Car drivers in Manitoba enjoy some of the lowest insurance rates in Canada. However, the way we pay for our insurance may encourage us to drive more than we need to. Given the costs driving imposes on our infrastructure, our health care system and our environment, shouldn’t we be giving incentives for people who drive less?
One option that is being used in some other jurisdictions is “Pay As You Drive” insurance. This model allows drivers to pay less if they use their car less than an average driver. In the United States, Progressive Insurance drivers can save up to 15 percent on their insurance by a combination of practicing safe driving and by driving less.
In 2006, Green Action argued to the Public Utility Board that Manitoba Public Insurance should offer this as an alternative here in Manitoba. Earlier this month, the PUB agreed with us, and is now asking MPI to conduct research on the feasibility of pay as you drive in Manitoba.
Tell us what you think.
Read our blog post on Pay As You Drive for more information.