'Drive safely or pay,' says ICBC
VANCOUVER, March 13 /CNW/ - ICBC rates will continue to be low and stable
through 2007, with better rates on the horizon for lower-risk customers.
"This year, rates are going down or staying roughly the same for half of
BC motorists who buy their basic and optional coverage from ICBC," said Paul
Taylor, ICBC's president and CEO. "For the majority of customers who choose
ICBC for their optional coverage, overall rates in 2007 will be approximately
the same as they were in 2004."
The following outlines rate changes for 2007:
- An average 3.8 per cent decrease in rates for optional coverage will
be implemented in May. Most customers who buy their private passenger
optional insurance from ICBC will see a decrease in their optional
- A 3.3 per cent increase in rates for basic insurance is being
recommended to the BC Utilities Commission later this month. This is
to address the estimated increase of three to four per cent in future
bodily injury claims costs. ICBC will be seeking interim approval for
the rate change effective in May.
For implementation in 2008, ICBC is also proposing rate design changes
for basic insurance that target higher-risk drivers. This plan will be filed
with the BCUC and, if approved:
- High-risk drivers will pay hundreds, and in some cases thousands, of
dollars more for their insurance which will translate into savings
for lower-risk customers. Up to 145,000 drivers with convictions for
behaviour with the strongest links to causing crashes will pay the
additional premium. High-risk drivers cause more crashes,
particularly more serious and costly crashes involving injuries and
- About 10 per cent of customers whose vehicle is used by other drivers
will pay a modest additional premium. The $25 premium will be applied
if one of the other drivers' experience or crash history is worse
than that of the principal operator. One in four crashes involves a
driver who is not the principal operator listed on the insurance
"Higher rates for high-risk drivers means benefits for good drivers,"
said Taylor. "Drivers need to drive more safely or they will pay higher
During the coming months ICBC's proposals to the BCUC will go through a
public process led by the Commission, with a final decision expected later in
Backgrounders and more information available at www.icbc.com.
For further information:
For further information: Doug McClelland, (604) 982-2476; Doug Henderson