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

Just Posted

Solutions in sight for Parksville Qualicum Beach doctor shortage

With feasibility study funded, group shares vision of ‘campus of healthcare’

Raise the curtains: New outdoor theatre coming to Parksville

A $204,000 boost comes from Island Coastal Economic Trust

‘Handmade for Hope’ will run at Orca Place in Parksville

Grant received; program will run in different room

RDN residents display good recycling habits

Program shows most people comply with collection rules

Parksville swimmer shatters four world records

Nicholas Bennett, 16, shines on world stage

VIDEO: Boys help rescue Cariboo bear cub

The cub, weighing just 24lbs, has been taken to wildlife sanctuary in Northwest B.C. for the winter

Bear raids freezer, gorges on Island family’s Christmas baking

Hungry bruin virtually ignored meat and fish, focused, instead, on the sweets

Second warning on romaine lettuce from California region as another E. coli case reported

Two cases of E. coli have been reported in relation to the illness in the U.S.

Residents in B.C. city could face 133% tax hike in ‘worst case’ lawsuit outcome: report

An average home could see a tax increase of $2,164 in one year

B.C. pharmaceutical company’s stocks double in value after successful lupus drug trial

More than 40 per cent of patients using voclosporin saw improvements in kidney function

BC Hydro reservoirs see record low rain across Vancouver Island

Hydro electric watersheds are at a third of their normal levels

VIDEO: John Lennon’s iconic Rolls Royce rolls into Vancouver Island college for checkup

Royal BC Museum, Camosun College and Coachwerks Restorations come together to care for car

‘Things haven’t changed enough:’ Ecole Polytechnique anniversary prompts reflection

Fourteen women were fatally shot by a gunman at the Montreal school on Dec. 6, 1989

B.C. Transit finds 28 used fareboxes online, saves $300,000

‘Someone joked maybe we can buy used fareboxes on eBay,’ CEO says

Most Read