible thanks to their multi-pronged strategy focusing on insurance fundamentals such as fiscal prudence of managing claims and MPI expenses, changes made to their product suite, implementation of a better reinsurance strategy aimed at reducing volatility, enhanced investment management strategy and building an industry acceptable level of reserves to absorb rate shocks.

In May of this year, MPI customers benefited from a $110 million rebate. Of that, $58 million was directly attributed to fewer claims during the COVID-19 period.

The PUB hearings typically begin in October, concluding later in the month. The board typically issues its order in December. The proposed rates would be effective April 1, 2021, but because renewal dates are staggered, some vehicle owners won't pay their new rates until March 31, 2022.

The requested rate changes by class are as follows:

Private passenger - 11 per cent decrease
Commercial - 4.8 per cent decrease
Public - 6.1 per cent decrease
Motorcycles - 1.8 per cent increase
Trailers - 11.4 per cent decrease
Off-road vehicles - no change
Overall - 10.5 per cent decrease