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Drivers who renew their annual insurance premiums before May 1, 2021, when ICBC switches to no-fault insurance, will get refunds for the months after that date for which they have already paid the old, higher rate.

The Insurance Corp. of B.C. announced Thursday that premiums will drop an average of 20 per cent on that date. The switch to no-fault means in most cases drivers won’t be engaged in a lawsuit after a crash to win damages. ICBC says the change will save it about $1.5 billion annually.

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ICBC says the change also means an average savings of $400 on annual premiums for drivers.

A driver who renews on May 1, 2021 or later will see the full savings on their annual policy. Drivers who renew in the year before that date will receive a pro-rated refund for the months after that date. Their refund will be issued based on their payment method and drivers on a month-to-month plan will see those payments drop, according to ICBC.