Will your car insurance rates increase? ICBC is changing to a driver-based insurance model

Will your car insurance rates increase? On September 1, 2019, ICBC rolled out significant changes to auto insurance in British Columbia. Driving experience and crash history will have a bigger impact on your premiums on your next renewal.

Vehicle-based premium

The biggest change relates to all people who may drive your car. Car owners will be asked to list all drivers who will have access to your vehicle and these drivers will have an impact on your premiums. Each person’s driving experience and crash history will have an impact on how the premiums are calculated.

Stats show that 1 in 5 car crashes are caused by a driver not listed on the policy. The new model ensures crashes follow drivers not cars. Insurance is now going to be calculated on the history of each driver and then the vehicle information and location.

ICBC renewal checklist

From September 1, 2019, when you purchase or renew your insurance you will need:

• The driver’s license number and date of birth for each driver you want to list on your policy
• Of the listed drivers, who is the principal driver
• A photo of your current odometer reading if your car is driven less than 5,000 km in a year (a potential discount may apply at your next renewal)
• To check your owner’s manual, or with your dealership, to see if your vehicle has factory-installed autonomous emergency braking (AEB). Vehicles equipped with AEB will be eligible for a discount.

ICBC is introducing new discounts

• Vehicles equipped with factory-installed autonomous emergency braking (AEB) will be eligible for a 10% discount as AEB has been statistically shown to help prevent crashes.
• If a vehicle is driven less than 5,000 km per year, a discount is available.
• Record your odometer reading and on the next policy renewal, if the mileage is less than 5,000 km a 10% discount will be applied.

What drivers should I list?

Household members, employees, and regular drivers should be listed if they’re going to use your car. If a learner will be driving your car, a new additional premium will also apply.

The majority (75%) of your basic insurance premium will be based on the principal driver(the person who will drive the vehicle the most). Of the other listed drivers, the one with the highest level of risk will make up the remaining 25%. Adding drivers won’t necessarily increase your premium. It will depend on various factors, such as each listed driver’s experience and crash history.

What if an unlisted driver causes a crash in my car?

Although the Unlisted Driver Protection won’t need to be purchased, once an unlisted driver causes a crash in your car, this protection will cost $50 annually. If there are more crashes by unlisted drivers using your car, the cost of the protection will increase.

There will be exemptions for extraordinary situations, such as when an unlisted driver uses your vehicle for a medical emergency. Mechanics and valets who may drive your car are covered by their own policy.

Optional insurance coverages

In addition to the above changes, frequent serious driving convictions will be factored into your premiums for collision and extended third party coverage.

Premiums will increase with:

• Two or more convictions for minor offenses, such as failure to stop at a stop sign or speeding infractions.
• One serious offense, such as distracted driving, impaired driving or excessive speeding within a three-year period.
• Convictions resulting from driving violations that occurred on or after from June 10, 2019, will have the potential to impact a customer’s Optional premium starting September 1, 2019. Those premiums will increase with the frequency and seriousness of the convictions.

ICBC says the goal of the new model is to benefit lower-risk drivers – those who don’t cause crashes or get driving convictions. Call your Reliance Insurance broker today at 604-255-4616 for clarification on your next autoplan renewal. We also have private insurer options.

Resources:

ICBC: Making car insurance better for B.C

CTV News: First look at how changes to ICBC rates may affect your premiums.

More on:  Auto Insurance at Reliance Insurance