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Attorney General David Eby said the current system “broken” and out of date.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

Just Posted

Locals shine in Rumble in Rock Creek

Young B.C. boxers slugged it out at the Rock Creek Fair Grounds last Saturday

Grand Forks woman assaulted in home invasion

The incident took place Wednesday morning

Students rock Greenwood Community Hall

Grade 6 and 7 students performed songs from every decade since the 1950s

Your flower garden could be harbouring invasive species

Seeds for invasive species often hid in wildflower seed packs

Interior Health study offers take-home drug testing kits to spot fentanyl

Interior Health to evaluate safety of at home drug testing kits aimed at reducing fentanyl overdoses

VIDEO: Protesters in Penticton gather to rally against sleeping-on-sidewalk bylaw

The proposed bylaw would outlaw sitting or lying on the city’s downtown sidewalks

Raptors beat Bucks 100-94 to advance to franchise’s first-ever NBA Finals

Leonard has 27 points, 17 boards to lead Toronto past Milwaukee

Third person charged in death of B.C. teen Bhavkiran Dhesi

Inderdeep Kaur Deo facing charge of accessory after the fact to murder

Kamloops girl, 9, recovering from carbon monoxide poisoning now out of ICU

Her mother who was sleeping in the same tent with her did not survive

‘I think he’s still alive’: B.C. mom pleads for help finding son last seen a month ago

Family offering $5,000 reward for information leading to the safe return of Tim Delahaye

New poll suggests one-third don’t want politicians to wear religious symbols

Local politicians shouldn’t be allowed to wear hijabs, crucifixes or turbans on the job, survey suggests

Raptors fans far from home adjust plans to watch pivotal playoff game

Raptors currently lead the playoff series 3-2, and a win Saturday would vault them into NBA finals

Five takeaways from the Court of Appeal ruling on B.C.’s pipeline law

It’s unclear how many tools are left in B.C.’s toolbox to fight the project

Kootenay man arrested and charged in 2015 murder

Nathaniel Jessup 32 of Creston has been charged with the second-degree murder of Katherine McAdam and offering an indignity to a body.

Most Read