British Columbians may be hit with a 5.2 per cent increase on basic vehicle insurance rates.
Last week, the Insurance Corporation of British Columbia (ICBC) applied to the British Columbia Utilities Commission (BCUC) asking for a 5.2 per cent increase to rates. If approved, residents can anticipate on average to pay approximately $3 more per month on their insurance rates.
ICBC officials stated the need for the change is due to mounting pressure from increasing injury claims costs — which cover payouts for pain and suffering, future care and loss of wages. ICBC’s bodily injury claims totalled $1.9 billion in 2013 — a $73 million bump up from 2012 and more than $500 million from five years ago.
The rising number and cost of injury claims is commonly the biggest single factor driving rates for all auto insurers across North America, ICBC stated in a press release. There are various factors contributing to the increasing number of injury claims, including the use of personal electronic devices behind the wheel, officials noted.
In September, ICBC, along with government and police, are launching a new campaign targeting this issue.
The basic insurance rate application will ask the BCUC to approve the increase effective November 1 on an interim basis while it reviews the full application. The proposed 5.2 per cent increase is in addition to a deferred 0.3 per cent increase directed by the BCUC in last year’s rate decision.
