ICBC files for basic rate increase of 4.9%

FORT ST. JOHN, B.C. – ICBC has announced that they will file a 2016 basic rate application. The increase would be 4.9% to basic insurance, which is lower than last year’s 5.5%.

If approved, it will mean an average increase of $3.50 per month for personal customers’ basic insurance coverage.

ICBC points to numerous factors as to why they have to raise the prices. They say things like rapid increase of reported crashes, growth in damaged vehicle claims, higher vehicle repair costs, more people being injured in crashes, concerning number in injury claims, injury claims costing more than $2 billion a year.

“We certainly don’t like to have to ask our customers to pay more but these external pressures are very real and they have created a perfect storm which we are struggling to hold off,” said Mark Blucher, ICBC’s president and CEO. “We’ve worked hard to get this rate increase lower than last year’s but the amount of basic premiums we collect will still not cover the increasing amount we’re paying out in basic claims costs.”

To cover the costs of more crashes and more claims, ICBC would need to charge every customer approximately an extra $130 a year, which would have required a rate increase of 15.5 per cent.

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