Utilities Commission gives interim approval to ICBC for 6.3% increase to basic car insurance

The B.C. Utilities Commission (BCUC) has given a 6.3 per cent increase on basic car insurance the stamp of approval.

ICBC requested in December the increase that will come into effect on April 1, 2019 and affect all new and renewed policies from then on.

The annual increase means rates will go up an estimated $60 on an annual basis. The increases do not factor in optional insurance, which is also expected to go up.

The provincial government is in the midst of an overhaul at ICBC. Attorney General David Eby has introduced caps to soft tissue injuries and restrictions on how lawyers can bill that is estimated to save $1 billion a year. If the province is able to realize those savings, the goal is to peg long-term basic insurance rates to inflation.

The public insurer lost $1.3 billion last year and is projected to lose more than $800 million this year.

As part of approving the rate increase on an interim basis, the BCUC has established a public review process to seek feedback on ICBC’s application. Members of the public can request intervener status, submit a letter for comment or register as an interested party.

The panel will determine how any difference between the approved interim rates and permanent rates will be refunded to, or collected from, policyholders at the time the panel makes its final decision.