B.C. Utilities Commisssion confirms auto rate increase

The B.C. Utilities Commission has confirmed a 6.5% increase that came into effect on an interim basis on Mar. 15, 2006.”ICBC is committed to keeping auto insurance rates low and stable,” Donnie Wing, ICBC’s senior vice president of insurance, marketing and underwriting, said. “But the fact of the matter is that the cost of claims is rising, particularly payouts for injury claims. Rates are increasing to cover those rising costs.”Given this trend of rising claims costs, ICBC says it “expects basic insurance rates will need to increase again in 2007.”Motorists can all play a part in controlling costs “by continuing their efforts to drive safely [and] reducing the carnage on BC’s roads,” Wing said.Each year, approximately 400 people are killed and 78,000 people are injured on B.C. roads.”We are currently involved in a campaign against speed and aggressive driving, targeting irresponsible drivers who are causing claims costs to rise,” Wing said. “The campaign involves enhanced enforcement by the police, backed up by raising public awareness.”ICBC’s rates and service levels for basic coverage are regulated by the commission. The review by the commission is a public process involving hearings and a detailed examination of ICBC’s arguments by the commission and interested parties.