Economy

Changes to ICBC premiums would see bad drivers pay more

Changes to ICBC premiums would see bad drivers pay more

"The changes will not increase the total funds that ICBC collects through basic policies, but instead will rebalance individual driver premiums and reset the way rates are determined".

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. "When British Columbians were asked for their feedback on this topic, one message came out loud and clear, lower-risk drivers shouldn't be paying the same as some high-risk drivers".

About two-thirds of drivers will see a decrease in the amount they pay under the changes announced on Thursday and one-third will see an increase, Eby added. Most customers will fully transition to their new basic premium within three years under the proposed changes.

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.

The province said it has directed ICBC to file its application with the BC Utilities Commission next week.

These changes could come into effect by September 2019. It said 17 per cent of drivers would see an increase of more than $100. "A driver with no crashes could be paying the same premium as a driver with three at-fault crashes in a year".

More news: 'Mobster mentality': China's state media calls out US over trade tariffs

Rate classes and territories data will be updated for the first time in more than 10 years to reflect significant changes in traffic density, population growth and changes in the urban infrastructure. 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.

Wilkinson said the government should take a look at what's working in those other jurisdictions and implement those best practices to help lower insurance rates and provide better, fairer services to British Columbians.

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.

The NDP countered with a news release saying the Liberals raided $1.2 billion from ICBC while they were in power in order to pad their own annual budgets.

The changes are revenue-neutral and not meant to put a dent in ICBC's forecasted $1.3 billion deficit - a situation Eby has called a "financial dumpster fire".

Several changes had already been introduced prior to Thursday's announcement, including legislation that would limit pain and suffering payouts on personal injury claims to $5,500.