ICBC Changing the Way Your Premiums are Calculated
Effective September 2019, ICBC is making changes to car insurance and the ways your premiums are calculated. Major changes include:
- Who is determined at fault in a claim
- New Discounts
- Increased cost for dangerous drivers
- premiums will vary based on where you live and how you use your vehicle
Claims and the Effect on the At-Fault Party
At-fault crashes will now affect the driver of the vehicle and not policy holder. This means if you lend your car to someone else and they are involved in an at-fault accident, you will no longer have the claim attached to your insurance history. However, you will now need to list all the different drivers of your vehicle on the policy or purchase additional coverage for unlisted drivers Additionally, drivers in the learner stage will no longer have at-fault accidents count against them but also will not have this stage of time count towards their driver experience. Instead, if a learner is using your vehicle to learn there will be an additional premium ranging from $130 – $230 a year based on where you live.
Previously, claims were repayable to avoid any effects of on premium and claims history. Now claims are only repayable under $2,000. This will help ICBC more accurately assess the risk associated with riskier drivers. However, to help minimize the impacts of the change, the new rate system will only look at at-fault crashes from March 2017 onwards when using the new system to calculate rates.
Discounts
There will also be new discounts available. Vehicles that come equipped with the original manufacturer automatic emergency braking systems will be eligible for a 10% discount. Additionally, if you drive your vehicle less than 5,000 km a year you will also be eligible for a 10% discount.
Increased Cost for Dangerous Drivers
Drivers who fall under the Driver Penalty Point program (4 or more penalty points in 1 year) or the Driver Risk Premium program (serious convictions – ex. Roadside suspensions, distracted driving, etc) will receive a 20% increase on November 1st, 2018 and another 20% in November 1st, 2019.
Changes to Premiums based on Location and Use of Vehicle
ICBC is also updating the information used to calculate your rate class based on where you live and how you use your vehicle. The current information that ICBC uses is based on data from 2007. ICBC will gradually roll out these changes and drivers will either see an increase or decrease in their premiums based on their individual situations. This is only one of the factors that is used to calculate your basic premium. Ultimately, if the territory and rate class increases, you could still see an overall decrease based on other factors used to calculate your insurance premiums.
To learn more about ICBC and the new changes get in contact with an insurance broker near you.