B.C. Utilities Commission approves rate reduction
ICBC will reduce its basic insurance rates by 2.4% beginning November 1, 2010, following a decision from the British Columbia Utilities Commission (BCUC), which is responsible for regulating basic insurance rates in the province.
"Any reduction in our insurance rates is good news for our customers and we thank them for their smart driving decisions that have made this possible," said Jon Schubert, ICBC's President and CEO. "At a time when the price of everything seems to be going up, ICBC's insurance rates are once again coming down."
In announcing the reduction, the Commission noted that ICBC's operating expenses were, on average, 2.8% lower than forecasted over the past few years. This careful management of operating costs will be passed on to our customers in the form of an additional 0.5% rate reduction on top of the 1.9% in our application.
Rate changes are driven mainly by projected claims costs. Fewer crashes in B.C. have led to a drop in the number of claims; however, the average cost of injury claims, which are covered by basic insurance, continues to rise.
"This rate reduction is a significant development — it's the first time in more than a decade that we have been able to reduce our basic rates," said Schubert. "After years of fiscal restraint, and thanks to our customers safe driving and the hard work of our employees, we are able to further reduce our rates while reinvesting in the business to better serve our customers."
On a $1400 policy I recieved just over $20.00 reduction. This is not worth talking about.
ReplyDeleteIf their claim of a 2.4% reduction is correct and applies across the board a $1400 policy should see a reduction of $33.60.
ReplyDeleteIt isn't something to get all excited about, but I guess it's better than nothing, or worse still, going up by $33.60.