On January 12, 2017 the B.C. Utilities Commission (BCUC) approved a request from ICBC for a 4.9% rise on basic insurance rates. This means all drivers who are insured in BC will see this increase take effect on their next policy. This rate hike is the result of an increased number of claims, which are becoming more costly to settle.
It is expected that basic insurance rates will increase by an average of $3.50 per month, which works out to approximately an extra $42 a year. This is due to a number of factors, including:
- Greater number of accidents
- Rise in injury claims
- Higher vehicle repair costs
In BC, the number of vehicles on the road has increased by 3 million in recent years. Having a higher number of cars on the road has led to a 10 percent rise in damage and injury claims since 2012. This rise in claims, along with the increasing cost to repair vehicles and cover legal and medical expenses has put external pressure on ICBC, who are attempting to offset these costs by increasing insurance rates.
One of the biggest issues that ICBC continues to face is distracted driving. Distracted driving is a leading cause of crashes in BC, accounting for one-quarter of all fatal accidents. ICBC plans to continue to take steps to reduce the number of distracted drivers on the road; however, until claims go down, it is expected that insurance rates will continue to rise.
This increase in rates is obviously concerning for BC residents who already face high living costs but ICBC plans to make sure that insurance rates are aligned with inflation over the long-term. For more information on this rate increase, visit Autoplan insurance rate changes.
DriveSure.ca provides a suite of insurance products that help you protect the value of your vehicle including replacement cost, limited depreciation, post-crash guarantee and OEM parts. Contact a DriveSure.ca broker in your area to get a quote.