Regulator approves 15% cut to ICBC’s basic insurance rates

B.C. drivers can expect to pay less to insure their vehicles this year.

The BC Utilities Commission has approved a 15 per cent cut to ICBC‘s basic insurance rates, effective May 1, 2021.

The 15-per cent cut is the largest in the public insurer’s history.

The move stems from the province’s move to a no-fault insurance regime, which the NDP government has dubbed “enhanced care.”

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

1:54 ICBC says rate cut could save drivers about $400 per year

The regulator has also approved changes to ICBC’s Tariff Pages to provide rebates to B.C. drivers on the difference between their current coverage and the new, no-fault coverage.

Under the new system, crash victims will have access to up to $7.5 million in medical and rehabilitation benefits, up from the current $300,000.

However, they will also be prohibited from suing for financial compensation in most cases, unless 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.

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The approval is on an interim basis pending the BCUC’s final decision, which will follow a review by the regulator that includes public input.

— With files from Richard Zussman