Skyrocketing claims, increases in cases of insurance fraud and more injury claims have led ICBC to project a worst-case scenario rate increase of 42 per cent by 2020.
ICBC released the long-term projections Wednesday under pressure from the B.C. Utilities Commission.
The insurer is projecting rates will go up 4.9 per cent in 2016, 6.4 per cent in 2017, 7.9 per cent in 2018, 9.4 per cent in 2019 and 7.9 per cent in 2020.
ICBC has also provided best-case scenario figures under which rates would only go up 15.8 in the same period.
In order to show British Columbians it is trying to keep rates down, the provincial government has announced plans to no longer insure luxury cars.
Once the legislation is passed, owners of personal vehicles selling for more than $150,000 will have to get private insurance.
Figures from the province provided by ICBC show luxury cars are six times more expensive to fix than the average passenger vehicle.
On Wednesday, Transportation Minister Todd Stone said that repairing a fender, grill, headlights and intercooler on a Bentley Flying Spur would be about $38,000.
"This is putting an unfair burden on the vast majority of the other ratepayers who are subsidizing this particular rate class through their premiums. This has to end," said Stone. "
ICBC rates up 30% since 2011
The provincial government has been facing criticism over ICBC rates that have gone up more than 30 per cent since Premier Christy Clark took office.
The province could not project how much money it would save by not insuring luxury cars but pointed out luxury car ownership had gone up by 30 per cent in the last three years.
Currently, luxury car owners pay about the same basic rate as the owner of a $15,000 car, the average value of a passenger vehicle in B.C.
Before the legislation is put in place, the province says it will increase rates for luxury car owners 'as soon as possible' that could see them pay double the insurance they pay now.
"This new rule will apply to private passenger vehicles only. It will not apply to pickup trucks or limousines or RVs," said Stone. "This is a move to protect the middle-class ratepayer and provide basic fairness."
NDP say change is a distraction
NDP critic Adrian Dix said the province is introducing the luxury car insurance change, not to help families but in order to "throw smoke" on the issue to distract ratepayers from the projected long-term increase.
"This was raced out because they have been caught misleading the public. They can't be allowed to get away with this nonsense," said Dix.
"That 42 per cent — they own it and they need to take responsibility for it."