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B C asks for drop in basic auto insurance rates

Winnipeg Free Press By: The Canadian Press Save to Read Later VANCOUVER - British Columbia s public insurance company is applying for a 15 per cent decrease in its basic rates. Minister of Public Safety and Solicitor General Mike Farnworth talks during a press conference at the legislature in Victoria on Monday, October 28, 2019. THE CANADIAN PRESS/Chad Hipolito VANCOUVER - British Columbia s public insurance company is applying for a 15 per cent decrease in its basic rates. Solicitor General Mike Farnworth says if the request is approved by the B.C. Utilities Commission, it will be the largest decrease in 40 years. The application is part of the government s approach to reduce insurance premiums for drivers by an average of 20 per cent, or about $400, along with a new coverage plan that goes into effect in the spring.

ICBC applies for 2021 rate reductions but pandemic refunds undecided

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.

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