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

FVRD chair calls B.C. incineration plan for Philippines waste ‘disturbing’

Metro Vancouver ‘uniquely capable’ of safely disposing of waste coming back to Canada, say officials

RCMP believe Missing Hope teenager was headed to Chilliwack

Keely Reeze Loewen, 18, last in contact with a family member on June 13

Chilliwack residents reminded to ‘stand by your pan’ after kitchen fire Tuesday

Unattended pot on stove leads to fire and smoke damage in McIntosh apartment unit

Session will help Chilliwack seniors with paperwork plans

The June 25 info session will cover POAs, wills, and more

Question period won’t change after Chilliwack trustee motion fails

Public participation will continue to be limited to items on the night’s agenda

VIDEO: ‘Avengers: Endgame’ to be re-released with new footage

‘Avatar’ holds global box office record at $2.788 billion, while ‘Endgame’ stands at $2.743 billion…

B.C. teen killed by falling tree near Victoria

Second youth also injured in freak incident during field trip at Camp Barnard near Sooke

Elias Pettersson wins Calder Trophy as NHL’s top rookie

Vancouver forward first Canuck to win award since Pavel Bure in 1992

VIDEO: Acknowledging skeptics, finance minister vows to build Trans Mountain project

Bill Morneau said he recognizes ‘huge amount of anxiety’ in Calgary over future of oil and gas sector

Shovels could be in the ground on Trans Mountain by September, CEO says

Ian Anderson points to weeks likely required for NEB to reinstate 2016 regulatory record

Scorpion gives birth after hitching ride in B.C. woman’s luggage

A Vancouver woman inadvertently brought the animal home from a trip to Cuba

RCMP allows officers to grow beards

Members can now wear beards and goatees, as long as they’re neatly groomed

Girl, 10, poisoned by carbon monoxide at B.C. campsite could soon return home

Lucille Beaurain died and daughter Micaela Walton, 10, was rushed to B.C. Children’s Hospital on May 18

30 years later: B.C. woman uses sidewalk chalk to reclaim site of her sexual assault

Vancouver woman didn’t think her powerful story, written in chalk, would ignite such support

Most Read