MPI eliminates deductibles for vandalized cars in new insurance option

Manitoba Public Insurance will no longer charge a deductible to most drivers whose vehicles are vandalized.

As of Friday, the insurer is offering a $0 deductible for vandalism claims for customers who are part of its $100 or $200 deductible programs.

The changes officially take effect Oct. 1, but officials said all vandalism claims filed from today forward will be dealt with in "good faith" and be included in the new program.

If you're part of the 25 per cent of MPI customers who are in the $500 deductible program, you'll be out of luck, though.

The insurer offers a base deductible of $500 for claims, but gives customers an option to "buy down" the deductible to $100 or $200. About 700,000 customers take that option, according to the insurer.

To cover the costs, MPI will up premiums by between $3 and $5 per year starting in March 2016.

The insurer dealt with 10,000 vandalism claims last year, and a rash of vandalism cases in River Heights this year brought the issue to the forefront, MPI officials said.

"It's just the basic principle of insurance. You spread that loss," said Manitoba Justice Minister Gord Mackintosh. "The average vandalism claim is $1,300, and you could, with the purchase of the option, reduce it to zero. It's a really good deal."

Mackintosh said people who lived in the area were being repeatedly victimized and were fed up with having to continually shell out deductibles.

"What we were experiencing in River Heights was repeated vandalism of a particular vehicle. So it wasn't just a matter of paying $100. It was $100 and $100, $100 and $100," he said. "People were asking, 'Can we have some relief from this?'"

Peter Smith lives in the area and had his car windows smashed three times in three months.

"It's really kind of wanton – nothing to be gained from it," he said. "I keep nothing in my car, so they never got anything. They just smashed the window."

Smith said he's happy MPI has now stepped up to cover the deductibles.