B.C. drivers will be paying 4.9 per cent more for ICBC insurance.

ICBC rates to go up by 4.9 per cent

The provincial government directed the rate approval for next year.

Those who insure their vehicles in B.C. will see a rate increase for basic insurance of 4.9 per cent.

The provincial government has directed the B.C. Utilities Commission to approve the rate for next year for ICBC, but it wants to make sure that in the long term, the rates are in line with inflation.

Transport Minister Todd Stone told reporters in a conference call that he acknowledges an increase of nearly five per cent year-over-year is not affordable for most families.

“I’ve heard the message loud and clear that people are worried about the increasing cost of living,” he said.

The minister announced the government has launched a third-party review to make recommendations that will keep auto insurance rates affordable in the long term.

Stone said the goal is to put British Columbia drivers first and for the Insurance Corp. of B.C. to manage its cost pressures and bring rate increases closer to the inflation rate.

He said the review will look at the entire spectrum of the insurer’s operations to come up with as many solutions as possible for reducing cost pressures.

“We can’t keep doing things the same way and expect a different outcome, so we’re prepared to change,” Stone said.

The minister said the government does not intend to move to a privatized model of insurance through this review.

The insurance provider has already begun the process to prepare for the review, and the third party is expected to be selected in the new year.

Stone said the aim is to have results of the review ready by early next summer to be able to effect the insurance provider’s next round of rate filing that is due in August.

The third-party review comes as the frequency and severity of injury claims jumped, while the average cost of vehicle claims increased by 17 per cent between 2014 and 2015.

The province announced earlier this year that it would be doubling basic premiums for high-priced luxury vehicles and clamping down on fraud with a new detection tool.

ICBC is the province’s public auto insurer and almost all drivers in the province must purchase basic auto insurance for their vehicle through the corporation.

The Canadian Press

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Section of Arrow Lakes Drive temporarily closed Tuesday due to downed line

Motorists were driving over the cable without knowing if it was electrified

Kootenay mom turns COVID lockdown into positive action

Take a Hike runs from the Kootenay Columbia Learning Centre in East Trail

Totem pole considered cultural appropriation removed from Nelson’s Hume School

The pole had also become rotted and was seen as dangerous to students

Ootischenia man fined for driving vehicle held together by bungee cord

Vehicle also had improper plates and no insurance

Rossland resident Aerin Bowers completes 19-km swim along Christina Lake

Bowers said her dad inspired her to complete the epic adventure

B.C. reports 91 new cases as officials remain worried over ‘clusters of COVID-19

There have now been a total of 8,395 cases in B.C. since the pandemic began

Kootenay yearling released into northern wild

Photos: Scroll to the bottom of the story to see Kenzo’s release

Transgender B.C. brothers debut fantasy novel as author duo Vincent Hunter

‘Transgender people are being misrepresented in popular fiction and media, and we aim to change that’

‘Won’t be gathering for Thanksgiving:’ Trudeau says COVID-19 2nd wave underway

In all, COVID-19 has killed about 9,250 people in Canada

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Four more cases of COVID-19 in Interior Health

There are 31 active cases in isolation in the health region

Canada’s active COVID-19 cases top 10,000 as daily new cases triple over the past month

Dr. Tam repeated her warning to young people, who have made up the majority of recent cases

First 8 months of fatal overdoses in B.C. have now exceeded 2019 death toll

Nine people died every two days in August, BC Coroners Service data shows

Most Read