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 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

Kent honours late CAO with tree planting

Tony Lewis passed away in 2007, seven months before his retirement from the position

School trip tragedy leaves Hope mourning the loss of one of their own

Long-time resident, Sandra Loring, passed away while chaperoning a European school trip

Fraser Health reminds parents to get their kids fully vaccinated against measles

Health authority will send letters home to parents with catch-up program information

Chilliwack fatal hit-and-run case goes to B.C. Supreme Court

Linnea Labbee, 70, accused in Dec. 1, 2016 incident that killed 78-year-old Fourghozaman Firoozian

Gas prices in Metro Vancouver hit $1.72 a litre

And one analyst expects it to only go higher this week

VIDEO: Agassiz, Harrison celebrate National Pet Day

From cats and dogs to lizards and chickens, residents showed off the animals that enrich their lives

WATCH: South Vancouver Island shooting an ‘isolated and targeted’ incident, say police

One person in custody, another fled following shooting and crash on West Shore

Woe, Canada: Bruins down Maple Leafs 5-1 in Game 7

No Canadian teams left in Stanley Cup playoffs

Defence accuses officer of ‘incompetence’ in trial for B.C. man accused in daughters’ murder

Double murder trial for the Victoria father accused of killing his two young daughters continues

Should B.C. parents receive money if they make sure their kids are vaccinated?

New survey looks at public opinion around government’s role in forcing immunizations

Loud jets from Abbotsford are annoying residents of tiny U.S. town

Flights out of Abbotsford airport turn over border town and annoy residents, Sumas mayor says

Olympic auditions return to Lower Mainland

Event an opportunity for unknown athletes to shine and, maybe, change sports

B.C. men challenge constitutionality of Canada’s secret no-fly list

Parvkar Singh Dulai says he received a “denial of boarding” notification under the no-fly program last May 17

Murder on B.C. property didn’t need to be disclosed before sale, court rules

Buyer had tried to break contract after learning a man with ties to crime had been murdered there

Most Read