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ICBC filing for 15% decrease on basic car insurance rates to prepare to switch to no-fault

Click to play video 'Mike Farnworth announces changes to ICBC will save B.C. drivers money' Mike Farnworth announces changes to ICBC will save B.C. drivers money
At a press conference on Monday, Minister of Public Safety and Solicitor General Mike Farnworth announces changes to ICBC's Enhanced Care Coverage that goes into effect on May 1 will save the average driver money. – Dec 14, 2020

The Insurance Corporation of British Columbia is set to file for the largest reduction in basic insurance rates in the province’s history.

ICBC is asking the B.C. Utilities Commission to approve a 15-per-cent rate decrease as the province transitions to a no-fault insurance model on May 1, 2021.

The B.C. government has promised a 20-per-cent decrease in overall car insurance rates.

Click to play video 'ICBC says rate cut could save drivers about $400 per year' ICBC says rate cut could save drivers about $400 per year
ICBC says rate cut could save drivers about $400 per year – Dec 14, 2020
Click to play video 'ICBC to apply for decrease to basic insurance rates' ICBC to apply for decrease to basic insurance rates
ICBC to apply for decrease to basic insurance rates – Dec 14, 2020

Read more: British Columbians will be able to renew ICBC insurance online in 2022

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The Trial Lawyers Association of British Columbia has argued the switch to no-fault insurance will greatly diminish people’s right to a fair financial settlement.

Benefits for drivers will change dramatically with the new model: Customers will have up to $7.5 million in medical and rehabilitation benefits compared to $300,000 under the current system.

An injured driver will be able to sue if they are involved in a crash with someone charged with a criminal offence or if either a manufacturer or repair facility is found to have done faulty work.

Click to play video 'Reality check: what will changes to ICBC mean for B.C. drivers?' Reality check: what will changes to ICBC mean for B.C. drivers?
Reality check: what will changes to ICBC mean for B.C. drivers? – Mar 4, 2020

Customers will be able to use the beefed-up Civil Resolution Tribunal as well, and can challenge decisions if there are concerns about the outcome.

When the no-fault model takes effect, millions of drivers will be owed a one-time, prorated refund of the difference between their current coverage and the new coverage.

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For example, a customer who renewed their annual insurance policy on Nov. 1, 2020, would have an expiry date of Oct. 31, 2021.

After the new coverage comes into effect in May, this customer will get a prorated refund for the difference between their existing rate and the new, lower rate.

Click to play video 'ICBC online renewals coming in 2022' ICBC online renewals coming in 2022
ICBC online renewals coming in 2022 – Dec 11, 2020

“ICBC is committed to more affordable insurance premiums and rate stability for British Columbians now and into the future,” ICBC CEO Nicolas Jimenez said.

“The vast majority of British Columbians can expect to start seeing significant savings on their auto insurance in 2021, in addition to (no-fault model) refunds.”