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Attorney General David Eby said the current system “broken” and out of date.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

True crime podcaster on mid Island inspired by case of missing Island woman

‘Island Crime’ Season 1 covers 2002 disappearance of 21-year-old Lisa Marie Young

Alberni Valley Community Foundation releases second round of emergency funding

The Alberni Valley Community Foundation will provide $75,000 to support local charities… Continue reading

Port Alberni’s Cruise for Care returns for encore

Car enthusiasts will honour frontline workers Friday, May 29 on route through city

Accident, downed power lines closes Highway 4 west of Port Alberni

Detour is available near Hector Road as BC Hydro crews work to restore power

Huu-ay-aht First Nations qualify for national wage subsidy

Limited partnership structure caused concern when CEWS was first introduced

B.C. records no new COVID-19 deaths for the first time in weeks

Good news comes despite 11 new test-positive cases in B.C. in the past 24 hours

An ongoing updated list of Alberni Valley events affected by COVID-19

Has your event been cancelled or postponed? Check here

BC Corrections to expand list of eligible offenders for early release during pandemic

Non-violent offenders are being considered for early release through risk assessment process

Fraser Valley driver featured on ‘Highway Thru Hell’ TV show dies

Monkhouse died Sunday night of a heartattack, Jamie Davis towing confirmed

Study looks at feasibility of Vancouver Island abattoir

South Island Prosperity Partnership funds study looking at local meat processing

Island city cancels plan for homeless camp; exploring alternative option

The plan heard strong objection from neighbouring residents and businesses

B.C. visitor centres get help with COVID-19 prevention measures

Destination B.C. gearing up for local, in-province tourism

36 soldiers test positive for COVID-19 after working in Ontario, Quebec care homes

Nearly 1,700 military members are working in long-term care homes overwhelmed by COVID-19

Most Read