VANCOUVER — The Insurance Corporation of British Columbia will be seeking a 4.9-per-cent hike to its basic auto insurance rates.
The corporation has submitted its application to the B.C. Utilities Commission, with interim approval expected in early September, covering rates effective Nov. 1.
Mark Blucher, the corporation's president and CEO, says a final decision is due by the spring and ICBC estimates the increase will add about $3.50 per month to the cost of basic insurance coverage.
.@TimmBruch After years of stability, crashes in BC went up by 15% from 2013 to 2015. More: https://t.co/6B9tNXHzan pic.twitter.com/ImCgTKR8vW
— ICBC (@icbc) August 25, 2016
Blucher says more crashes, more damage to vehicles, higher repair costs and a leap in injury claims are some of the reasons for the rate increase.
He says in the past, the corporation has offset claims costs by relying on investment income but low interest rates and challenging market conditions mean that is no longer an option.
The 4.9-per-cent boost is lower than the 5.5 per cent approved in 2015, but Blucher says without internal measures, such as the transfer of $472 million from the corporation's optional insurance business, ICBC would have needed a 15.5-per-cent increase to cover 2016 costs.
