Good drivers shouldn’t have to continue paying more to cover the costs for those who cause crashes or present a higher risk on our roads.”The proposed changes align with feedback government received from nearly 35,000 British Columbians on how to make insurance fairer. Key proposed changes to basic insurance include:
* Moving to a driver-based model, so that at-fault crashes are tied to the driver and not the person who owns the vehicle;
* Increasing insurance discounts for drivers with up to 40 years of driving experience, up from the current limit of nine years; and,
* New discounts available for vehicles with original, manufacturer-installed automatic emergency braking technology and for vehicles driven less than 5,000 kilometres per year.
If approved by the BCUC, these changes will benefit an estimated two-thirds of ICBC’s customers. The changes will not increase the total funds that ICBC collects through basic policies, but instead will rebalance individual driver premiums and reset the way rates are determined.
* Basic insurance discounts for inexperienced drivers will be adjusted to better reflect their risk;
* At-fault crashes will have a larger impact on the premium a driver pays;
* Rate classes and territories data will be updated for the first time in more than 10 years to reflect significant changes in traffic density, population growth and changes in the urban infrastructure; and,
* An increase to the Driver Penalty Point (DPP) and Driver Risk Premium (DRP) programs of 20% in fall 2018 and 20% in fall 2019, as previously announced.
* ICBC basic insurance is the mandatory coverage drivers need for a vehicle in B.C. It helps ensure that British Columbians who own and drive a motor vehicle in this province are protected with a basic level of coverage.
* Under the model ICBC currently uses to determine premiums:
* A customer at the highest level and receiving the top discount can have up to three crashes in one year and still pay the same basic premium as a driver who is crash free.
* Over 40% of claims are forgiven each year, which means the cost of those claims is borne by everyone, including drivers who do not cause crashes.
* At-fault crashes affect the vehicle rather than the driver, allowing some drivers to hide their true risk and avoid paying a fair rate.
* Based on today’s rates, in the first year of this transition, an estimated 67% of customers would see basic insurance premiums that reflect a lower risk:
* 39% of all drivers – up to $50 reduction
* 13% of all drivers – between $50 and $100 reduction
* 15% of all drivers – more than $100 reduction
* Based on today’s rates, in the first year, an estimated 33% of customers would see basic insurance premiums that reflect a higher risk:
* 11% of all drivers – up to $50 increase
* 5% of all drivers – between $50 and $100 increase
* 17% of all drivers – more than $100 increase