The Insurance Corporation of British Columbia is applying for a 15 per cent reduction in basic insurance premiums for next year.
Its as it says most drivers could save as much as $400 when the new Enhanced Care – or no-fault – insurance model kicks in on May 1.
Public Safety Minister Mike Farnworth says if approved, this will be the largest basic rate decrease in B.C. in more than 40 years.
“A new auto-insurance system with more affordable premiums and greater care benefits is on the way for British Columbians,” he said. “British Columbians deserve auto insurance that is affordable and takes care of them when they need it, and this is exactly what Enhanced Care will deliver.”
“In moving to the Enhanced Care system, we are taking literally $1.5 billion that would have gone into fighting cases in court. That is a significant savings to the corporation. Its a significant savings in terms of being able to give lower rates to the motoring public in British Columbia.”
ICBC’s rate application will be for basic insurance rates only, though it says it will reduce the optional third-party liability rates starting Feb. 1, so people with that coverage through ICBC who renew on or after that date will see some savings then.
“ICBC is committed to more affordable insurance premiums and rate stability for British Columbians now and into the future,” said Nicolas Jimenez, the president and CEO of ICBC, noting the basic rate application will cover the next two years, while also ensuring ICBC can build a rate stabilization fund to ensure there aren’t large rate fluctuations in the future.
“The vast majority of British Columbians can expect to start seeing significant savings on their auto insurance in 2021.”
Farnworth adds when the new system takes effect, people will be given a one-time rebate based on the difference for any difference in insurance costs between their current policy and the new, cheaper policy.
“It will depend on how they pay their insurance,” he added. “So if you wrote by check or paid by cash, then you get the rebate in that form. If you did it on your credit card, then it will be credited back to your credit card.”
The Trial Lawyers Association of British Columbia say the switch to no-fault insurance will greatly diminish a person’s right to a fair financial settlement if they’re involved in a crash. The province says an injured driver will be able to sue if they are involved in a crash with someone who is charged with a criminal offence or if there is faulty work done to their vehicle by a body shop.
Customers will be able to use the beefed-up Civil Resolution Tribunal and can challenge decisions if there are concerns about the outcome.
