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 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

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Rendering of the proposed Esquimalt public safety building. (Courtesy Township of Esquimalt)
Esquimalt blazes new trail toward modern public safety building

Township using alternative approval process for first time to gauge public support for proposal

Landmarks such as Howard the giant gnome at Galey's Farm in Saanich make a stunning backdrop for celebratory dance in the Greater Victoria Festival Society trailer for its coming Dance Victoria campaign. (Screeshot/Greater Victoria Festival Society)
Residents’ videos help campaign Dance Across Victoria

Celebratory dance clips to be compiled into Greater Victoria Festival Society video

Reynolds Secondary School’s spring musical Freaky Friday features Grace Fouracre as teen Ellie Blake (left) who swaps bodies with her overworked mother, Katherine, played by Nadia Lurie. (Photo courtesy Reynolds Secondary School)
Saanich high school goes virtual with Freaky Friday musical

Reynolds Secondary theatre program to livestream performances March 9-12

Saanich Fire Department. Black Press Media File Photo
Fire displaces three Saanich families from two homes

Saanich firefighters found the fire had spread to a neighbouring home upon arriving

Ronald Schinners, owner of The Cabbie in the #YYJ, opened his taxi service in the West Shore last month. (Dawn Gibson/News Staff)
‘One man show,’ The Cabbie in the #YYJ cultivates 45,000 followers on Instagram

New taxi company brings unusual spunk to the West Shore

Elvira D’Angelo, 92, waits to receive her COVID-19 vaccination shot at a clinic in Montreal, Sunday, March 7, 2021, as the COVID-19 pandemic continues in Canada and around the world. THE CANADIAN PRESS/Graham Hughes
‘It’s been a good week’: Tam hopeful on vaccines as pandemic anniversary nears

Tam says the addition of two new vaccines will help Canadians get immunized faster

(The Canadian Press)
‘Worse than Sept. 11, SARS and financial crisis combined’: Tourism industry in crisis

Travel services saw the biggest drop in active businesses with 31 per cent fewer firms operating

The Port Alice pulp mill has been dormant since 2015. (North Island Gazette file photo)
Parts recycled, life returning to inlet as as old Port Alice mill decommissioned

Bankruptcy company oversees de-risking the site, water treatment and environmental monitoring

The Conservation Officers Service is warning aquarium users after invasive and potentially destructive mussels were found in moss balls from a pet store. (BC Conservation Officers Service/Facebook)
Aquarium users in B.C. warned after invasive mussels found at pet store

Conservation officers were told the mussels were found in a moss ball from a Terrace pet store.

Hockey hall-of-fame legend Wayne Gretzky, right, watches the casket of his father, Walter Gretzky, as it is carried from the church during a funeral service in Brantford, Ont., Saturday, March 6, 2021. HE CANADIAN PRESS/Nathan Denette
Walter Gretzky remembered as a man with a ‘heart of gold’ at funeral

The famous hockey father died Thursday at age 82 after battling Parkinson’s disease

Donald Alan Sweet was once an all star CFL kicker who played for the Montreal Alouettes and Montreal Concordes over a 13-year career. Photo courtesy of Mission RCMP.
Ex-B.C. teacher who was CFL kicker charged with assault, sexual crimes against former students

Donald Sweet taught in Mission School District for 10 years, investigators seek further witnesses

(Black Press Media files)
Medicine gardens help Victoria’s Indigenous kids in care stay culturally connected

Traditional plants brought to the homes of Indigenous kids amid the COVID-19 pandemic

Personal protective equipment is seen in the COVID-19 intensive care unit at St. Paul’s hospital in downtown Vancouver. THE CANADIAN PRESS/Jonathan Hayward
$16.9 million invested to improve worker safety, strengthen B.C.’s food supply chain

Money to be used for social distancing, personal protective equipment, cleaning, and air circulation

Most Read