B.C. drivers will be paying 4.9 per cent more for ICBC insurance.

ICBC rates to go up by 4.9 per cent

The provincial government directed the rate approval for next year.

Those who insure their vehicles in B.C. will see a rate increase for basic insurance of 4.9 per cent.

The provincial government has directed the B.C. Utilities Commission to approve the rate for next year for ICBC, but it wants to make sure that in the long term, the rates are in line with inflation.

Transport Minister Todd Stone told reporters in a conference call that he acknowledges an increase of nearly five per cent year-over-year is not affordable for most families.

“I’ve heard the message loud and clear that people are worried about the increasing cost of living,” he said.

The minister announced the government has launched a third-party review to make recommendations that will keep auto insurance rates affordable in the long term.

Stone said the goal is to put British Columbia drivers first and for the Insurance Corp. of B.C. to manage its cost pressures and bring rate increases closer to the inflation rate.

He said the review will look at the entire spectrum of the insurer’s operations to come up with as many solutions as possible for reducing cost pressures.

“We can’t keep doing things the same way and expect a different outcome, so we’re prepared to change,” Stone said.

The minister said the government does not intend to move to a privatized model of insurance through this review.

The insurance provider has already begun the process to prepare for the review, and the third party is expected to be selected in the new year.

Stone said the aim is to have results of the review ready by early next summer to be able to effect the insurance provider’s next round of rate filing that is due in August.

The third-party review comes as the frequency and severity of injury claims jumped, while the average cost of vehicle claims increased by 17 per cent between 2014 and 2015.

The province announced earlier this year that it would be doubling basic premiums for high-priced luxury vehicles and clamping down on fraud with a new detection tool.

ICBC is the province’s public auto insurer and almost all drivers in the province must purchase basic auto insurance for their vehicle through the corporation.

The Canadian Press

Just Posted

Annual Langley bird count numbers drop

Bad weather likely cause, organizers say

Hugh Davis Way sign unveiled

The name of the pioneer and long-time Langley farmer now adorns road near his home

Ball hockey fundraiser to honour Langley man lost to cancer

Annual tournament at UBC aims to raise $45,000 this year

Crash clogs Hwy. 1 through Langley

Motor vehicle accident reported near Glover overpass

Langley lacrossers roughed up 22-12 during Calgary stopover

Next Saturday, Feb. 24, the team hosts a Vancouver Stealth Experience, inviting guests on the floor.

‘Feast Dish’ play deeply rooted in First Nations culture

Tho’owxiya: The Hungry Feast Dish comes to life in Fort Langley, Vancouver

How to keep local news visible in your Facebook feed

Facebook has changed the news feed to emphasize personal connections. You might see less news.

Canucks came out hot, beat Bruins 6-1

Loui Eriksson scores twice, catapulting Vancouver to a lopsided victory over Boston

Man who stole millions from Seabird Island band sentenced to 4.5 years jail

Stephen MacKinnon sentenced in Chilliwack court for stealing $2.3 million over eight years

B.C. man brings dog to court as ‘best witness’

Man is defending himself on charges of uttering threats, possessing weapon for dangerous purposes

Vancouver artist’s cartoon of Florida school shooting resonates

Cartoon shows football coach, one of the victims, meeting others killed in school shootings

Trudeau family arrives in India for state visit

Seven-day visit includes meeting with Indian Prime Minister Narendra Modi

Military seeks DNA experts to help ID missing war dead

Federal program recovers, identifies and arranges burials for Canada’s nearly 28,000 missing war dead

Most Read