ICBC applies for reduction in basic auto rate

Insurance Corporation of British Columbia (ICBC) applied to reduce basic auto insurance rates by an average of 1.9%, effective Nov. 1, 2010.The proposed reduction still requires the approval of the British Columbia Utilities Commission (BCUC).”Rate changes are mainly driven by claims costs, and fewer crashes help us keep our rates low and stable,” said ICBC president and CEO Jon Schubert.While the number of claims have decreased, the cost of the average claim – particularly bodily injury claims that are covered by the basic insurance product – continues to increase, putting pressure on any basic insurance rate reduction, an ICBC release says.