In a recent move by then BC utilities regulator, and as per a request by the Insurance Corporation of BC (ICBC), BC residents are soon to see a 15% reduction in all basic insurance rates.

The plan being, that this initial 15% decrease will act as a short-term percentage reduction and will begin on May 1, 2021. Following that, the province’s Utilities Commission will determine a more permanent rate moving forward.

With this being the most significant rate reduction in approximately 40 years, this definitely shows that there is some light at the end of the tunnel for BC car owners.

To fully put these high rates into perspective, the Insurance Bureau of Canada (IBC) reports BC annual average insurance rates as high as $1832. Next in line is Ontario, who sits at a slightly lower rate of $1528. In rather drastic comparison, we have Quebec with the lowest of these premiums at $717 per year.

With BC insurance premiums currently sitting at the highest among all other provinces, these reduced rates will look to ensure that BC residents also have access to more affordable vehicle insurance. Ultimately, this change is set to place them more on par with other provinces, like Ontario or even Alberta, who’s residents by comparison experience yearly rates of approximately $1316.

This move not only looks to lower these rates, however, it also involves the reallocation of substantial funds, in the hundreds of million dollar range. Currently, these finds are being used towards insurance legal fees, and moving forward, they will be used towards cases where individuals have sustained injuries as a result of vehicle collisions or crashes.

Overall, it is expected that these changes will translate into a 20% reduction in provincial premium claims, with an average decrease of $400 each year.

Another move made by the ICBC will see rebates being offered to drivers to offset the cost of current rates as a stopgap until May, when the lower rates take effect.

While these rebates will still have to go through one final approval process with the provincial insurance commission, there is reason to remain positive that BC drivers we be able to take advantage of the rebates as soon as possible as more affordable insurance rates are just around the corner.

Turning to an insurance expert is an effective way to learn even more about these upcoming changes.

At Leaders Insurance, we are here to provide the most up-to-date information on car insurance premiums in BC.  Contact us to learn more about these developments and together, we can find the car insurance package that is right for you.