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

Click to play video: 'ICBC applies to cut insurance rates' ICBC applies to cut insurance rates
WATCH: (Dec. 15, 2020) ICBC applies to cut insurance rates – Dec 15, 2020

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.

Read more: What will you be paying more, and possibly less, for in B.C. in 2021?

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.

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

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.

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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.

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

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.

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

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