The provincial government of British Columbia has announced that local drivers might see their insurance costs decrease next year – and the region’s brokers are happy with the news.
The Insurance Corporation of BC (ICBC) has filed for a 15% decrease on basic auto insurance rates with the British Columbia Utilities Commission; if approved, the lowered rates could apply starting May 01, 2021. But, according to a recent statement by BC minister of public safety and solicitor general Mike Farnworth, auto insurance customers could see their insurance rates go down as early as February 01, 2021 if a decrease on optional auto insurance rates is also approved.
May 01, 2021 is also the date when the province’s Enhanced Care program launches. Under the program, most drivers with ICBC basic and optional coverage can expect average savings of about 20%.
ICBC’s decision to lower its rates next year has been lauded by the Insurance Brokers Association of BC (IBABC), which represents over 800 brokerages throughout the province.
“The NDP government has been working hard to find ways to bring ICBC back to financial stability while at the same time working to reduce the cost of auto insurance for consumers,” said IBABC president Aly Kanji.
Kanji added that the IBABC is fully supportive of ICBC’s switch to the Enhanced Care model, especially since it benefits consumers.
“We support ICBC’s transition to Enhanced Care, and we’re happy to see any cost savings passed on to the consumers,” Kanji said. “It’s an added bonus for the public to realize some of those cost savings sooner.”
The IBABC stated that Enhanced Care will bring increased benefits and cost savings, and that it believes it is a system that “works better overall for drivers in the province.”
“The NDP government and ICBC have taken the best steps available to them to bring costs under control and start translating that into savings for auto-insurance consumers,” said IBABC executive director Chuck Byrne. “BC’s insurance brokers continue to advocate for their clients by providing advice and services to their clients along with the right coverage for their needs.”
