ICBC says basic rates could rise 42% by 2020 in worst-case scenario

Skyrocketing claims, increases in cases of insurance fraud and more injury claims haveledICBC to project a worst-case scenario rate increase of 42 per cent by 2020.

ICBCreleased the long-term projections Wednesday under pressure from the B.C. Utilities Commission.

The insurer is projecting rates will go up 4.9 per centin 2016, 6.4 per centin 2017, 7.9 per centin 2018,9.4 per centin 2019 and 7.9 per cent in 2020.

ICBC has also provided best-case scenario figures under which rates would only go up 15.8 in the same period.

In order to show British Columbians it is trying to keep rates down, the provincial government has announced plans to no longer insureluxury cars.

Once the legislation is passed, owners of personal vehicles selling for more than $150,000 will have to get private insurance.

Figures from the province provided by ICBCshow luxury cars are six times more expensive to fix than the average passenger vehicle.

On Wednesday, Transportation Minister Todd Stone said that repairinga fender, grill, headlightsand intercooler ona Bentley Flying Spur would be about $38,000.

"This is putting an unfair burden on the vast majority of the other ratepayers who are subsidizing this particular rate class through their premiums. This has to end," saidStone. "

ICBC rates up 30% since 2011

The provincial government has been facing criticism over ICBC rates that have gone up more than 30 per centsince Premier Christy Clark took office.

The province could not project how much money it would save by not insuring luxury cars but pointed out luxury car ownership hadgone up by 30 per cent in the last threeyears.

Currently, luxury car owners pay about the same basic rate as the owner of a $15,000 car, the average value ofa passenger vehicle in B.C.

Before the legislation is put in place, the province says it will increase rates for luxury car owners 'as soon as possible' that could see them pay double the insurance they pay now.

"This new rule will apply to private passenger vehicles only.It will not apply to pickup trucks or limousines or RVs," said Stone. "This is a move to protect the middle-class ratepayer and provide basic fairness."

NDP say change is a distraction

NDP criticAdrian Dix said the province is introducingthe luxury car insurance change, not to help families but in order to "throw smoke" on the issue to distract ratepayers from the projected long-term increase.

"This was raced out because they have beencaughtmisleading the public. They can't be allowed to get away with this nonsense," said Dix.

"That 42 per cent they own it and they need to take responsibility for it."