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BCUC approves proposed changes to ICBC rate structure

Last Updated Sep 29, 2018 at 8:22 am PDT

Summary

BCUC has approved proposed changes to ICBC's current rate structure, including a 20 per cent hike for risky drivers

Those who drive less than 5,000 kms a year could see discounts after BCUC approves ICBC rate structure changes

VANCOUVER (NEWS 1130) – Risky drivers in British Columbia will soon see their insurance premiums go up.

The B.C. Utilities Commission has now approved several proposed changes to ICBC’s current rate structure.

Most take effect in September of next year, but starting this November, some drivers will see their costs jump 20 per cent.

“The [Driver Penalty Point premiums] program applies to drivers who receive four or more penalty points in a one year period due to traffic offences,” ICBC explains in a statement. “The [Driver Risk Premiums] program applies to drivers who have a driving-related Criminal Code conviction, a roadside suspension or prohibition, or is guilty of excessive speeding or distracted driving.

That rate goes up another 20 per cent in November of 2019.

Meantime, drivers who travel less than 5,000 kilometres a year will be eligible for a 10 per cent discount. ICBC says those who think they may qualify should give their insurance broker a picture of their current odometer reading “for annual policies with an effective date of September 1, 2018 or later.”

The picture must be taken within seven days of insurance renewal. When the driver renews their insurance in 2019, they’ll be asked to give another odometer reading.

That is when the broker will determine if the person has driven less than the 5,000 allowance to be eligible for the decrease.

“This is a very important milestone for ICBC – these are the most significant changes in more than 30 years to how we determine Basic insurance premiums,” ICBC President and CEO Nicolas Jimenez. “We thank the Commission for their decision, enabling us to move forward so that we can increase fairness for all drivers in British Columbia.”

He admits the changes won’t address the current financial challenges ICBC has, but adds they will “make the system fairer so that lower-risk drivers are better recognized for their safe driving behaviours and higher-risk drivers pay more of their fair share.”