ICBC is seeing a steep increase in accident and injury claims. (Terry Farrell/Black Press)

ICBC moves to tighten driver discount rules

Still in red $1.3 billion, next year’s rate increase not yet known

ICBC is updating its 30-year-old rate structure to shift costs to those most at risk of accidents, including an extra charge to cover new drivers and potential savings for seniors with a long history of safe driving.

Under the proposed changes, ICBC will forgive one claim for customers with 20 years of driving experience, and no at-fault crashes in the past 10 years. Once a claim has been forgiven, the customer will need 10 more years of crash-free driving to regain the ability to have a crash forgiven without rate increase.

Owners with a learner using their vehicle will pay a premium for the additional risk, ranging from $130 to $230. Inexperienced drivers will also pay higher rates, reducing as they record years of safe driving.

The changes are to be phased in starting next year, once approved by the B.C. Utilities Commission. Rates are also to be adjusted for territories of B.C., updating the 10-year-old regional rates to account for urbanization and the increased risks for densely populated areas.

Attorney General David Eby said the current system “broken” and out of date.

“A driver with no crashes could be paying the same premium as a driver with three at-fault crashes in a year,” Eby said.

The first change B.C. drivers will notice is this fall, when previously announced increases in penalty points and serious offence convictions take effect. Those rates go up 20 per cent in September 2018 and another 20 per cent in September 2019.

ICBC estimates that up to two thirds of its customers would benefit from the changes if they were implemented today, but that does not take into account the further rate increases that may be needed.

Eby said ICBC is still expecting to report a $1.3 billion shortfall in its fiscal year that ended March 31, due to record-high crash rates, claim payouts and legal costs associated with settling claims. He was not able to estimate the general rate increases that will be needed in the years ahead to bring the corporation’s books back into the black.

RELATED: ICBC rates went up 6.4% in September 2017

RELATED: ICBC to cap pain and suffering payouts at $5,500

Currently the safe driver discount reaches its maximum after nine years of crash-free driving. When the new system takes effect, crash-free drivers continue to accumulate discount for up to 40 years.

B.C. Liberal leader Andrew Wilksinson said the Crown corporation’s performance does not stack up well against private insurance.

“When we look across North America we see that most other jurisdictions operate without a government-run insurance system, but do operate under very similar driving laws as British Columbia,” Wilkinson said. “Strangely, those motorists are not facing a system that unfairly labels most of them as ‘bad drivers’ and forces them to pay very high insurance rates.”

BC legislatureICBC

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

‘Each step is a prayer’: Ojibwe man will walk from Hope to Vancouver Island for Indigenous healing, reconciliation

James Taylor departs Sept. 20, returns to Saanich in five days for sacred fire

COLUMN: We don’t need an election. But it’s 2020, so we’ll probably get one anyways.

There are only selfish reasons for the NDP to trigger an election this fall

Plea deal results in guilty plea in fatal Langley shooting in 2017

First degree murder charge amended to conspiracy to commit murder

Say ‘Hi’ to the mountains (and rain): The smoke is gone from the Fraser Valley, for now

Saturday’s Fraser Valley air quality forecast at ‘moderate risk,’ but morning showers leave skies clear

Abbotsford considers hiking development fees for new houses – and schools and churches

City considers hiking development cost charges on new institutional and agriculture buildings

3 new deaths due to COVID-19 in B.C., 139 new cases

B.C. confirms 40 ‘historic cases,’ as well

Ferry riders say lower fares are what’s most needed to improve service

Provincial government announces findings of public engagement process

Air quality advisory ends for the Lower Mainland

It had been in effect since Sept. 8

Supreme Court Justice Ruth Bader Ginsburg dies at 87

The court’s second female justice, died Friday at her home in Washington

Emaciated grizzly found dead on central B.C. coast as low salmon count sparks concern

Grizzly was found on Gwa’sala-‘Nakwaxda’xw territory in Smith Inlet, 60K north of Port Hardy

VIDEO: B.C. to launch mouth-rinse COVID-19 test for kids

Test involves swishing and gargling saline in mouth and no deep-nasal swab

Young Canadians have curtailed vaping during pandemic, survey finds

The survey funded by Heart & Stroke also found the decrease in vaping frequency is most notable in British Columbia and Ontario

Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

B.C. teachers file Labour Relations Board application over COVID-19 classroom concerns

The application comes as B.C.’s second week of the new school year comes to a close

Most Read