Spike in crashes spurs safe-driving campaign

ICBC blames rising number of collisions for latest rate hike

ICBC is set to launch a safe-driving campaign aimed at stemming the growing number of crashes in B.C., which it has cited as the reason for seeking a rate hike.

Adam Grossman, a spokesman for the Crown insurance corporation, refused to provide details before a launch event expected this week. But the campaign, which begins on Sept. 1, is expected to be similar to past efforts.

“We’ll be there alongside government and police,” Grossman said in an email.

Last week, the Insurance Corp. of B.C. announced it had filed for a 4.9 per cent increase in basic insurance rates.

That comes following last year’s 5.5 per cent increase.

If approved by the B.C. Utilities Commission, the increase works out to an additional $3.50 a month for basic insurance coverage, or $5 with extended third-party liability coverage, plus collision and/or comprehensive insurance.

ICBC CEO Mark Blucher blamed last week the higher number of crashes — a national trend, he maintained — and a higher number of claims being filed.

Over the past two years, ICBC said, the number of collisions in B.C. jumped by 15 per cent to 300,000 in 2015 from 260,000 in 2013.

The cost of repairs rose 17 per cent in 2015 from the previous year, to a total of $1.36 billion, while the number of vehicle damage claims have also gone up.

Between July 2015 to June 2016, 232,300 vehicle damage claims were filed, 23,700 more than just two years ago, and an increase of 11 per cent.

The B.C. government has backed the rate hike application, with Transportation Minister Todd Stone promising that Victoria would forgo about $160 million in dividends from ICBC to try to keep increases down.

Stone said the government was also directing ICBC to use $472 million generated by its optional insurance business to reduce the cost of basic insurance.