VANCOUVER, April 10, 2007 – Insurance Corporation of British Columbia (ICBC) rates will continue to be low and stable through 2007, with better rates on the horizon for lower-risk customers.
“This year, rates are going down or staying roughly the same for half of B.C. motorists who buy their basic and optional coverage from ICBC,” said Paul Taylor, ICBC’s president and CEO. “For the majority of customers who choose ICBC for their optional coverage, overall rates in 2007 will be approximately the same as they were in 2004.”
The following outlines rate changes for 2007:
- An average 3.8% decrease in rates for optional coverage will be implemented in May. Most customers who buy their private-passenger optional insurance from ICBC will see a decrease in their optional insurance rates.
- A 3.3% increase in rates for basic insurance is being recommended to the B.C. Utilities Commission later this month. This is to address the estimated increase of 3-4% in future bodily injury claims costs. ICBC will be seeking interim approval for the rate change effective in May.
For implementation in 2008, ICBC is also proposing rate design changes for basic insurance that target higher-risk drivers. This plan will be filed with the BCUC and, if approved:
- High-risk drivers will pay hundreds, and in some cases, thousands, of dollars more for their insurance, which will translate into savings for lower-risk customers. Up to 145,000 drivers with convictions for behaviour with the strongest links to causing crashes will pay the additional premium. High-risk drivers cause more crashes, particularly more serious and costly crashes involving injuries and fatalities.
- About 10 per cent of customers whose vehicle is used by other drivers will pay a modest additional premium. The $25 premium will be applied if one of the other drivers’ experience or crash history is worse than that of the principal operator. One in four crashes involves a driver who is not the principal operator listed on the insurance policy.
“Higher rates for high-risk drivers means benefits for good drivers,” said Taylor. “Drivers need to drive more safely or they will pay higher premiums.”
During the coming months, ICBC’s proposals to the BCUC will go through a public process led by the Commission, with a final decision expected later in the year.
For more information, visit www.icbc.com.