604 Now
News

ICBC Is Moving Forward With 6.3% Increase To Basic Insurance Rates

ICBC

Photo: Jerry Meaden / 604 Now Flickr Pool

ICBC insurance rates are set to increase once again.

ICBC will submit its next basic rate application with the British Columbia Utilities Commission later today, asking for a 6.3% increase to basic insurance rates.

This is “an increase which would have needed to be almost 40 per cent if not for the major reforms being introduced to B.C.’s auto insurance system” reads a statement.

RELATED: Metro Vancouver Weather Forecast Calling For Vigorous 90 km/h Winds

It was reported last month that ICBC is projecting a net loss of $890 million for its current fiscal year, as external pressures continue to grow from a record number of crashes taking place in B.C., and the increase in claims volume and higher claims costs.

The escalating cost of injury claims is the single biggest factor impacting basic insurance rates – injury claims costs have soared by 43% in just five years; projected to total $3.67 billion in 2018 alone.

So what does this increase mean for drivers?

If approved, “the new basic insurance rate would be effective April 1 and will mean an average increase of less than $60 for personal customers’ basic insurance coverage”.

[sjnow-ad-large-leaderboard]

Solutions For ICBC

The current government hopes to lessen this financial burden, and has made some steps to doing so; however, the challenge is daunting, to say the least. One measure taken has been increasing fines for distracted drivers. Distracting driving now causes more accidents than drunk driving, and two fines in a three year period will land offenders with a whopping $2000 fine.

The government and ICBC are also modernizing ICBC’s 30 year-old insurance system to “ensure all drivers pay premiums which more accurately reflect the risk they represent on the road”. In addition, a number of road safety initiatives are underway.

[sjnow-ad-large-leaderboard]

Log in or create an account to save content

Become a local insider