Government proposes changes to ICBC insurance premiums

Attorney General David Eby has brought forward recommendations to reduce, what he has described as, the financial “dumpster fire” that is ICBC.

One of the proposed changes is moving to a driver based-model, which will see at-fault crashes be tied to the driver and not the car.

“92.1 per cent of respondents indicated that the driver, not the registered owner, to be held responsible and have their premiums increased if they cause a crash,” says Eby.

Out of the 35,000 respondents who took part in the public feedback, ICBC found that people who have a cleaner driving record shouldn’t have to pay the same amount as others who have a poor record.

Based on today’s rates, in the first year of this transition, an estimated 67 per cent of customers would see basic insurance premiums that reflect a lower risk:

• 39 per cent of all drivers – up to $50 reduction
• 13 per cent of all drivers – between $50 and $100 reduction
• 15 per cent of all drivers – more than $100 reduction

Based on today’s rates, in the first year, an estimated 33 per cent of customers would see basic insurance premiums that reflect a higher risk:

• 11 per cent of all drivers – up to $50 increase
• 5 per cent of all drivers – between $50 and $100 increase
• 17 per cent of all drivers – more than $100 increase

The recommendations must be approved by the BC Utilities Commission. If they are approved it would be implemented September 2019.

ICBC has a deficit of $1.3 billion.

Do you think 80% of BC drivers should be getting the top Basic insurance discount? That’s the case today. We’re proposing changes so low risk drivers aren’t paying the same as some high-risk drivers. Learn more: https://t.co/15AOBKcCCR pic.twitter.com/g3HXV5vkRp

— ICBC (@icbc) August 10, 2018