ICBC rates to be frozen to 2025

In a move that will come as a relief to motorists around British Columbia, the provincial government is moving to freeze basic insurance rates through ICBC for the next two years.

The NDP government said the Crown Corporation can absorb the freeze and insists moves it has made in recent years ensures the public insurer is on a sound financial footing going forward.

If approved by the regulator, the British Columbia Utilities Commission (BCUC), it will mark five years of no increases to basic insurance rates.

"Our government is committed to keeping costs down for all British Columbians," Premier David Eby said at a media conference Monday. "Holding firm on ICBC's basic insurance rate for two more years will help millions of drivers with their monthly bills amid global inflation."

B.C. auto insurance rates among most affordable

The provincial government highlighted how insurance rates in British Columbia have gone from some of the most expensive in Canada to being among the most affordable.

They quoted a Canada-wide rate comparison report by Ernst & Young looking at 30 different driver profiles and compared how much auto insurance would cost in nine provinces across Canada. The report found that British Columbians pay among the lowest rates in Canada.

"A key priority with Enhanced Care was to make insurance rates more affordable and to keep them that way, and this rate application continues to deliver on that," Mike Farnworth, Minister of Public Safety and Solicitor General, said.

In support of ICBC's basic insurance rate application, government has provided direction to BCUC to ensure ICBC builds sufficient capital reserves, which paves the way for a two-year rate filing.

A media release from the government said along with more affordable and stable rates, Enhanced Care is providing British Columbians with some of the best care, recovery and income-replacement benefits available in Canada.

Under Enhanced Care, British Columbians injured in crashes can have peace of mind knowing they will be supported with benefits when they need them for as long as they need them.

Last year, the government brought in Enhanced Care, which, in most cases, denies the insurer’s ability to sue the other driver in ‘no-fault’ claims. It insists that is saving taxpayers millions of dollars that was previously going to lawyers.

Asked if he was using ICBC as a political tool - something he has criticized previous BC Liberal governments about - Eby said part of the application to the BCUC included making sure money is added to the reserves to make sure it’s there when it’s needed.

He stressed among the moves the NDP government has made in recent years was to make it against the law to move money from ICBC into provincial budgets.

“For many years government drew down those reserves to crisis levels, to pretend that things were okay at ICBC instead of making the difficult decisions to make sure that ICBC worked properly for British Columbians,” Eby said, accusing the BC Liberals of using ICBC “like an ATM pretending that budgets were balanced.”