Skip to content

ICBC announces $110 rebate to drivers, basic rates remain unchanged

VICTORIA – ICBC is providing a $110 rebate to eligible drivers due to better-than-expected investment income.

Additionally, basic rates will be maintained until March 31, 2026, marking six years in a row with no increases.

“Six years of stable rates and the fourth rebate for drivers comes as a result of years of work turning ICBC around so that it actually works for people,” said Premier David Eby, in a news release. “On average, drivers have saved $2,000 in rebates and lower rates since our reforms to ensure that when auto insurance is properly managed, people in B.C. benefit.”

ICBC’s preliminary net income for the fiscal year 2023-24 is an estimated $1.5 billion. The total amount of the rebate is $400 million, equivalent to $110 per eligible insurance policy. As the law now requires, the balance will stay with ICBC, helping to stabilize rates for drivers over the long term. The final, audited net income figure, along with a full financial summary of the fiscal year, will be released this summer.

All personal and commercial ICBC customers who had an active eligible basic insurance policy in February 2024 will receive the rebate, totalling roughly 3.6 million policies.

An important barometer of ICBC’s financial strength is its ability to absorb adverse risks and to still fulfil its obligations to policyholders, referred to as the minimum capital test (MCT). In 2015, the indicator for ICBC’s basic capital fell below 85 per cent, and by 2018, it had effectively reached zero per cent. Following the introduction of Enhanced Care, ICBC’s financial position has significantly improved, and today, the estimate for ICBC’s basic MCT is above 160 per cent and projected to remain strong.

David Wong, ICBC’s new president and CEO, has significant experience in financial management and a commitment to customer-centric services. His leadership focus aligns with ICBC’s mission to prioritize affordability and enhance customer convenience.

“To receive your rebate as quickly as possible, we encourage customers to update their addresses and sign up for direct deposit on https://icbc.com/ or through an Autoplan broker,” Wong said. “Initial rebate payments will commence in late May, with ongoing processing until the end of July. Customers receiving rebates via cheque are advised to allow additional time for mail processing and delivery.”

How drivers receive the rebate depends on how they paid for their insurance. For people who paid by credit card, the rebate will be refunded to the credit card. People who paid by cash, cheque or debit can sign up for direct deposit or will receive a cheque from ICBC. For people who are on a payment plan, the rebate will be applied directly to an upcoming payment.

Leave a comment

Your email address will not be published. Required fields are marked *