B.C. extends freeze on basic auto insurance rates until 2027

Drivers in British Columbia will see no increase to their basic auto insurance premiums until at least spring 2027, extending a seven-year streak of stable rates under the province’s public insurer.

Attorney General Niki Sharma, who oversees the Insurance Corporation of British Columbia (ICBC), said the decision supports the government’s broader affordability measures. “Keeping basic insurance rates low and stable is part of our government’s commitment to affordability and helping people manage their day-to-day budgets,” she said in a statement.

ICBC’s latest financial review found that existing revenues are sufficient to cover claims and operating costs through the 2026–27 fiscal year, meaning no application for a rate change will be filed with the B.C. Utilities Commission next year. The Crown insurer last sought an adjustment in 2020.

Jason McDaniel, ICBC’s interim president and CEO, said the focus will now shift toward improving customer service and online accessibility. “As a public auto insurer, run by British Columbians for British Columbians, we are dedicated to providing affordable, steady rates and fiscal stability to the people and places where we live,” McDaniel said.

The province introduced the Enhanced Care model in 2021, shifting from a litigation-based to a care-based system. The change cut basic insurance rates by an average of $496 per driver—about 28 percent—and helped transform B.C. from one of Canada’s most expensive jurisdictions for car insurance to one of the most affordable.

Since the shift, ICBC has issued roughly $2.7 billion in customer rebates, with eligible policyholders receiving about $640 in five payments. The insurer says improved financial performance has made these rebates possible while continuing to offer long-term care and recovery benefits for people injured in crashes.