Blog

ICBC to Drop Coverage for Luxury Vehicles, but Rate Hikes Still Likely

In lieu of a report hypothesizing ICBC will have to spike rates by as much as 42% by 2020 to balance their books, the public insurance company has announced plans to discontinue coverage for high-end luxury vehicles. However, critics suggest this new plan won’t be the financial saving grace ICBC is hoping for, according to this news story in the Vancouver Sun.

Internal ICBC reports that the insurance company unsuccessfully attempted to keep confidential revealed that rate hikes could rise a compounded 42% by 2020 if ICBC can’t bring costs down.

In response, ICBC announced that owners of luxury vehicles that cost upwards of $150,000, excluding showroom and antique cars, will be forced to find private insurance coverage once the new law comes into effect.

Critics point out though that this move will only save ICBC about $2.3 million per year, which is easily overshadowed by the $472 million it needed to withdraw from reserve funds in order to meet government-mandated cap levels on coverage-rate increases.

Part of the source of ICBC’s problem is that they continue to go out of their way to challenge many legitimate personal-injury claims or provide undervalued claim offers to those hurt in an accident involving a motor vehicle, forcing many victims to fight for their rights to be protected when tragedy occurs.

At BLW Lawyers, we believe that you deserve to have your life and the security of you and your family’s livelihood secured. If you are ever injured in an incident with a motorist while driving a vehicle, riding a bicycle or just walking down the street, contact us today for a free consultation.

We are experienced personal-injury attorneys who never charge anything for our services if we don’t help you win or settle your case. Call us at 604-689-3883 or email us at info@BLWlawyers.com for more information.

This is a unique website which will require a more modern browser to work! Please upgrade today!