ICBC asking for a 5.5 per cent increase to basic insurance rates
ICBC says drivers should expect an increase in basic rates in the next few months.
The corporation is now asking for a 5.5 per cent increase. It previously submitted an application for a 6.7 per cent increase at the end of August.
If approved, this will mean an average increase of $3.70 per month for customers’ basic insurance coverage.
“In the best interest of our customers, we have worked alongside government during the last few weeks to identify strategies to help lower both this year’s rate increase and to attempt to help alleviate the expected ongoing pressure injury claims will continue to put on insurance rates in future years,” said Mark Blucher, president and CEO of ICBC, in a release.
ICBC’s bodily injury claims costs, including payout for pain and suffering, topped $2 billion for the first time in 2014 and are expected to escalate to $2.3 billion in 2015. ICBC says during the same time period, overall insurance rates have increased by less than 10 per cent for the average consumer.
In recent months, the number of injury claims has escalated to almost 68,000, which is 7,000 more than the previous 12 months.
Transportation Minister Todd Stone says he is going to work to keep ICBC rates as low as possible.
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