VANCOUVER - The Insurance Corporation of B.C. is chopping optional insurance rates by three per cent while leaving basic rates for 2009 unchanged.
The reduction comes despite ICBC's net income falling 23 per cent last year to $497 million, down by $145 million from 2007.
Basic rate insurance is what every driver needs to be on the road. It covers people and cars involved in a crash, providing up to $200,000 in vehicle repair, medical claims and wage replacement.
Optional insurance is available to protect a driver in the case of self-caused damage, theft, and it covers the cost of towing, storage and salvage disposal, if needed.
Company president Jon Schubert says ICBC can afford to reduce optional rates because insurance claims are down and company investments have done well.
He says the investments generated a rate of return of just over one per cent last year amid the economic meltdown.
Schubert says in addition to cutting rates, ICBC will be able to sock away more money to help cushion customers' rates during what he calls volatile economic times.
The rate cut must be approved by the B.C. Utilities Commission.
