A crash last month at Highway 10 and Scott Road in Delta. Injury crashes and the resulting claims are driving basic rates up at ICBC.

Average driver will pay ICBC $60 more in basic, optional insurance

ICBC settles on 5.5 per cent basic rate hike, province approves transfer of $450 million from optional side

The Insurance Corp. of B.C. has decided to raise basic auto insurance premiums by 5.5 per cent, driving up the annual cost by more than $44 for the average driver.

And a further jump in optional premiums for coverage like third-party liability will add nearly $16, for an annual increase of about $60 on average.

The basic premium increase is less than the 6.7 per cent jump ICBC had warned in August might be required as a result of rapidly rising injury claims and the resulting payouts.

The hit is lower in part because the province has approved an unusual $450-million transfer of capital from ICBC’s optional insurance business to the basic insurance side.

There’s been growing financial pressure on the basic side, while ICBC has had more wriggle room in recent years to actually decrease rates on its optional side, where it does not hold a monopoly and competes with private insurers.

But officials say optional costs are now also on the rise because optional third-party liability insurance covers injury payouts over $200,000.

Adrian Dix, the NDP’s critic on ICBC, noted the average driver will be paying nearly 30 per cent more in basic premiums than they did when Christy Clark became premier in 2011.

“Overall what we’re talking about is a major, major increase in rates for the average motorist,” said Dix, who lays part of the blame on management decisions at ICBC and trouble with the rollout of its new computer system.

He noted the provincial government has not opted to forgo the $160-million annual dividend it extracts each year from ICBC’s optional side.

“They’re not sacrificing,” Dix said. “They’re doing a double dip on the optional side.”

Canadian Taxpayers Federation spokesman Jordan Bateman said the continued flow of dividends to the government is particularly frustrating.

“Despite the fact we get gouged for more money each year, the government continues to suck all the profits out and puts them into general revenue,” Bateman said.

“We have a government that talks about affordability but erodes it when it comes to ICBC rates that continually jump higher than the rate of inflation.”

Transportation Minister Todd Stone said more than 80 per cent of motorists use ICBC for both basic and optional coverage and they are paying only 13 per cent more than in 2011 after recent optional rate cuts are taken into account.

Forgoing the annual dividend to government would have only trimmed the basic rate hike to 5.2 per cent, Stone said.

That 0.3 per cent reduction would have been “negligible” in terms of impact on customers, he said, but would “blow a pretty significant hole” in the province’s budget.

He called the $450-million transfer a one-time shift that can’t be repeated next year because there won’t be enough excess capital on the optional side.

ICBC officials also said they’re stepping up efforts to combat exaggerated and fraudulent claims.

A new fraud analytics tool is to be deployed early next year to use data, algorithms and statistical methods to quickly flag patterns and high predictors of fraud early in the claims process.

ICBC projects bodily injury claims costs will hit $2.3 billion this year, up from $2.17 billion in 2014. Those costs are up 64 per cent since 2008. The number of injury claims are up about 11 per cent from the previous year.

Another basic rate hike is guaranteed next year.

The province’s rate smoothing policy requires each new year’s rates be no more than 1.5 per cent above or below the previous year’s. That means ICBC will be considering an increase of between four and seven per cent next fall.

The proposed basic rate hike, effective Nov. 1, must still be approved by the B.C. Utilities Commission.

ICBC RATE CHANGES and GOV’T DIVIDENDS | Create your own infographics

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

North Coast home-grown ice talent Carly Edwards from Haida Gwaii and Prince Rupert takes centre ice on TV competition show Battle of the Blades Thursday nights at 8 p.m., with her partner NHL partner Kris Versteeg. (Photo supplied)
Local figure skater spotlights on TV show’s center ice

Prince Rupert’s Carly Edwards is featured on TV competition show Battle of the Blades

A deer was spotted in October 2020 in Prince Rupert, B.C., with a bright pink yoga ball stuck in its antlers. (Kayla Vickers/Chronicles Of Hammy The Deer Official Page)
PHOTOS: Hammy 2.0? Prince Rupert deer spotted with bright pink yoga ball stuck in antlers

The BC Conservation Officer Service is aware of the deer roaming around the city

B.C. Ferries is still providing ferry service between Tsawwassen and Victoria, 60 years later. (File - Black Press Media)
Ferry sailings cancelled for Oct. 29th and 30th

BC Ferries announces technical difficulties on Northern Expedition

Technical difficulties with the recording and broadcast of the Oct. 26 Prince Rupert City Council meeting mean residents were unable to watch on TV or online happenings in the meeting. (The Northern View file photo)
Technical difficulties leave public unable to access City Council meeting

Summary brief of Prince Rupert City Council meeting

Requests for proposals for the first stage of a water treatment facility project have been issued by the City of Prince Rupert on Oct. 26. (Photo: K-J Millar/The Northern View)
Water treatment facility project in Prince Rupert enters first phase

Prince Rupert seeks proposals for assessment of water quality supply and treatment options

A woman wears a face mask and plastic gloves while browsing books as a sticker on the floor indicates a one-way direction of travel between shelves of books at the Vancouver Public Library’s central branch, after it and four other branches reopened with limited services, in Vancouver, on Tuesday, July 14, 2020. (THE CANADIAN PRESS/Darryl Dyck)
B.C. reports 234 new COVID cases, 1 death of senior who had attended small birthday party

Roughly 5,700 people are isolating due to being exposed to a confirmed case

Burnaby RCMP responded to a dine-and-dash suspect who fell through a ceiling in March 2020. (RCMP handout)
VIDEO: Suspected dine-and-dasher falls through ceiling of Burnaby restaurant

A woman believed to be dashing on her restaurant bill fell through the kitchen ceiling

A can of Canada Dry Ginger Ale is shown in Toronto on Thursday Oct. 29, 2020. The maker of Canada Dry Ginger Ale has agreed to pay over $200,000 to settle a class-action lawsuit launched by a B.C. man who alleged he was misled by marketing suggesting the soda had medicinal benefits. THE CANADIAN PRESS/Joseph O’Connal
B.C. man’s lawsuit over marketing of Canada Dry ginger ale settled for $200K

Soda’s maker, Canada Dry Mott’s Inc., denied the allegations and any liability

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Vancouver Island-based Wilson’s Transportation has expanded to fill some of the routes left unserviced by Greyhound as of Nov. 1, 2018. (Black Press files)
B.C. bus companies say they need help to survive COVID-19

Like airlines, motor coaches have lost most of their revenue

RCMP. (Phil McLachlan - Black Press Media)
Kelowna Mountie hit with 2nd lawsuit in 2 months for alleged assault

Const. Julius Prommer is accused of breaking a woman’s knee during while responding to a noise complaint

Hirdeypal Batth, 24, has been charged with sexual assault and forcible confinement in relation to an incident in August 2020. (VPD handout)
Man, 24, charged with sex assault after allegedly posing as Uber driver in Vancouver

Investigators believe there could be more victims outside of the Vancouver area

B.C. Premier John Horgan and Washington Gov. Jay Inslee arrive for annual Cascadia conference in Vancouver, Oct. 10, 2018. They have agreed to coordinate the permanent switch to daylight saving time. (B.C. government)
B.C. still awaiting U.S. approval to eliminate daylight saving time

Clocks going back one hour Nov. 1 in Washington too

Prime Minister Justin Trudeau shakes hands with US Vice-President Joe Biden on Parliament Hill in Ottawa on Friday, December 9, 2016. THE CANADIAN PRESS/ Patrick Doyle
A Biden presidency could mean good news for Canadian environment policy: observers

Experts and observers say even a U.S. outside the Paris agreement may ultimately end up in the same place

Most Read