Vancouver, British Columbia – Drivers in British Columbia will see their basic insurance rates drop by 2.4 per cent, beginning in November 1, 2010. The announcement follows a decision from the British Columbia Utilities Commission (BCUC), which is responsible for regulating basic insurance rates in the province.
“Any reduction in our insurance rates is good news for our customers and we thank them for their smart driving decisions that have made this possible,” said Jon Schubert, president and CEO of ICBC. “At a time when the price of everything seems to be going up, ICBC’s insurance rates are once again coming down.”
The BCUC noted that ICBC’s operating expenses were, on average, 2.8 per cent lower than forecast over the past few years. This will be passed on to customers in the form of an additional 0.5 per cent rate reduction on top of the 1.9 per cent in the application.
Rate changes are driven mainly by projected claim costs. Fewer crashes in B.C. have led to a drop in the number of claims, although the average cost of injury claims, which are covered by basic insurance, continues to rise.