B.C. auto insurance rates could spike: report

VANCOUVER — A new report warns that British Columbia drivers may have to pay 30 per cent more for auto insurance unless the provincial government makes big changes.

The study by Ernst & Young says a massive overhaul to the Insurance Corp. of British Columbia needs to start now in order to avoid drastic rate hikes that are forecast over the next two years.

The report says changes could include bringing back photo radar, capping payments for pain and suffering and making high-risk drivers pay more.

The Crown corporation commissioned the report before the B.C. New Democrats defeated the incumbent Liberals in May.

The report says ICBC is under increasing financial pressure because of a spike in the number of car crashes happening on B.C. roads and a jump in the cost of vehicle repairs and injury claims.

Liberal MLA Andrew Wilkinson says the NDP government needs to be clear with British Columbians about its plans for the insurance corporation.

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