by Province of British Columbia on Monday Dec 14 2020
ICBC will apply to the British Columbia Utilities Commission (BCUC) on Tuesday, Dec. 15, 2020, for a significant decrease to basic insurance rates.
With the introduction of ICBC s new Enhanced Care coverage next spring, drivers will save on average 20%, or approximately $400, on their full basic and optional vehicle insurance.
As a key part of these savings, ICBC will apply to the British Columbia Utilities Commission (BCUC) on Tuesday, Dec. 15, 2020, for a significant decrease to basic insurance rates. A new auto-insurance system with more affordable premiums and greater care benefits is on the way for British Columbians, said Mike Farnworth, Minister of Public Safety and Solicitor General.
ICBC introducing ‘Enhanced Care Coverage’ to lower vehicle insurance rates
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You could be seeing lower insurance starting next May.
ICBC announced Monday that it is applying to the British Columbia Utilities Commission (BCUC) for a new ‘Enhanced Care coverage’ that would kick off in May.
The province says through the program ICBC customers will save on average 20 per cent, or approximately $400, on their full basic and optional vehicle insurance.
“If approved by the BCUC, this basic insurance 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,” said Mike Farnworth, Minister of Public Safety and Solicitor General.
ICBC applying for ‘significant decrease’ to basic insurance rates that would save drivers 20%
BC drivers could be looking at much cheaper insurance when they renew their coverage in 2021.
On Tuesday, ICBC will apply to the British Columbia Utilities Commission (BCUC) for a “significant decrease” to basic insurance rates.
It’s expected to save drivers an average of 20% on their full basic and optional vehicle insurance, which equates to around $400. A new auto-insurance system with more affordable premiums and greater care benefits is on the way for British Columbians, said Mike Farnworth, solicitor general. If approved by the BCUC, this basic insurance rate decrease will be the largest in our province in more than 40 years.
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 commission must approve ICBC’s proposal, which is based on the Crown corporation’s own assessment of the lower costs it will incur by not offering all injured drivers an opportunity to claim damages from minor car accidents. The new no-fault “Enhanced Care” system proposes higher care, treatment and income benefits, funded by a significant reduction in legal costs. Under the current system, ICBC projected, last February, it would pay $960 million in legal costs and $940 million in injury claim settlement costs in 2022. The new system, which is slated to take effect in May 2021, is expected to reduce legal costs to $100 million and settlement costs to $130 million – decreases of nearly 90% and 86%, respectively.