Wednesday, March 19, 2008

HIGH RISK DRIVERS WILL INCREASE YOUR ICBC PREMIUMS

Additional charge for multiple drivers
of one vehicle is postponed

ICBC is responding to customer feedback by taking a phased approach to changes to the way rates are set for basic insurance.

In the spring of 2007 ICBC announced plans to charge high-risk drivers more. Two initiatives - the Driver Risk Premium and a $25 premium when other higher-risk drivers use a vehicle - were subsequently approved by the BC Utilities Commission, which regulates basic, compulsory insurance.

However due to input received from customers, ICBC will now take a phased approach to these rate design changes. It is clear from the feedback that ICBC needs to take more time to explain the factors which indicate higher risk for some customers, including the crash risk linked to multiple traffic infractions and the additional risk when several drivers use one vehicle.

ICBC remains committed to its long-term plan to move towards driver-based pricing. Drivers who are higher risk - including those who cause crashes and get traffic violations - will see their insurance costs increase. Most drivers will benefit as the additional premiums paid by high-risk drivers will help offset basic insurance rates for safer drivers.

The Driver Risk Premium is now being implemented in two phases. The first phase will see drivers with Criminal Code convictions (e.g. impaired driving) and one or more tickets for excessive speeding (more than 40 km over the speed limit), and drivers with two or more roadside suspensions pay more starting in 2009 based on their record starting January 1, 2008. Once fully phased in, the driver record scan will be for the past three years.

The second phase will expand to include three or more motor vehicle-related offences (over a three-year period) on a driver's record from January 2009 forward with additional charges going into effect in 2010.

The additional charge for other household members using the vehicle who have less experience and or a worse driving record will not be implemented on May 1, 2008 as previously scheduled while ICBC examines the best approach for moving forward.

The goal is for customers to understand driver-based pricing and to make individual choices that lead to safer driving and lower premiums. ICBC will use the additional time to communicate more about the move towards driver-based pricing and the role customers can play in keeping rates low and stable.

Further details on the Driver Risk Premium program.


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