Insurance Corporation of British Columbia (ICBC) has applied to the British Columbia Utilities Commission (BCUC) to reduce the basic insurance rates by an average of 1.9%, effective November 1, 2010.
The company said that as the number of claims have gone down, the cost of average claim including bodily injury claims that are covered by basic insurance side of business, continues to increase which put pressure on the basic insurance rate reduction.
ICBC has kept basic insurance rates unchanged for the last two years.
In addition, customers who have purchased the same basic and optional insurance coverage over past five years have seen rate reduction on an average.
The proposed 1.9% reduction in basic insurance rates still requires the approval of the BCUC.
Jon Schubert, president and CEO of ICBC, said: “Rate changes are mainly driven by claims costs, and fewer crashes help us keep our rates low and stable. Our customers are the ones to primarily thank for this reduction, it’s their smart driving that has helped us control our claims costs and apply for this rate reduction.”