Insurance rates going up 4.9 per cent as ICBC affordability reviewed

VICTORIA - Those who insure their vehicles in British Columbia will see a rate increase for basic insurance of 4.9 per cent.

A release from the B.C. government says it has directed the B.C. Utilities Commission to approve the rate for next year for the public auto insurer, but it wants to make sure that in the long term, the rates are in line with inflation.

Transport Minister Todd Stone also announced the province has launched a third-party review to make recommendations that will keep auto insurance rates affordable.

Stone says the goal is to put British Columbian drivers first and for the Insurance Corp. of B.C. to manage its cost pressures, ensuring rates are affordable in the long term.

The review comes as the frequency and severity of injury claims jumped, while the average cost of vehicle claims increased by 17 per cent between 2014 and 2015.

The province announced earlier this year that it would be doubling basic premiums for high-priced luxury vehicles and clamping down on fraud with a new detection tool.