Province to ask ICBC to bring forward motion to raise rates for poor drivers
The B.C. government is asking ICBC to get the ball rolling on increasing insurance rates for bad drivers.
This comes after nearly 35,000 people took part in an online survey on rate fairness.
Eighty-two per cent of respondents said drivers who are found to be at-fault in crashes should pay more.
The increases would result in penalty amounts increasing by 20 per cent in the first year and an additional 20 per cent in the next year.
“Changes to our auto insurance rating system are long overdue,” said Attorney General David Eby said in a release. “The responses from the ICBC rate fairness engagement indicate the majority of British Columbians favour changes that will make insurance more affordable for low-risk drivers and see high-risk drivers pay increased insurance premiums to better reflect the risks they represent.”
The rate hike would have to be brought forward to the B.C. Utilities commission before being implemented.
Feedback also shows a majority of those who responded agree that:
* The option to pay back claims should be changed (currently, customers can repay vehicle damage claims and not have their premiums affected).
* A driver-based system would be more fair, as insurance rates would be tied to drivers, rather than vehicle owners.
* Driving convictions should play a greater role on premiums.
Feedback was mixed regarding the penalty amount owners should pay if a crash is caused by an unlisted driver, as well as whether distance driven should play a greater role in determining insurance rates.