The NDP is criticizing B.C.’s Liberals following the recent announcement on the province’s car insurance rates, claiming that the government should have acted sooner to implement changes and avoid its current predicament.
The Insurance Corporation of B.C. (ICBC) recently revealed its projections for the next four years, saying that by 2020 auto insurance rates in the region would surge by a staggering 42%. On Tuesday, Transportation Minister Todd Stone announced that ICBC will soon drop insurance for luxury cars that cost more than $150,000 to offset the projected steep rates. This would force luxury car owners to seek coverage from private insurers.
Although NDP MLA Adrian Dix commended the decision to drop coverage for luxury cars, he claimed that it would do little to stem the rise in rates.
“It’s a small measure, it’s a useful measure — but it comes four years too late,” Dix told
CBC News. “For the last four years, since the last time ICBC adjusted their risk formula ... they’re telling us that we’ve been subsidizing cars that are worth more than $150,000.”
Dix argued that the measure was only introduced after the province was pressured from the B.C. Utilities Commission to publicly disclose yearly rate increases.
“They only acted because the Utilities Commission told them to tell the truth,” he explained.
According to the ICBC’s projections, rates could go up 6.4% in 2017, 7.9% in 2018, 9.4% in 2019 and 7.9% in 2020.
Related stories:
B.C public insurer bows to pressure to release rate projections
ICBC to drop luxury car coverage
