Recently ICBC has suffered a monumental amount of setbacks such as skyrocketing claims, increase cases of insurance fraud and more injury claims which has lead them to project a worst-case scenario rate increase of 42 percent by 2020. For the time being, the vehicle insurance provider company in BC is projecting the worse-case scenario figures at up 4.9 percent in 2016, 6.4 percent in 2017, 7.9 percent in 2016, 9.4 percent in 2019 and 7.9 percent in 2020. The provincial government is attempting to show residents their commitment to attempt to keep rates down by trying to pass legislation which would require owners of personal vehicles selling for more than $150,000 to get private insurance. Transportation Minister Todd Stone claims he's trying to curb the rising vehicle insurance rates which could have easily gone up by more than 15 percent this year.
Statistics from the province provided by ICBC show luxury cars are six times more expensive to fix than the average passenger vehicle. They demonstrated this figure by comparing the repair costs on a Ferrari verses a Toyota Corolla. The cost to fix a bumper on a Ferrari would cost $6000 compared to the $390 for a Toyota Corolla, yet the basic insurance premiums for drivers of both vehicles are comparably priced. The number of luxury cars on the road risen 30 percent to 3000 in the past three years. The number of super-high-end exotic sports cars has nearly doubled over the past six years in just Metro Vancouver alone, from 1300 vehicles in 2009 to 2500 in 2015.
ICBC will maintain its monopoly on basic insurance for everyone else while luxury car owners will have to go to private companies to insure their vehicles for repairs. Until the law is changed, Stone stated high-end vehicle owners will have their premiums doubled to cover the cost of repairing their vehicles. Luxury vehicles that are to be affected by this law will not include limos, trucks, motor-homes or collector vehicles. The company has also provided best-case scenario figures under which rates would only go up to 15.8 percent by 2020. The provincial government has been facing rising criticism over ICBC rates that have been raised more than 30 percent since Premier Christy Clark took office since 2011. The province could not project how much money it would save by not insuring selective cars. "This is a move to protect the middle-class ratepayer and provide basic fairness," stated Stone.