Insurance Rates to Double for High End Luxury Cars
Prince George, B.C.- Transportation Minister Todd Stone has announced changes to ICBC rates to “make them more affordable for families”.
The average car in B.C. is valued at $15 thousand dollars, but there is growth in high end luxury vehicles that have repair costs that are six times the amount it costs to fix the average car.
So with that in mind, Stone has announced the Government will, as soon as possible, double the basic insurance rate for cars valued at more than $150 thousand dollars, and as soon as is possible, there will be legislation that will end government insurance on such vehicles. Stone says owners of such luxury cars will have to buy private insurance.
The change will not impact trucks, limousines and RV.s, it is targeted to high end luxury vehicles . There are about 3 thousand of such vehicles in B.C. right now.
“This in itself will not be enough” says Stone, to offset the pressure on insurance rates and claims costs “The cost pressures are enormous”. He says there is more work to do and there will be more announcements in the days and weeks ahead.
“Right now, whether a person drives a $15,000 Honda Civic or a $300,000 Ferrari – their basic insurance premiums are similar. If owners of high-end luxury cars can afford a high-priced car, they certainly can afford to pay higher premiums to cover the real cost for their repairs,” says Stone. “This policy needs to be fair for all British Columbian ratepayers, and we want to ensure that the regular everyday driver is not paying for the additional repair costs of these cars
through their insurance rate.”
Working with ICBC, the planned rate increase for 2017 has been reduced from 15.25% to 4.9%.