Auto insurance rates in B.C. could spike 30 per cent without overhaul: report
VANCOUVER — British Columbians may have to pay 30 per cent more for auto insurance unless the provincial government makes big changes to how it runs a Crown corporation, a new report suggests.
A report by Ernst & Young, commissioned under the previous government and released Monday, says a massive overhaul to the Insurance Corp. of B.C. must happen immediately in order to avoid steep rate hikes forecast over the next two years.
“B.C.’s auto insurance system is facing unprecedented challenges,” says the report. “The average driver in B.C. may need to pay almost $2,000 in annual total premiums for auto insurance by 2019.”
The report points to a spike in the number of car crashes and a jump in the cost of vehicle repairs and injury claims as two of the main reasons for growing financial pressure at the Crown corporation.