ICBC seeks 5.2 per cent hike in basic auto insurance rates

Distracted drivers' use of personal electronics cited as factor in injury claims rise

ICBC will send refunds totaling $38 million to customers it overcharged since 2008.

ICBC will send refunds totaling $38 million to customers it overcharged since 2008.

ICBC is asking regulators to approve a 5.2 per cent increase in basic auto insurance rates.

The public auto insurer said the rate hike would cost the average customer an extra $40 per year if approved by the B.C. Utilities Commission.

The rate hike is to take effect Nov. 1 on an interim basis while the BCUC reviews the application.

A previously approved 5.2 per cent rate hike that took effect in 2013-14 means drivers will soon be paying 10.4 per cent more than they did in 2012 for basic coverage.

ICBC blamed the latest increase on a continued rise in injury claims costs paid to crash victims for pain and suffering, future care and lost wages.

Bodily injury claims hit $1.9 billion in 2013, up $73 million from 2012 and by more than $500 million from five years earlier. Legal and medical costs are also up.

Drivers’ rapidly growing use of cellphones and other personal electronic devices behind the wheel is one of the factors ICBC cited for the rise in injury claims.

Distracted driving is the second leading cause of fatal car crashes in B.C. – killing 88 people a year – and is the leading cause of rear-end crashes that often cause injuries, spokesman Adam Grossman said.

A new campaign against distracted driving is to roll out in September.

Grossman was unable to provide details justifying why basic rates should be 10.4 per cent higher than 2012 when the injury claim cost increase from 2012 to 2013 was only four per cent. The full rate hike application is to be filed Friday.

Consumers Association of Canada president Bruce Cran said it continues a pattern of steeper increases in basic rates on which ICBC has a monopoly but more restraint on optional coverage rates where it must compete.

He also took aim at the provincial government’s continued raiding of ICBC coffers for general revenue.

The province has budgeted to pull $200 million from ICBC this year, $155 million next year and $125 million in 2016, down from $237 million in 2013 and $576 million in 2010.

Cran said he doesn’t “give a damn” about ICBC and government claims the yearly dividends to the province come only from the optional side and don’t affect basic rates.

“We see it a as one corporation,” he said. “As long as they’re stealing our money by the million by transferring it into government revenues, no matter which division they claim it from, we are being gouged as a public.”

Cran called it a stealth tax on people who drive vehicles that is “absolutely disgraceful.”

ICBC RATE CHANGES and GOVT DIVIDENDS | Create Infographics

Just Posted

Harrison Hot Springs country singer Todd Richard poses for a photo with Mission firefighters. (Photo/Sarah Plawutski)
VIDEO: Harrison country artist Todd Richard plans for a busy, rockin’ summer

Richard and his band look to live shows as restrictions start to lift

The theme for this year’s Fraser Valley Regional Library Summer Reading Club is “Crack the Case” and Katie Burns, community librarian at the Chilliwack Library, is encouraging people of all ages to sign up. She is seen here at the Chilliwack Library on Friday, June 18, 2021. (Jenna Hauck/ Chilliwack Progress)
Crack the case, read, win prizes with FVRL Summer Reading Club

‘Immerse yourself in other worlds and have a bit of fun while you do it,’ says Chilliwack librarian

Cpl. Scott MacLeod and Police Service Dog Jago. Jago was killed in the line of duty on Thursday, June 17. (RCMP)
Abbotsford police, RCMP grieve 4-year-old service dog killed in line of duty

Jago killed by armed suspect during ‘high-risk’ incident in Alberta

Holger Schwichtenberg and his son Philip talk in the barn of the 150-acre Schwichtenberg farm. This farm is one of many throughout B.C. that support more than 12,500 jobs across the province in the dairy industry. (Contributed Photo/B.C. Dairy Association)
Agassiz dairy farm a model of care for environment, animals, and family

Farm is part of a dairy sector centred in the Fraser Valley, supporting 12,500 jobs province-wide

Marco Mendicino, Minister of Immigration, Refugees and Citizenship during a press conference in Ottawa on Thursday, May 13, 2021. THE CANADIAN PRESS/Sean Kilpatrick
Canada to welcome 45,000 refugees this year, says immigration minister

Canada plans to increase persons admitted from 23,500 to 45,000 and expedite permanent residency applications

FILE – Most lanes remain closed at the Peace Arch border crossing into the U.S. from Canada, where the shared border has been closed for nonessential travel in an effort to prevent the spread of the coronavirus, Thursday, May 7, 2020, in Blaine, Wash. The restrictions at the border took effect March 21, while allowing trade and other travel deemed essential to continue. (AP Photo/Elaine Thompson)
Feds to issue update on border measures for fully vaccinated Canadians, permanent residents

Border with U.S. to remain closed to most until at least July 21

A portion of the George Road wildfire burns near Lytton, B.C. in this Friday, June 18, 2021 handout photo. THE CANADIAN PRESS/HO, BC Wildfire Service *MANDATORY CREDIT*
Blaze near Lytton spread across steep terrain, says BC Wildfire Service

Fire began Wednesday and is suspected to be human-caused, but remains under investigation

(Black Press Media files)
Burnaby RCMP look for witnesses in hit-and-run that left motorcyclist dead

Investigators believe that the suspect vehicle rear-ended the motorcycle before fleeing the scene

Join Black Press Media and Do Some Good
Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Blair Lebsack, owner of RGE RD restaurant, poses for a portrait in the dining room, in Edmonton, Friday, June 18, 2021. Canadian restaurants are having to find ways to deal with the rising cost of food. THE CANADIAN PRESS/Jason Franson
Canadian restaurateurs grapple with rising food costs, menu prices expected to rise

Restaurants are a low margin industry, so there’s not a lot of room to work in additional costs

RCMP crest. (Black Press Media files)
Fort St. John man arrested after allegedly inviting sexual touching from children

Two children reported the incident to a trusted adult right away

Most Read