Burnaby, British Columbia – Drivers in British Columbia can expect their auto insurance rates to rise by an average of $27 per year in 2012, when the basic insurance increase is combined with an accompanying decrease to optional insurance rates.
The Insurance Corporation of British Columbia (ICBC) has submitted an application to increase its basic insurance rates but confirms that optional rates will fall.
“The only way to fully understand these rate changes and the impact on our customers, one must look at them in combination,” said Jon Schubert, president and CEO of ICBC. “If you look at just the basic or optional change in isolation, then it gives you an incomplete picture for the majority of our customers who write one cheque for their insurance policy.”
In its application, ICBC will ask for an average basic insurance increase of 11.2 per cent per customer, or $68, which will be reduced by an average decrease in its optional insurance rates of 6 per cent, or $41. When the rate changes are combined, customers who purchase their full personal vehicle insurance coverage from ICBC will see an average rate increase of 2.1 per cent, or $27.
The $27 increase is an average for approximately 80 per cent of ICBC’s personal insurance customers, the company said. Individual premiums are based on factors such as claims history, type and use of vehicle, where the person lives, years of driving experience and level of coverage purchased.