How ICBC will give back your money when rates drop in 2021
Credit to Author: Nick Eagland| Date: Sat, 08 Feb 2020 01:57:35 +0000
Drivers who renew their annual insurance premiums before May 1, 2021, when ICBC switches to no-fault insurance, will get refunds for the months after that date for which they have already paid the old, higher rate.
The Insurance Corp. of B.C. announced Thursday that premiums will drop an average of 20 per cent on that date. The switch to no-fault means in most cases drivers won’t be engaged in a lawsuit after a crash to win damages. ICBC says the change will save it about $1.5 billion annually.
ICBC says the change also means an average savings of $400 on annual premiums for drivers.
A driver who renews on May 1, 2021 or later will see the full savings on their annual policy. Drivers who renew in the year before that date will receive a pro-rated refund for the months after that date. Their refund will be issued based on their payment method and drivers on a month-to-month plan will see those payments drop, according to ICBC.
Refunds will be issued by July 31, 2021, ICBC said.
ICBC offers an example on its 2021.icbc.com website describing a driver named “Maureen” who renewed her annual policy on Aug. 1, 2020. She pays for her insurance coverage at 2020 rates from Aug. 1, 2020, to July 31, 2021.
“After enhanced care comes into effect on May 1, 2021, Maureen will get a pro-rated refund for the difference between the old rate and the new, lower rate, for the three months (May 2021 to July 2021) remaining on her current policy. On average, a refund for three months would be around $100,” ICBC said.
“When she renews her annual policy on August 1, 2021, she’ll see the full benefit of the savings when the new lower rate of enhanced care is reflected in her annual premium. She will then save approximately 20 per cent compared to what she paid the previous year.”
The rate cut will cost roughly $1.7 billion.
ICBC said much of the money it will save under the new system will be used to boost the type and length of benefits claimants receive, such as visits to chiropractors, massage therapy and counselling.
New benefits will include compensation for travel, personal care assistants and school fees, among others. For example, payments for lost wages due to a crash will increase to $1,200 a week, from $740. Doctors, not ICBC, will decide what benefits claimants receive and for how long.
With files from Rob Shaw