According to ICBC, they have applied for a rate increase to basic insurance costs.
ICBC submitted its 2016 basic rate application with the British Columbia Utilities Commission, asking for a 4.9 per cent increase to basic insurance rates.
Last year there was a 5.5 per cent increase, adding an average of $60 per year.
If approved, ICBC estimates it will mean an average increase of $3.50 per month (or $42 per year) for personal customers’ basic insurance coverage.
“We certainly don’t like to have to ask our customers to pay more but these external pressures are very real and they have created a perfect storm which we are struggling to hold off,” said Mark Blucher, ICBC’s president and CEO. “We’ve worked hard to get this rate increase lower than last year’s but the amount of basic premiums we collect will still not cover the increasing amount we’re paying out in basic claims costs.”
To cover the costs of more crashes and more claims, ICBC states they would need to charge every customer approximately an extra $130 a year, which would have required a rate increase of 15.5 per cent.
Transportation and Infrastructure Minister Todd Stone issued a statement on the ICBC rate increase submission, which you can read here.
According to Transport Canada’s Canadian Motor Vehicle Traffic Collision Statistics report, collision and casualties Canada-wide have dramatically declined over the past two decades (up to 2014; 2015 stats were not available at the time that this article was published).
From the report’s Introduction:
“Transport Canada’s National Collision Database (NCDB) contains data on all reportable motor vehicle collisions in Canada that the provinces and territories provide each year. The federal, provincial and territorial governments in Canada work to improve road safety to reduce the number of fatalities and serious injuries and to have the safest roads in the world. The year 2014 saw a decrease in the number of fatalities, serious injuries, and total injuries; in fact, 2014 marked the lowest counts for all three of these casualty groups since these data were first collected by Transport Canada in the early 1970’s.”