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ICBC Wants To Increase Insurance Rates By 5.5%

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A day after the province revealed its plans to bring in tougher distracted driving penalties, ICBC has proposed increasing basis insurance rates by 5.5 per cent.

While the insurance corporation initially suggested a 6.7 per cent hike, their new proposal has brought the amount down to 5.5 per cent, which will still have motorists paying more than what they currently pay.

The new proposal was submitted to the British Columbia Utilities Commission on Thursday, and if approved, will come into effect as nearly as November 1, 2015, and result in the average ICBC customer paying an extra $3.70 per month on basic insurance coverage.

According to ICBC, the price hike branches from the company’s increase in costs from bodily injury claims.

“In the best interest of our customers, we have worked alongside government during the last few weeks to identify strategies to help lower both this year’s rate increase and to attempt to help alleviate the expected ongoing pressure injury claims will continue to put on insurance rates in future years,” said Mark Blucher, president and CEO of ICBC.

Butcher also pointed out that ICBC saw approximately seven thousand more new injury claims in the last 12 months, a rise that has the company concerned and ultimately puts more pressure on the Crown.

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