Friday , December 4 2020

Brace yourself for an ICBC rate hike

With ICBC losing so much money, B.C. drivers should continue to have a whack in the wallet at the requested annual hike, and an announcement is expected on Thursday or Friday.

David Eby is the most famous man that ICBC bank accounts burn up in a "financial dumpster fire" that threatened to stimulate the entire auto insurance corporation.

The Attorney General asked to do something to pour out the flames. But recently it seems that someone has thrown a couple of tires on the fire and doused it all in gasoline instead.

The dumpster fire is still tired and ICBC continues to lose huge amounts of money. The loss of the corporation reported recently for the first six months of the financial year was staggering at $ 582 million.

That means that ICBC is on track to lose more than $ 1 billion again this year, and the second loss would be a consecutive billion dollar as well.

If you want to put it in another way, consider that ICBC loses more than $ 3 million a day. That means that ICBC will lose around $ 9,000 in the four minutes, so it's taken to read this column.

Something has to give, and it will start this week.

The public car insurer has disclosed to disclose her annual rate rate hike requested, and an announcement is expected on Thursday or Friday.

With ICBC losing so much money, B.C. drivers should worry about whack into the wallet.

In the basic auto insurance category – mandatory for each B.C. drivers – the maximum allowable hike is 7.9 per cent.

The maximum possible increase by the ICBC "rate mitigation framework", which determines the annual hike at 1.5 percentage points above the previous year's increase (6.4 per cent).

ICBC's optional insurance products (such as collision and third party accountability) have an unlimited rate rate, so they could get older.

Like B.C. drivers are preparing to pay more, many have to be thinking when Eby intends to pull the fire out of the end.

The new year will answer that question.

According to Eby, one of the main causes of financial hemorrhaging ICBC is the cost of financial settlements for people suffering from minor injuries in car accidents.

Currently paying court for pain and suffering is unrestricted and it costs to ICBC a fortune: an average of $ 30,000 per case.

The government plans to support the maximum payment on just $ 5,500 but the cap does not start to April 1, 2019.

For British Columbia's personal injury lawyers, the April Fool jokes are crazy.

The lawyers have also seriously advertised to want a business before kicks. Advertising by personal injury law companies is currently record highlights.

Eby hopes that the pay caps and other cost savings measures will grow the dumpster fire once and for all. That would allow for further hikes to be more modest, which would suit the NDP government as other electoral attitudes.

Meanwhile, ICBC rates are rising again. The Liberals of the opposition will be angry, but Eby will remind the public that the Liberals use ICBC as a kissing bank, covering more than $ 1 billion of purchases and corporations to spend on other priorities .

They have good feedback to the Liberals assaults. But if Eby does not pull the fire soon, the New Democrats may be burned instead.

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