Premier tells ICBC to park basic rate hikes at 4.9 per cent

SURREY (NEWS 1130) – Premier Christy Clark wants ICBC to park basic car insurance rate hikes at 4.9 per cent, saying families can’t afford any more massive increases.

“I think ICBC should keep the rates at a 4.9 per cent increase which is what the [provincial] government is committed to doing for this next round,” Clark says. “People cannot afford these massive rate increases,”

Clark’s demand comes months after ICBC applied to the BC Utilities Commission for a 4.9 per cent rate hike. The commission, which oversees ICBC and approves rate increases, asked ICBC for projections of what rates would look like for the next four years.

ICBC refused to provide the information, saying it’s confidential and speculation “could be taken out of context” by the public.

Clark says ICBC can continue to speculate what rates could be, but it won’t work for long.

“I am fighting for the rate-payers, the people who drive cars and who buy insurance. And the moms and dads who are already finding life unaffordable. We have set the goal for 4.9 per cent and that’s where I want it to land,” she says.

In a way, NDP critic Adrian Dix echoes the premier’s comments. He’s also blasting ICBC for withholding the predictions. “ICBC is 100 per cent owned by the public and 100 per cent of BC drivers buy basic auto insurance from it. ICBC has an obligation to tell the truth to the Utilities Commission.”

BCUC gave ICBC until 4:30 p.m. tomorrow to release its projections. Dix says the public will get a better idea of the impact of the government’s transfers from ICBC’s coffers.

A 4.9 per cent hike would add $3.50 a month to the average auto insurance bill, or $42 a year. As it has said for several years, ICBC says the increase is needed to cover rising costs from crashes, claims, injuries and settlements.