Basic ICBC premiums to jump 11 per cent

Cut in optional rates to offset much of the pain for most B.C. motorists

Most motorists will pay ICBC about $27 more in premiums next year, but the bite will be deeper for those who opt only for basic insurance.

Basic premiums will rise $68 or 11.2 per cent per customer if the B.C. Utilities Commission approves the public auto insurer’s proposed rate hike.

Optional premiums will be $41 lower on average, or six per cent.

It reflects a continuing pattern of ICBC reducing the cost of its optional insurance – where it faces competition from private insurers – relative to the basic package, where it has a monopoly.

President and CEO Jon Schubert said the two rates should be looked at in combination, because most motorists buy all their coverage from ICBC.

The combined premium hike works out to an extra 2.1 per cent, lifting the average amount most motorists pay from $1,277 now to $1,304.

Individual rates vary depending on claims history, vehicle type, region of the province, years of experience and level of coverage.

“After four years of not having to increase our rates, we now unfortunately face a different reality,” Schubert said. “We’re not happy that we need to increase our rates but the majority of our customers will be paying just a few dollars more, on average, than they did in 2008.”

He said the drop in optional rates was possible mainly due to declining auto crime and damage claims.

Overall claims costs rose $200 million in the first nine months of 2011.

“We have seen increasing pressure, in particular, from bodily injury costs,” Schubert said.

Bodily injury costs are to hit $1.7 billion this year, up $350 million from five years ago.

Low interest rates due to the global economy have also pushed investment income down.

Just Posted

Alberni-Clayoquot Regional District approves one cannabis store, denies another

Stores would have been located across the street from one another in Cherry Creek

UPDATED: Taylor Flats wildfire in the Alberni Valley under control

Fire is located close to Highway 4 near Sproat Lake

EDITORIAL: Plastics ban needs to start from the top

The more people talk about the plastics ban, the more it may catch on elsewhere…

West Coast Amateur in Port Alberni a success

Top overall winner, with a gross score of 140, was Derek Reid from Arbutus Ridge

ARTS AROUND: Last call for cruise ship vendors

Last cruise ship arrives in the Alberni Inlet on July 6

VIDEO: Sproat Lake Fire Department demonstrates sprinkler safety

Demonstration only took 3-5 minutes to create a deadly scenario where no one could survive

’When thunder roars, go indoors’: How to keep safe before lightning strikes

Each year, an estimated 10 deaths and as many as 164 injuries are lightning-related

B.C. rolls out online registration to speed up evacuee processing

Central Okanagan district tests province’s streamlined emergency management digital self-registration

VIDEO: After 73 years, siblings separated by adoption reunite in B.C

Donna Smith of Abbotsford and Clayton Myers of Williams Lake are glad they met each other

B.C.-born Carey Price brings young fan to tears at NHL Awards banquet

Anderson Whitehead first met his hockey idol after his mother died of cancer

Licence issue delays boozing while cruising on BC Ferries

Planned June launch for alcohol sales delayed

Nanaimo a prime market for new plane, Air Canada says

Vice-president previews Airbus A220, praises Nanaimo’s growth in passenger numbers

B.C. school mourns after 13-year-old killed by fallen tree on field trip

Teenager died after being struck and pinned by tree while on a field trip near Sooke

Most Read