AUTO insurance rates will likely be rising by an average of $27 next year, pending the approval of the British Columbia Utilities Commission.
The Insurance Corporation of B.C. submitted an application last week to increase its basic rates by an average of $68.
If approved, the new rates would go into effect Feb. 1, 2012.
While basic rates may rise, ICBC also applied to lower its optional rates by an average of $41 per customer. The two figures average out to a $27 jump.
The hike is due to a $200-million increase in claims costs, primarily stemming from injuries, according to ICBC.
"This year, bodily injury costs will be approximately $1.7 billion - $350 million more than five years ago. This increase in costs is not sustainable without a rate increase," stated ICBC president Jon Schubert in a press release.
Schubert also projected a $90-million drop in investment income this year as part of the reason for the increase.
Overall, net income plummeted by $279 million in the first nine months of 2011, according to Schubert.
He made no mention of the "excess liability funds" appropriated from ICBC by the provincial government.
The decrease in optional rates is made possible primarily due to the continued drop in auto crime and material damage claims, according to a release from ICBC.
The increase is necessary despite a $26-million reduction in ICBC's operating costs this year, according to the release.
