ICBC applying for "significant decrease" on basic insurance rates
ICBC will be applying for a “significant decrease to basic insurance rates” from the British Columbia Utilities Commission (BCUC).
The announcement was made on Monday and is timed with the introduction of the insurance corporation’s new Enhanced Care coverage, launching in Spring 2021.
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Mike Farnworth, Minister of Public Safety and Solicitor General, says that if approved, “this basic rate decrease will be the largest in our province in more than 40 years.”
“British Columbians deserve auto insurance that is affordable and takes care of them when they need it, and this is exactly what Enhanced Care will deliver.
The application will be made on Tuesday and will seek a 15% decrease in basic insurance rates. If approved, the decrease will remain in effect for two years as opposed to the traditional one year, as a means of giving more “predictability” in insurance rates.
The Ministry of Public Safety and Solicitor General says that “the vast majority of customers” will receive the savings. ICBC will also reduce its optional third-party liability rates in February 2021.
The provincial government also announced that once Enhanced Care takes effect in Spring 2021, “millions of British Columbians will receive a one-time, pro-rated refund.”
The refund will be calculated based on the difference between a driver’s current coverage plan and their new, lower-cost Enhanced Care coverage, as well as the length of their existing policy that extends past May 1, 2021.
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