B.C. Utilities Commission approves ICBC basic rate application on interim basis

At the end of the regulatory process, the BCUC will reach a final decision on ICBC’s basic rate application. The BCUC will determine how any difference between the approved interim rate and permanent rate will be refunded or collected at the time of its final decision.

The province has also directed BCUC to ensure ICBC builds sufficient capital reserves, to ensure rates remain unchanged over the two years.

In other matters related to the provincial insurer, ICBC has been promoting a new distance-based discount for motorists in 2023 through flyers in insurance renewal reminders through the mail, but there are strings attached in order to qualify.

ICBC claims that motorists who drive less than 10,000 kilometers in a year could qualify for additional discounts.

“We’re introducing a new distance-based discount in 2023, as we begin to offer more usage-based insurance,” ICBC previously wrote on its website. “If you drive less than 10,000 kilometers in a year, submit your odometer reading to potentially get a discount on your ICBC optional insurance next year.”

ICBC anticipates that approximately 40 percent of customers with vehicles in eligible rate classes will qualify for this “distance-based” discount.

However, there’s a huge caveat involved. To qualify for this new discount in 2023, motorists may be eligible if they drive less than 10,000 kilometers a year, provide two odometer readings a year apart, as proof of driving distance, have a 12-month Autoplan policy with ICBC optional coverage, and have a vehicle within an eligible rate class. Most vehicles are eligible for the discount, but some vehicles like motorcycles, motor homes, and collector vehicles don’t qualify.

The kicker involves the requirement that motorists have ICBC optional coverage, which consists of optional features like loss of use if a vehicle can’t be driven after a crash, rental vehicle coverage, vehicle travel protection, lock rekeying, emergency roadside expense repayment, theft deductible waiver, and destination assistance. These are extra and tack on additional costs at renewal time.

The qualifying period for the distance-based discount starts when motorists provide the first vehicle odometer reading at their annual renewal or when a new policy is purchase. In a year’s time, at the next renewal date, the odometer reading will need to be provided again to determine if the vehicle was driven less than 10,000 kilometres during the year, ICBC says.

If motorists are eligible, a discount ranging between 5 and 15 percent will then be applied to select ICBC optional coverages on renewed policies. The less a person drives, the greater the discount. If motorists exceed 10,000 kilometers in the prior 12 months, they won’t be eligible for a discount won’t be charged more for driving more either.

The distance-based discount is different from ICBC’s existing low-kilometre discount, which is for vehicles driven less than 5,000 kilometers in a year and is applied to basic insurance and extended third party liability and collision coverage, if motorists have it. If customers are already eligible for the low-kilometre discount, they’ll likely be eligible for the distance-based discount as well, since they may apply to different coverages and may be higher.

by Mike Vanden Bosch

B.C. Utilities Commission approves ICBC basic rate application on interim basis

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