BC drivers face increased rates

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ICBC to apply for basic rate hike end of this year.

Suzanne Sharma on July 13, 2011

BC drivers could face increased rates for 2012 as the province’s public insurer, Insurance Corporation of British Columbia (ICBC), applies for a basic rate hike at the end of this year.

One of the reasons for the rate increase is that there has been a rise in the frequency and cost of bodily injury claims, which are covered by basic insurance, and it is putting pressure on rates, said Mark Jan Vrem, manager of media relations and strategic communications at ICBC.

Also, the economy is recovering faster than expected, resulting in more drivers on the road and traffic accidents, he told Canadian Insurance Top Broker July 13. And when combined with a return to normal wet weather patterns, this has led to an increase in bodily injury claims and put additional pressure on rates.

Basic rates were reduced by 2.4% in 2010 and have not had an increase since 2007, according to Jan Vrem. Also, optional rates have decreased by almost 20% over the past 6 years.

At the moment, ICBC can’t comment on how much rates could increase, and has approached the British Columbia Utilities Commission (BCUC) about a reduced rate increase.

“We’ve informed the BCUC that we are going to take the next few months to work at reducing the rate increase,” said Jan Vrem.