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Drivers across the province are getting more money from ICBC.
ICBC is issuing a second COVID-19 rebate. This is thanks to lower claims costs, due to fewer crashes during the COVID-19 pandemic.
Unlike the first rebate, in which ICBC cheques were mailed to drivers, this one will be distributed based partly on how you paid for your insurance.
If you used a credit card, you’ll have the rebate returned to the card you used.
If you paid by cash, debit, or Autoplan payment plan you’ll be mailed a cheque to the latest address on file with ICBC.
Customers can update their address online: icbc.com (https://icbc.com)
If you sign up by direct deposit by June 30th, ICBC will deposit the rebate right into your bank account.
“We’ve been clear that any pandemic-related savings against ICBC’s bottom line will benefit customers,” said Mike Farnworth, Minister of Public Safety and Solicitor General.
“The good news is that ICBC is in a strong financial position to issue a second COVID-19 rebate to customers, putting more money back in the pockets of B.C. drivers.”
ICBC will start distributing rebates averaging $120 per policy in mid-July.
This equates to roughly $350 million in additional rebates to 2.94 million customers and builds on the first round COVID-19 rebates for $600 million, province-wide.
Most customers with an active auto insurance policy from Oct. 1st, 2020, to March 31st, 2021, will be eligible.
Exceptions include customers with short-term, storage or distance-based policies, whose premiums already reflect lower usage.
The rebate is around 11 percent of the premium customers paid for coverage during this six-month period.
“The past year and a half has been tough on all British Columbians, but they’ve been doing the right thing – including staying closer to home and driving less because of the pandemic,” said Nicolas Jimenez, president and CEO, ICBC.
“Due to lower claims, we’re in a position to support our customers and bring them some extra relief, and that’s just what we’re going to do.”
ICBC not only reported around 20 percent fewer crash claims than expected between Oct. 1st of last year and March 31st, but also saw a reduction in premium revenue as drivers made changes to their insurance policies, held off on getting new ones, or cancelled them.
The estimated impact of fewer claims is $450 million, while written premium revenue is down $100 million compared to what would normally be received for the period, resulting in net underwriting savings of about $350 million.
Amounts will vary between customers, depending on whether they had a vehicle insured for the full six months and how much they paid in premiums during that time.
Roughly 70 percent of customers will get a rebate between $60 and $200.
Someone with several vehicles fully insured with ICBC Basic and Optional insurance may see a higher value COVID-19 rebate, while a person who has a vehicle with only Basic ICBC coverage or one that’s insured for a portion of the six-month period would see a lower rebate.
For example, a customer who insured a recreational vehicle for one month may see a very low-value COVID-19 rebate of just one or two dollars.