The Provincial Government of British Columbia has announced that insurance costs for the average BC driver will increase by 8%, about $130 annually.
Attorney General David Eby called the rate hike “significant,” but also mentioned that other changes are in the works to make the Insurance Corporation of BC (ICBC) more sustainable.
Eby said that the public insurer will approach the BC Utilities Commission this year to seek an additional 6.4% increase to basic premiums, and a 9.6% increase in overall optional insurance rates.
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“There are deep and profound issues that need to be addressed immediately in order to keep rates affordable for British Columbians over the long term,” Eby said in a statement to the media.
CBC reported that the following proposed changes will come into effect right after the rate hike:
- Red light cameras already at intersections will be active 12 hours a day, then 24 hours a day, up from the current six hours.
- Distracted driving pilot technologies will be explored to end cell phone use by high-risk drivers like new drivers and repeat offenders. Drivers who voluntarily adopt such technology could see reduced rates.
- New campaigns and education against distracted driving.
- Safety improvements for the most-crash-prone intersections.
- An “immediate and comprehensive” business audit to find efficiencies in ICBC management.
Eby also said that pain and suffering payouts for some accident victims with “minor” whiplash injuries could be capped. This does not mean, however, that the ICBC would switch to a no-fault insurance model, he explained.
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