ICBC to cut basic insurance rates by 2.4%

B.C. Utilities Commission approves rate reduction

VANCOUVER, Aug. 31 /CNW/ - 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."

At ICBC, we have more than 5,000 employees committed to our 3.1 million customers and their safety on the road. We license and insure drivers and vehicles across the province through our service centres, plus a network of more than 900 independent brokers and government agent offices. Claims customers are served through local offices and our award-winning Dial-a-Claim call centre. We add value to B.C. communities - our road safety investments help create safer roads, lead to fewer crashes, and help keep our rates stable. To find out more, visit icbc.com.

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For further information: Media contacts: Mark Jan Vrem, 604-982-2476; Adam Grossman, 604-982-1332