ICBC Applies to Boost Rates
Prince George, B.C.- ICBC is filing an application to increase its basic rates by 4.9%.
The insurance corporation says the hike is needed to cover what it says are “accelerating” costs, from increases in the number of crashes, the number of claims being filed, and the cost of settling those claims.
According to ICBC, the number of crashes across B.C. jumped from 260,000 in 2013 to 300,000 in 2015, an increase of 15%. The Insurance Corporation also cites higher costs to repair vehicles , increased numbers of people being injured in crashes and increased injury claims.
“We certainly don’t like to have to ask our customers to pay more but these external pressures are very real and they have created a perfect storm which we are struggling to hold off,” said Mark Blucher, ICBC’s president and CEO. “We’ve worked hard to get this rate increase lower than last year’s (5.5%) but the amount of basic premiums we collect will still not cover the increasing amount we’re paying out in basic claims costs.”
If approved, the increase will add about $3.50 a month to the average basic insurance coverage.