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Home / 2017 / ICBC rate hikes announced

ICBC rate hikes announced
Courtesy of the Ministry of Transportation

ICBC rate hikes announced

Drivers in BC can expect a rate hike with ICBC- but not 20 per cent that was suggested.

David Eby, Attorney General and Minister in charge of ICBC says that although the report from the previous administration suggests a double-digit rate increase, the NDP government is looking at a lot of work ahead of them with smaller increases and more work on roads and behind the scenes.

For basic rates, drivers can expect a 6.4 per cent increase- which should equal about $57 per year. Blended rates- the rate that applys to people who also purchase optional insurance- should experience an increase of 8 per cent, equalling $130 annually.

Eby argues that the previous Liberal government used the crown corporation as a piggy bank to balance their budgets, ultimately tapping in to all of the savings that would have avoided these rate increases.

These slight increases in rates, balanced with other initiatives like increases in times red light cameras are active, a distracted driving technology pilot, distracted driving campaigns, dangerous roads initiatives and administration overhauls will help lower the amount of accidents that happen and reduce the amount rates will increase in the future.

ICBC had their largest financial loss in the organization’s history last year, losing more than half-a-billion dollars in 12 months.

For many, the state of ICBC comes as a shock. Eby says that when he was put in charge of the situation that he felt the same way as wondered how the information had been withheld from the public for so long.

These deceptions, along with raided savings and deferring claims has resulted in the uncertainty of the future of ICBC.

Eby noted that legislation passed in 2010 allowed government to take unprecedented levels of cash out of ICBC. After that regulation was introduced, $1.2 billion was removed from ICBC and put into government’s general revenue.

The NDP government has stated they are not looking at a no-fault system, and are launching a full audit and review of ICBC. Eby says he plans on updating the public as decisions are made and that this one will be the first of many in the next months and years under the new government.

 

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