BC drivers could see insurance rates go up
Posted March 24, 2011 8:49 am.
This article is more than 5 years old.
VANCOUVER (NEWS1130) – We may be seeing a hike in insurance rates over an increased number of crash injuries.
ICBC says it paid out around $1.5 billion to people hurt in accidents last year. That’s on top of a 25 per cent spike in payouts for average injury claims between 2006 and 2010.
BC’s public insurer is concerned that the number of bodily injury claims climbed about five per cent between 2009 and 2010.
The Corporation’s Adam Grossman says the trend is just the opposite of what we saw a few years back when the number of insurance claims was down. “Whereas in previous year, we were seeing a decrease in the number of bodily injury claims. That’s actually reversed. So what we’re seeing is dual pressure. We’re seeing the cost of the average bodily injury claim increase, and now also the number of bodily injury claims increasing, so that is something we need to keep a very close eye on this year.”
He says it’s not that we’re seeing more car crashes like fender-benders, but the serious accidents are costing the Corporation more money. “The overall claims picture looks very good. What we’re focusing on just here is bodily injury claims, and they can be particularly worrying because they are the claims that can actually total up to a lot of dollars. Unfortunately, bodily injury payments can be fairly high when people need ongoing medical care.”
Last year, ICBC slashed basic insurance rates by 2.4 per cent thanks to lower than expected payouts. There was also a three per cent reduction to optional rates.
Grossman says any proposed hike to the basic insurance rate would have to be approved by the BC Utilities Commission and that usually happens in May.
