Manitoba's public auto insurer has applied for what it says would be the largest reduction in premiums in three decades.

Manitoba Public Insurance is asking regulators to approve an average 10.5 per cent cut in overall rates.

It says that would save the typical passenger vehicle owner about $130.

The drop would come on top of a one-time rebate offered to drivers that was due largely to reduced traffic and accident claims during COVID-19 restrictions.

If the request is approved, around 800,000 drivers would see the difference by April 2021. 

“I actually think it’s a great day for the corporation, but it’s also a great day for Manitobans,” says MPI CEO Ben Graham.

“MPI is really demonstrating the strength of a well-run public insurance company, where basic products are priced at a break-even rate,” he says. Graham says the cuts come from MPI's excess capital, fiscal prudence, and anti-fraud efforts that have saved the crown corporation money.

While most motorists would see rate cuts, motorcyclists are out of luck, however. In fact, they will see a 1.8 per cent increase in rates in 2021.