Basic auto premiums in Manitoba are set to increase next year.

The Manitoba Public Utilities Board (PUB) says in a release, that a 3.7 per cent overall general rate increase for basic compulsory motor vehicle premiums has been approved, effective March 1, 2017. Manitoba Public Insurance asked for a hike of 4.3 per cent.

"The Board found that on the evidence before it, (MPI) has not met its onus of proving that the applied for rate level change of 3% was just and reasonable," the PUB release explains.

The 3.7 per cent general rate increase does not mean all motorists with each major driving class will experience a rate adjustment, say the PUB. Adjustments will be determined based on MPI's rate design for each class. Those vehicle classes include: private passenger, commercial, public, motorcycle, trailers and off-road vehicles.

There will be no change to permit and certificate rates, vehicle premium discounts and driver licence premiums, service and transaction fees, fleet rebates or surcharges, or the $40 discount on approved aftermarket and manufacturer/dealer installed anti-theft devices.