(Finlayson Street at Douglas Street / ItkasanImages)

Great news for those with an insured vehicle in British Columbia.

The BC Utilities Commission has approved ICBC’s request to drop car insurance rates in the province by 15%, effective May 1, 2021.

The interim rate will come into effect on May 1st until the utility regulator settles on a final permanent rate.

The decrease in auto insurance coverage is expected to save the average driver $400 a year in premiums.

According to Public Safety Minister Mike Farnworth, this would represent the largest single rate drop in the province in over 40 years.

“With its approval, starting May 1st, drivers will begin seeing savings of about $400 — on their basic and optional vehicle insurance,” he said at a press conference on December 14th, 2020.

The decrease would last until 2023 at the earliest.

ICBC will be lowering third party liability rates starting February 1st, and some drivers could see lower rates sooner than May.

ICBC will provide a one-time prorated refund to customers based on the difference between their current Autoplan coverage and the new Enhanced Care coverage, for the portion of their existing policy that extends past May 1st.

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