ICBC is making moves to increase the fairness of basic insurance rates.
The Crown corporation believes that drivers who cause crashes should pay more than those who don’t.
And soon, they will.
ICBC says going forward, drivers who cause at-fault collisions will lose their discounts faster.
Currently, possible drivers who have caused multiple crashes have the same discount on basic insurance as a driver who has never caused one.
Under the new system, one crash keeps your discount protected, but multiple at-fault crashes will not.
ICBC board chair Barry Penner says they heard these concerns for a long time.
“The board of directors and I identified what we thought was a fairness issue here, which is that people that have never had a claim may end up paying the same amount for their insurance as people that’ve had several at-fault claims in a short period of time. We don’t think that’s fair, the government agreed.”
Starting now, drivers who get into at fault collisions will lose their discounts faster when they renew insurance after May 6, 2018.
— Matt Lee (@mattlee980) March 3, 2017
Penner estimates the new policy will save ICBC, floundering in red ink, $6-million a year.
“It does not solve our financial pressures, but I believe every problem has to be solved in a series of steps. This is one of the steps of several that we have undertaken to help turn the corner and improve our financial situation.”
He says crashes have risen 23 per cent year over year, a factor behind ICBC facing a $396-million loss.