High-risk drivers to pay more under revamped ICBC premium system

High-risk drivers to pay more under revamped ICBC premium system

"It depends on any given driver what the actual impact is going to be when they go to renew their insurance, but regardless of what the outcome of the rate hearing is, two-thirds of drivers will be better off under this system than they would be otherwise if we left things as they were", he said.

ICBC's current rate structure is more than 30-years-old and was build around insuring the vehicle, rather than the driver, and allowed discounts to drivers despite having multiple crashes.

Joy MacPhail, ICBC's board chair, told the news conference the message from a recent public engagement process was low-risk drivers should not be paying the same rate as some high-risk drivers.

Mr. Eby said under the current model, a person could have up to three crashes in a single year and still pay the same basic premium as a driver who is crash-free.

Inexperienced and high-risk drivers would pay more for their vehicle insurance in British Columbia under proposed changes to modernize the province's Crown auto insurance corporation. He said less-experienced drivers cause a disproportionate number of crashes and fatalities in B.C. and higher premiums better reflect their risks.

New discounts will be made available for those with manufacturer-installed automatic emergency braking systems in their vehicles as well as those who drive fewer than 5,000 kilometres a year. She said B.C. drivers need to have a choice in auto insurance and a chance to actually save money.

17% of all drivers - more than $100 increase.

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According to numbers obtained by CTV News through the Freedom of Information Act, those living in the Fraser Valley and eastern parts of Metro Vancouver are now costing the insurance provider more money in payouts per per capita than any other part of southern B.C.

Separately, the government has also directed ICBC to move the timing of its basic insurance rate application to the BCUC from late August to December to align any rate change with the other product changes already announced.

Attorney General David Eby announced that these changes will modernize the way premiums are calculated; however, the changes must be approved by the BCUC. It said 13 per cent of drivers would see a reduction between $50 and $100, and 15 per cent would see a reduction of more than $100.

The government says the changes are revenue-neutral, while making insurance premiums more fair, and they will have no effect on the forecast $1.3-billion deficit faced by the Insurance Corporation of British Columbia.

ICBC is now facing a deficit of $1.3 billion.

Eby has called the insurance corporation a "financial dumpster fire" with ICBC losing more than $1 billion previous year alone.

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