The bad news is that your basic auto insurance could be going up 6.3%.
The good news is that the increase could have been closer to 40% if major reforms weren’t being introduced to B.C.’s auto insurance system, says ICBC.
While unfortunately our rates need to increase, the major reforms being made to our insurance system are already having an impact – without these changes, the rate increase would be almost 40% per customer. https://t.co/ghZedJRKin
— ICBC (@icbc) December 14, 2018
With a net loss of $890 projected for this fiscal year, ICBC has submitted a basic rate application with the British Columbia Utilities Commission that includes a 6.3% increase.
Escalating costs of injury claims is the reason behind the proposed increase, as the insurance company says they’ve soared by 43% over the last five years.
In response, the provincial government and ICBC have put these major reforms in place, but the rate increase is still necessary.
Without the reforms, B.C. drivers would be faced with an increase to their basic insurance rates around $360.
The changes will introduce a limit on payouts and suffering for minor injuries and a new dispute model, among other things, projected to save ICBC $1 billion annually.
"The changes being made at ICBC today are arguably the most substantial in the corporation's long history and to the auto insurance industry as a whole in this province," said Nicolas Jimenez, president and CEO at ICBC.
"While we acknowledge no rate increase is welcome news, it is encouraging to see these major reforms already having an impact on our insurance rates.”
If approved, the new basic insurance rate would be effective April 1 and would mean an average increase of less than $60 for drivers.
