MPI: increasing more than your premiums

Something you should know about me: I am a little bit of a hoarder. Not a big league hoarder with stacks of boxes, clothes, chicken bones and Safeway bags filled with collectable dust bunnies. I am actually reasonably organized, but I also happen to have MPI statements dating back several years.

My MPI renewal also happens to more-or-less correspond with the announcement that MPI premiums are increasing close to 1% next year, which means that I happened to have my new statement right in front of me waiting to be paid when I heard the story on TV about the premiums.

An increase of any kind is not something to be happy about, but while premiums are sneaking back up after MPI had it’s knuckles rapped by the Public Utilities Board a few years ago for having them too high, there is another component to your vehicle insurance bill that doesn’t get the same sort of scrutiny: Registration fees.

The vehicle registration fee on my newest statement is $154. This represents a full 15.7% of the cost of insuring my car. Going back to the earliest MPI statement that I have in my little semi-organized hoard of papers — 2002 — the registration fee was $58. That amount made up only 5.9% of the total cost of registering the very same car.

What does this tell us? Well first of all, I need a new car. But also: the increase in registration costs is completely out of line with inflation.

MPI Fees
Why are the vehicle registration charges increases so rapidly? Why did they increase from $119 in 2012 to $154 in 2013?

These fees should reflect the costs of processing your registration. I do not believe they were intended to be used as a general revenue source or a back-door tax.

Has the process of registering vehicles become 166% less efficient over the past 12 years? Has MPI been doling out 10% salary increases to its staff? Or … is this fee being abused as a revenue source for MPI or for the provincial government? I haven’t had a chance to verify this, but a source on twitter claimed that the fees are set in the provincial budget, which would explain a lot.

I may, if I have time, dig around a bit and update this post with my findings, so stay tuned.

12 thoughts on “MPI: increasing more than your premiums

  1. I did the checking when those fees jumped over 20% one year. The registration fee doesn’t go to MPI at all.
    It goes to the Dept. of Transportation ( still that today? ) and is supposedly being used for road and highway projects.
    So yes, it’s another NDP tax.
    That insatiable hoard on Broadway can’t get enough of your money and this is a sneaky way to do it.

  2. Its like you read my mind! You seem to know so
    much about this, like you wrote the book in it or something.

    I think that you can do with some pics to drive the message home a bit, but other
    than that, this is excellent blog. A great read. I will definitely be back.

  3. I do consider all of the concepts you’ve introduced in your post.
    They are really convincing and will definitely work.
    Still, the posts are too quick for newbies. May you please extend
    them a bit from next time? Thanks for the post.

  4. I see a lot of interesting articles on your page. You have to spend a lot of time writing, i know how
    to save you a lot of time, there is a tool that creates readable, google friendly posts in couple of
    seconds, just type in google – k2 unlimited content

  5. Hey there! It appears as though we both have a passion for the same thing. Your blog, “%BLOGTITLE%” and mine are very similar. Have you ever thought about writing a guest post for a similar website? It will unquestionably help gain exposure to your website (my website recieves a lot of traffic). If you are interested, email me at: %EMAIL%. Thank you so much

  6. I read a lot of interesting content here. Probably you spend a lot of time writing,
    i know how to save you a lot of time, there is an online
    tool that creates unique, google friendly articles in minutes, just search in google – laranitas free content source

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s