A new report warns that British Columbia drivers may have to pay 30% more for auto insurance unless the provincial government makes big changes.
The study by Ernst & Young says a massive overhaul to the Insurance Corp. of British Columbia needs to start now in order to avoid drastic rate hikes that are forecast over the next two years.
The report says changes could include bringing back photo radar, capping payments for pain and suffering and making high-risk drivers pay more.
“We have all been paying higher insurance premiums because the government demands a kick-back of a billion or more from ICBC so they can pretend we have the lowest income tax rates in the country,” says Traffic Safety Expert Chris Foord on C-FAX. “We need to take the politics out of it.”
The Crown Corporation commissioned the report before the NDP defeated the incumbent Liberals in May.
Attorney General and Minister Responsible for ICBC, David Eby, says the NDP are committed to fixing systemic financial problems at ICBC but is clear the NDP's not considering photo radar or moving to a no-fault system for auto insurance.
(With Files from the Canadian Press)