Savings in auto insurance take effect July 1



    Three percent average reduction in optional insurance rates

    VANCOUVER, June 26 /CNW/ - ICBC's personal optional insurance customers
will see their rates for optional coverage go down by an average of 3 per cent
effective July 1, 2008. Almost 71 per cent of customers who purchase both
their basic and optional insurance for their private passenger vehicles from
ICBC will see their combined rates decrease or stay roughly the same.
    ICBC announced the optional rate reduction earlier this year when it also
indicated there was no need for an additional basic rate change in 2008. A
recent reduction in some claims costs, in particular for vehicle theft, have
allowed for a decrease in optional rates this year.
    "Over the past five years ICBC has been able to hold the line or reduce
rates for our optional insurance customers," said Geri Prior, ICBC's president
and CEO. "Overall insurance rates for BC drivers continue to be low and
stable. Customers who have purchased the same basic and optional coverages
from ICBC over the last five years have seen only a $2 increase on average in
their premium over this period."
    The combined effect of basic and optional rate setting for 2008 means
that 56 per cent of private passenger vehicle customers will see a savings of
between $5 and $99 on their yearly insurance premiums, while 3 per cent will
save $100 or more. Twelve per cent of customers will see their rates stay
roughly the same.
    Optional insurance includes coverage for collision (the cost of repairing
your vehicle) and comprehensive (loss or damage other than that covered under
collision e.g. fire and theft), along with additional protection for the
registered owner and operator from third party liability.
    Basic insurance coverage provides the minimum required level of coverage
against claims for third parties for injury or other losses. It also protects
those involved in a crash, whether they are at fault or not, providing
specific medical, wage replacement and other benefits. More than 80 per cent
of all payouts for injures are under basic coverage.

    
                                 Background

    Savings for ICBC customers effective July 1, 2008

    For the 2.6 million customers who buy both their basic and optional
insurance for their private passenger vehicles from ICBC:

    -   1.8 million (almost 71 per cent of customers who choose ICBC) will
        see their combined rates go down or stay roughly the same in 2008.

    -   Of those, 1.15 million customers will pay $5 to $50 less for their
        insurance; 374,000 will save $50 or more and 81,000 will save $100 or
        more. A further 310,000 customers will see their rates stay roughly
        the same (no changes or +/- less than $5).

    -   For those whose rates will increase, the majority - 716,000 customers
        - will pay less than $50 more.

    -   Approximately 30,000 customers will see an increase of more than $50.

    The impact of changes in optional rates will vary from driver to driver;
the average yearly insurance savings will be $16.

    -------------------------------------------------------------------------
    Average Rate Changes for all vehicles, past five years
    -------------------------------------------------------------------------
    Basic Insurance
    -------------------------------------------------------------------------
     2008(*)           2007            2006            2005            2004
    -------------------------------------------------------------------------
    0.0%               3.3%            6.5%            0.0%            0.4%
    -------------------------------------------------------------------------
    Optional Insurance
    -------------------------------------------------------------------------
    2008(xx)           2007            2006            2005            2004
    -------------------------------------------------------------------------
      -3.0%           -3.8%            0.0%           -7.6%            0.4%
    -------------------------------------------------------------------------
    Combined
    -------------------------------------------------------------------------
    2008               2007            2006            2005            2004
    -------------------------------------------------------------------------
    -1.3%              0.2%            3.7%           -3.4%            0.4%
    -------------------------------------------------------------------------
    (*)  2008 rate plan for basic insurance
    (xx) 2008 optional rate reduction effective July 1, 2008
    





For further information:

For further information: Media contacts: Doug Henderson, (604) 982-1332

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