The premium predictions ICBC wanted to keep secret from the public have been released. In one scenario, basic rates would increase 4.9 per cent this year, 6.4 per cent next year, 7.9 per cent in 2018, 9.4 per cent in 2019 and 7.9 per cent in 2020, compounding to 42.2 per cent.
VANCOUVER – The BC government’s public vehicle insurer is looking to gouge customers with a whopping 42 percent increase in basic insurance over five years, according to documents released this week.
Basic insurance premiums for B.C. drivers could increase by as much as 42 per cent over the next five years, according to eye-opening numbers released by the province’s public insurer.
On Wednesday, the Insurance Corporation of British Columbia outlined three hypothetical scenarios for rate increases in a letter reluctantly submitted to the B.C. Utilities Commission, which is responsible for approving any potential hikes, reported CBC News.
In one scenario, basic rates would increase 4.9 per cent this year, 6.4 per cent next year, 7.9 per cent in 2018, 9.4 per cent in 2019 and 7.9 per cent in 2020, compounding to 42.2 per cent.
The other two would result in compounded increases of 37.2 per cent and 26.6 per cent over the same period.
In its letter, ICBC argued the hypothetical scenarios, which were ordered by the BCUC, represent “inaccurate depictions” of where rates could go in the coming years.
“ICBC believes in supporting its policyholders by keeping Basic rates as low and affordable as possible. It believes there is harm associated with publication of a response that paints a misleading picture, and is concerned about the potential confusion hypothetical scenarios will cause for customers,” Nicolas Jiminez, vice-president of insurance strategy, wrote.
Prior to submitting the letter, ICBC had been fighting with the commission to keep the potential rate increases private, arguing they could be taken out of context.
Shortly after the numbers were released, Transportation Minister Todd Stone held a news conference where he attempted quell potential concerns from the public.
“The BCUC asked ICBC to do some rate modeling based on an extreme, worst-case, hypothetical situation, and these numbers have now been made public,” Stone said.
“I want to reassure the public that these are extreme projections that do not consider the actions that the B.C. government and ICBC are taking to reduce the pressure on rates.”
On the same day, the province also announced it would stop insuring any high-end luxury cars worth $150,000 or more in an attempt to save money for the average ratepayer.
The Ministry of Transportation said there were 3,000 luxury cars insured over the past year, a 30 per cent increase over three years ago, and suggested it’s unfair for their owners to be paying similar rates to most motorists.
