ICBC announces rate cut for basic auto insurance

The Insurance Corp. of B.C. announced Monday it has applied to the British Columbia Utilities Commission to reduce basic insurance rates by an average of 1.9 per cent, effective Nov. 1, 2010.

"Rate changes are mainly driven by claims costs, and fewer crashes help us keep our rates low and stable," said ICBC's President and CEO, Jon Schubert in a media release. "Our customers are the ones to primarily thank for this reduction -- it's their smart driving that has helped us control our claims costs and apply for this rate reduction."

The number of claims filed across the province has been declining in the last three years: 992,000 claims were reported in 2007, as compared to 964,000 in 2008, and 946,000 in 2009, said spokesman Adam Grossman.

ICBC has 3.1 million drivers registered in B.C.

Last year, the insurance provider received $3.7 billion from premiums and a net income of $563 million, said Grossman. During the first quarter of 2010, it has made $155 million. If the 1.9 per cent reduction is approved, ICBC would lose $39 million in premiums. ICBC enacted a 3.3 per cent increase in insurance rates in 2007.


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Wisconsin motorists are now required to carry evidence of auto insurance

Beginning this week, the state of Wisconsin will not only require vehicle owners and drivers to have a valid car insurance policy, but they must also be able to prove it. Any motorist operating an automobile must have active coverage and keep identification cards in the vehicle at all times.

Effective June 1, 2010 motorists are required to obtain a motor vehicle liability policy with minimum limits of $50,000 for bodily injury to one person, $100,000 per accident and $15,000 for property damage. In addition, drivers must be able to prove that the vehicle is insured if pulled over for a traffic violation or following a traffic accident.
Motorists who fail to provide proof of car insurance  can receive a fine of $10 which may be waived if evidence of coverage is provided to law enforcement at a later date; not having a valid policy can result in a fine of $500.

Currently, New Hampshire is the lone state which does not require automobile coverage and the state of Virginia allows motorists to drive uninsured by paying a $500 fee per year; although residents in these states are allowed to operate a motor vehicle while uninsured it is not recommended. This can leave drivers vulnerable to financial hardships and lawsuits following a traffic accident.

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