ICBC recently announced that they will be making some big changes to their car insurance policies in order to be able to offer drivers more affordable insurance rates, while also being able to provide drivers with more care and coverage after a crash. Read below to learn more.
Enhanced Care Coverage
ICBC has named their new car insurance policy “Enhanced Care” and have made some bold statements about what the benefits this new type of car insurance coverage will provide drivers.
Car Insurance Savings
Drivers should save about 20% on their car insurance policies (about $400/year) on average, according to ICBC.
More Care and Benefits
BC residents should also gain more and easier access to significantly enhanced medical care, recovery and wage loss benefits if they’re injured in a car crash (regardless of who was responsible).
Medical Care and Rehabilitation
This portion of the benefits will increase up to a maximum of $7.5 million (up from $300,000), and covers things like treatments such as physiotherapy, massage therapy, and more. It also covers support services like counselling, medication, medical devices/equipment, dental care, alterations needed to your vehicle or home (ramps, stair lifts, etc.), as well as travel and accommodation expenses if out-of-town travel for appointments are needed.
This portion of the benefits will also increase up to a maximum of $1,200 per week (up 60% from $740/week). The maximum is for those who earn a gross annual income of up to $93,400, but those who earn more than this will have the option to purchase additional coverage to give them a higher wage loss limit.
Personal Care Assistance
This portion of the benefits will also increase to up to $4,800 per month. This benefit is more for those who suffer extreme injuries and require support with personal activities like eating, bathing, dressing, etc.
This portion of the benefits will also increase to $60,000-$500,000 (up from $30,000), and is meant to be paid out to a spouse of a deceased. The deceased’s dependents will also receive additional benefits, and there is also up to $7,500 available for funeral costs.
Income Replacement Benefits
This portion of the benefits is brand new, and is being introduced to support students, minors, those who are retired, and/or those who run a family business in case they are injured to an extent that makes them unable to study, save for retirement, or fulfill their usual family business work.
This portion of the benefits is also brand new, and is meant to help family caregivers in case their injury prevents them from fulfilling their regular care-giving duties.
This portion of the benefits is also brand new, and is meant to help with participating in leisure activities if those who are injured need support with this. The maximum amount for this benefit will be up to $4,000 every 2 years (and is dependent on how severe the injury is).
This portion of the benefits is also brand new, and is meant to support grieving family member. The benefit has a maximum of up to $3,500 in counselling expenses.
How Are These Changes Possible?
It seems as if one of the largest costs ICBC has had to deal with in the past were lawyer fees, the costs associated with their litigation-based system. Enhanced Care largely removes the needs for these expensive lawyers and legal fees, so those savings are supposed to go to lowering car insurance rates and improving benefits.
The Road to Enhanced Coverage
ICBC has stated that their new Enhanced Coverage car insurance policies will go in effect come May 2021.
ICBC has also explained that even if you’re already within an active car insurance policy by the time May 2021 comes, drivers can still expect savings starting May 2021 due to a pro-rated refund on the remainder of the policy.
Discuss ICBC’s 2021 Enhanced Coverage Today
If you have any questions about ICBC’s new Enhanced Coverage details set to be rolled out come May 2021, we encourage you to reach out to us here at Harbord Insurance to speak to a knowledgeable insurance rep. We’d be happy to answer any question you may have. Contact us today!