ICBC Announces an Additional Cut in Premiums

On Wednesday, the Insurance Corp. of B. C. declared that optional car-insurance premiums will fall an average of 3% and this will take effect from Nov. 1.

The new cut down comes after a 2.4% slash was implemented on basic car insurance rates that were declared past month.

It is speculated that the combined cuts will help drivers save up to $80 million. Of these, $50 million will come from basic car insurance savings.

ICBC CEO, Jon Schubert said, "This is the third year in a row that our customers' combined insurance rates have gone down".

Considering that there are 3.1 million registered drivers in B. C., every driver will save an average of $16.13 in basic insurance, while $9.68 in optional insurance, due to the decreased rates.

Over a span of six years, optional insurance premiums plummeted by over 20%.

ICBC Spokesmen said that mostly, rates are determined by claim costs and less number of crashes has enabled to keep a check on these expenditures. This in turn, has made it feasible to announce several rate decreases over the past few years.

It is reported that in the year 2009, ICBC raised $3.65 billion in premiums and the number of crashes was 268,000.