Auto Insurance Changes In B.C. Come Into Force April 1, 2019
by adminAccording to ICBC, auto insurance in BC faces serious problems, with injury claims, legal costs and car repair costs being at an all-time high. In order to address those high costs, auto insurance changes in BC will come into force on April 1, 2019, in an effort to make rates “more fair” for everyone.
One large change ICBC is implementing is a $5,500 cap on pain and suffering regarding payouts to vehicle accident victims. According to ICBC, improving the care for people injured in a crash is a top priority and these changes will better help people get the care and support they need. It is hoped that by taking steps to reduce legal costs, that they will be able to increase accident benefits, giving people more choice and better access to care.
ICBC provides universal auto insurance to BC motorists and has suffered a net loss of $1.3 billion for the 2017 – 2018 fiscal year. Without any changes, the Crown Corporation warned that BC drivers would likely face premium increases of $400 or more. In an attempt to keep the cost increase to drivers a little more manageable, the provincial government stepped up and will implement the following changes on April 1, 2019.
A new limit for minor injury claims
The cost of pain and suffering injury claims has increased 264 per cent since 2000, leaving BC as the last province to take action against rising costs.
Medical care and recovery cost allowance will be doubled
Under the new auto insurance changes in B.C., the increased overall medical care and recovery cost allowance will be doubled to $300,000. This change will be made retroactive to January 1, 2018, in order to protect injured drivers and passengers immediately. According to ICBC, these accident benefits cover a greater variety of treatment services and include the following accident benefit improvements:
- Wage loss – $740 per week
- Home support – $280 per week
- Funeral costs – $7,500
- Death benefits – $30,000
An independent dispute resolution process for certain motor vehicle injury claims will also be established.
The auto insurance changes in B.C. the come into force in April are expected to save ICBC $1 billion a year and help address the crown corporation’s financial crisis. ICBC has assured drivers that the amendments will still keep insurance affordable, while providing enhanced care for injured individuals. For more information, visit ICBC’s website.