VANCOUVER (NEWS 1130) – Basic insurance rates are going up at ICBC — for now.
The BC Utilities Commission has given the green light for ICBC to hike basic insurance rates by 6.3 per cent on an interim basis.
This will affect all new and renewed policies, starting April 1, 2019.
The BCUC is reviewing ICBC’s full application for the rate increase.
BCUC says this "will lessen the depletion of ICBC's already low basic insurance capital while the BCUC reviews the full application." Says will determine if any difference between interim and permanent rates will be refunded or collected when it makes final decision #bcpoli
— Lasia Kretzel (@lkretzel1130) January 2, 2019
“The approval of ICBC’s basic rate change on an interim basis is consistent with past applications and will lessen the depletion of ICBC’s already low basic insurance capital while the BCUC reviews the full application,” ICBC said in a statement.
This comes just less than a month after the insurer posted a net loss of more than half a billion dollars last month, projecting that number to hit more than $890 million by year’s end.
This year’s loss is on top of more than a billion dollars lost last year and ICBC staff say rate hikes could have been 40 per cent if efforts hadn’t been made over the past year to curb costs.
Now that the interim hike has been approved, drivers can expect to pay at least $60 more for insurance.
The hike also comes a year after B.C. Attorney General David Eby called the company’s financial situation a “flaming dumpster fire.”
-With files from Estefania Duran