Manitobans will see a bump in the rates they pay for auto insurance, but it won’t be as high as what Manitoba Public Insurance was wanting.

The provincial Public Utilities Board approved a 3.7% overall general rate increase on Friday on compulsory motor vehicle premiums effective March 1.

The Crown corporation had gone to the PUB looking for a 4.3% increase.

“The board found that on the evidence before it, the corporation has not met its onus of proving that the applied for rate level change of 4.3%, was just and reasonable,” a PUB press release stated.

A statement from MPI said the corporation “will remain financially vulnerable” if interest rates “continue to under-perform,” a factor MPI cited previously in applying for the increase.

“The corporation remains concerned that failure to establish an appropriately sized basic rate stabilization reserve (RSR) based on standard industry practice, makes it difficult to protect vehicle owners from large premium increases or the potential need for RSR rebuilding fees in the future,” the statement read.

MPI spokesman Brian Smiley said in an email an average private passenger vehicle owner will pay about $33 more per year, while motorcycle owners will pay about $17 more.