ICBC to restructure rates so high-risk drivers pay more

ICBC is structuring its rates over the next two years so that lower-risk drivers will be paying lower rates, while higher-risk customers will pay higher rates.

“Higher rates for high-risk drivers means benefits for good drivers,” said Paul Taylor, ICBC’s president and CEO. “Drivers need to drive more safely or they will pay higher premiums.”

For implementation in 2008, ICBC is proposing rate design changes for basic insurance that would target higher-risk drivers. The plan will be filed with the B.C. Utilities Commission.

If approved, the plan would see high-risk drivers paying hundreds, and in some cases thousands, of dollars more for their insurance. Up to 145,000 drivers with convictions for behaviour with the strongest links to causing crashes will pay the additional premium, ICBC notes.

The additional premium for high-risk drivers will “translate into savings for lower-risk customers,” ICBC says. “High-risk drivers cause more crashes, particularly more serious and costly crashes involving injuries and fatalities.

About 10% of ICBC customers whose vehicle is used by other drivers will pay a modest additional premium.

The $25 premium will be applied if one of the other drivers’ experience or crash history is worse than that of the principal operator. One in four crashes involves a driver who is not the principal operator listed on the insurance policy.