New ICBC Rates: Who Will Pay More?

[thumper]

https://globalnews.ca/news/4379233/n...will-pay-more/

Majority of drivers will pay less under new ICBC rates, but high risk drivers will pay substancially more
By Richard Zussman
Online Journalist based at B.C. Legislature Global News



The B.C. government has launched a major overhaul to how much British Columbians pay for basic car insurance. Attorney General David Eby unveiled the new rate structure that will “more fairly and accurately reflect the risk they represent on the roads.”

“We want to modernize ICBC so that British Columbians pay according to their crash history, driving records and level of risk, and take responsibility for their driving habits. It’s only fair,” said Eby.

“Right now, the system is broken. A driver with no crashes could be paying the same premium as a driver with three at-fault crashes in a year.”

The changes are expected to be revenue neutral. The proposed rate changes must now go to the B.C. Utilities Commission (BCUC) to revue the proposal. If the changes are approved, the new rates are expected to come into effect in April, 2019.

The major changes proposed on Thursday include greater rate increases for drivers that are found at-fault in crashes, a move towards a driver-based model and increasing insurance discounts for drivers up to 40 years of driving increases, up from the current nine years of experience limit.

The B.C. government has also announced new discounts available for vehicles with original, manufacturer installed automatic braking technology and for vehicles driven less than 5,000 kilometres per year.

If the BCUC approves the changes it could mean a lower rate for an estimated two-thirds of ICBC’s customers.

“The changes we are proposing are the most significant updates to how ICBC’s basic insurance premiums are set in more than 30 years,” said ICBC board chair Joy MacPhail.

The provincial government is estimating that 67 per cent of customers would see premiums go down. A bulk of those drivers, 39 per cent of all drivers, will see rates go down less than $50. As for higher risk drivers, 17 per cent of all drivers will see annual rates go up more than $100.

In April, the provincial government introduced legislation to impose limits on soft-tissue injury payout from vehicle accident claims that could save enough to cover soaring costs that led to the public insurer losing $1.3 billion in the last fiscal year. The cap on soft-tissue injuries and a shift towards shifting ICBC claims from B.C. Supreme Court to the Civil Resolution Tribunal should save ICBC around $1.3 billion. The legislation moves ICBC claim cases of under $50,000 to the tribunal, with a target of resolution in as few as 90 days.

The provincial government has created examples based on the changes proposed today. These are some drivers that would pay more and those that will pay less for basic car insurance. The factors calculated are where the driver lives, who else drives the vehicle, driving history, car usage and other discounts.

Who will pay more
Inexperienced driver with no at-fault crashes: A driver that lives in Richmond, drives for pleasure, has three years of driving experience and has no at-fault crashes. Currently Pays: $1,608. Under proposed changes will pay: $1,706

Family or small-business: A primary driver with 20 years experience, no at-fault crashes, lives in Surrey, drives to work less than 15 kilometres a day and has another experienced driver (20 years) and an inexperienced driver (5 years) with an at-fault crash also driving the vehicle. Currently pays: $1,094. Under the proposed changes will pay: $1,294.

Inexperienced driver with one at-fault crash: A driver with one at-fault crash, lives in Surrey, drives to and from work less than 15 kilometres and is not eligible for discounts. Currently pays: $1,439. Under proposed changes will pay: $1,755

Who will pay less
Experienced driver with no at-fault crashes: A driver that lives in Whistler with 25 years of driving experience that drives for pleasure and has no at-fault crashes will see rates go down substantially. Currently Pays: $960. Under proposed changes will pay: $803

Experienced driver with no at-fault crashes that drives to work: A driver that lives in Williams Lake with 40 years of driving experience that drives to and from work over 15 kilometres. Currently Pays: $902. Under proposed changes will pay: $815

Senior driver with one waived at-fault crash: A driver with 50 years experience, with one waived at-fault crash, lives in Campbell River, drives for pleasure and has senior discount. Currently Pays: $617. Under proposed changes will pay: $585

–more to come

© 2018 Global News, a division of Corus Entertainment Inc.

[Spoon]

What's being counted for years of driving experience nowadays? Just the number of years you've had a DL? Or do you need to prove that you've owned a vehicle or been on an insurance policy?

[320icar]

Who will pay less
Experienced driver with no at-fault crashes: A driver that lives in Whistler with 25 years of driving experience that drives for pleasure and has no at-fault crashes will see rates go down substantially. Currently Pays: $960. Under proposed changes will pay: $803

Experienced driver with no at-fault crashes that drives to work: A driver that lives in Williams Lake with 40 years of driving experience that drives to and from work over 15 kilometres. Currently Pays: $902. Under proposed changes will pay: $815

Senior driver with one waived at-fault crash: A driver with 50 years experience, with one waived at-fault crash, lives in Campbell River, drives for pleasure and has senior discount. Currently Pays: $617. Under proposed changes will pay: $585

Notice how none of those people are paying over $1000 a year already. I’m 10 year driving experience accident and ticket free, work less than 15km and yet pay $3,000/yr

[Traum]

Originally Posted by 320icar

Notice how none of those people are paying over $1000 a year already. I’m 10 year driving experience accident and ticket free, work less than 15km and yet pay $3,000/yr

Dude, you drive a $60k car. I think $3k/yr for you is not expensive at all. My pos $15k (when brand new) car is costing me $1600/yr.

The provincial government is estimating that 67 per cent of customers would see premiums go down. A bulk of those drivers, 39 per cent of all drivers, will see rates go down less than $50.

I'm hardly surprised by the token discounts. As a matter of fact, I would have expected more than 39% of all drivers to see only token discounts on their insurance. IMO, for ICBC / NDP to be able to come up with such a plan where good drivers can see some token discounts is already rather impressive.

[XSSIV]

Originally Posted by 320icar

Notice how none of those people are paying over $1000 a year already. I’m 10 year driving experience accident and ticket free, work less than 15km and yet pay $3,000/yr

I believe they're only talking about basic insurance aka the mandatory stuff.

System is broken though.

I have a crash at fault on one of my plates and pay 160 on that one a month for basic. On my Civic I pay like 90 a month for basic. On my Tracker I also pay about 90 a month. My 4runner is about 160, but that's because the gf drives it and there was some added BS on there..

Sounds like 3k is for a new car with all the added insurance that's require for full coverage.

I could be wrong though.

My xwife's bro had to pay over 30K for a year of ins on his f150 lol... so for 3 years+ he drove on weekly permits

[stump]

My insurance already went up $150 this year from last year to almost $1900. My car is 8 years old. I have one minor accident in about 25-26 years of driving and I can't even remember the last ticket I got. I feel like these changes aren't going to do shit for me like usual.

[GS8]

Who will pay less
Experienced driver with no at-fault crashes: A driver that lives in Whistler with 25 years of driving experience that drives for pleasure and has no at-fault crashes will see rates go down substantially. Currently Pays: $960. Under proposed changes will pay: $803

Besides the Whistler part, this is pretty much me.

[freakshow]

So their 3 examples are..
1) someone who drives for pleasure
2) someone who is 56+
3) someone who is 66+

could they maybe have chosen some examples that make up the bulk of their driver base?

[yray]

The B.C. government has also announced new discounts available for vehicles with original, manufacturer installed automatic braking technology and for vehicles driven less than 5,000 kilometres per year.

could've stopped the rear ender I got last week on my lolvo which is probably costing icbc 10k+

atleast my tech stopped my car from hitting the car infront of me

[Traum]

I'm reading through ICBC's blurb on their website:

https://www.icbc.com/about-icbc/chan...-insurance-BC/

And here are some key takeaways that I noticed:

What does ICBC pay in an injury claim?

If you are in a crash and suffer an injury, ICBC accident benefits pay for your medical treatment, rehabilitation and wage loss, and may pay for other benefits such as home care, prescriptions and medical devices.

You are also usually paid an amount for pain and suffering (the legal term for the physical and emotional stress caused by the ordeal of the injury). This is over and above the amount provided for medical treatments to help you get better.

A limit (of up to $5,500) on pain and suffering payouts for minor injuries will be introduced as of April 1, 2019.

Think you may qualify for the low-kilometre discount?

If you think this low-kilometre discount may apply to you, you can provide your current odometer reading at your next annual renewal starting on August 23.

The DPP and DRP programs are separate from insurance premiums – they are linked to the driver’s licence and are billed even if the driver does not own or insure a vehicle.

Once approved, the DPP and DRP amounts will increase by 20 per cent this year, and another 20 per cent next year.

Owners of luxury vehicles valued at more than $150,000 now pay double for their basic premiums.

What are the consequences if I don’t list all drivers on my insurance?

If your vehicle is involved in a crash caused by an unlisted driver and you didn’t have the unlisted driver protection, you may be faced with a financial consequence based on the premium differential, up to $5,000 per claim. There would not be an insurance breach for not listing the drivers and the crash would follow the at-fault drivers.

[threezero]

I hope summer car/bike that only get insure 3 month of the year qualifies for low km discount

[MarkyMark]

Yeah those examples are garbage, if your annual insurance costs less than a grand you're already winning. What about the people that drive to work everyday, have no accidents in 15+ years yet still pay well over 2 grand a year?

[320icar]

Originally Posted by Traum

Dude, you drive a $60k car. I think $3k/yr for you is not expensive at all. My pos $15k (when brand new) car is costing me $1600/yr.


I'm hardly surprised by the token discounts. As a matter of fact, I would have expected more than 39% of all drivers to see only token discounts on their insurance. IMO, for ICBC / NDP to be able to come up with such a plan where good drivers can see some token discounts is already rather impressive.

Right. Cuz I’m the only one right?

[fliptuner]

Yay for old fucks, with no at-fault claims, who live in buttfuck nowhere!!!1!1!1!

[Jmac]

Originally Posted by MarkyMark

Yeah those examples are garbage, if your annual insurance costs less than a grand you're already winning. What about the people that drive to work everyday, have no accidents in 15+ years yet still pay well over 2 grand a year?

Well, that's just for basic. I'm fairly certain my basic is under $1000 w/ no accidents in 18 years and >15 kms to/from work. The optional coverage adds a fair chunk.

[Koflach]

I have over 20 years driving experience with 1 claim that was $900 in 2009 from my wife backing into a pole (it jumped out of nowhere). I have 1 speeding ticket and I drive a lot for work every day.

I'm sure they will find a way to increase my premiums.

[underscore]

“Right now, the system is broken. A driver with no crashes could be paying the same premium as a driver with three at-fault crashes in a year.”

Err, what? How? Didn't they just change the CRS a year or two ago? It does sound like they want to increase the discount for a clean record and ding people with at-faults more which is a good thing though. RIP to the bank accounts of some people I know though lol.

The part that sketches me out a bit is this:

In April, the provincial government introduced legislation to impose limits on soft-tissue injury payout from vehicle accident claims that could save enough to cover soaring costs that led to the public insurer losing $1.3 billion in the last fiscal year.

Of course it's easy for them to reduce rates if they give us less coverage in return. Either they're doing a poor job accurately gauging the amount to pay out (and overpaying) or they don't want to pay out the amount they should.

As for the rate changes, it sounds like the usual small ups and downs. Personally I'd rather keep my rates and scrap the bullshit used vehicle sales tax but that'll never happen since people are more concerned with insurance rates and gas prices which cost them less.

[tiger_handheld]

said it before, will say again, if we want fair rates, only way is to plug in a monitoring device into obdII. may feel like big brother but if you got nothing to hide and can save significantly, why bother?

[Jmac]

Originally Posted by underscore

Err, what? How? Didn't they just change the CRS a year or two ago? It does sound like they want to increase the discount for a clean record and ding people with at-faults more which is a good thing though. RIP to the bank accounts of some people I know though lol.

The part that sketches me out a bit is this:



Of course it's easy for them to reduce rates if they give us less coverage in return. Either they're doing a poor job accurately gauging the amount to pay out (and overpaying) or they don't want to pay out the amount they should.

As for the rate changes, it sounds like the usual small ups and downs. Personally I'd rather keep my rates and scrap the bullshit used vehicle sales tax but that'll never happen since people are more concerned with insurance rates and gas prices which cost them less.

The proposed CRS changes never actually took effect.

[!LittleDragon]

In my younger days, I had 3 tickets in one year and had to pay the dangerous driver premium.... yet I had full blown roadstar discount.... Kinda conflicting to say I'm a dangerous driver and a safe driver at the same time...

I wouldn't mind a retroactive refund type system. Make everyone pay more and anyone who manages to be claim free and ticket free for 5 years can get a refund of some kind. Kinda gives a monetary incentive to drive safely if you can get a big chunk of change back every 5 years. Maybe pay full price up front, get your CRS level discount refunded back to you after 5 years.

[fliptuner]

First off, it shouldn't be so easy to transfer an out of country license. They should at least have to take a road test. Even with the same rules, every country has a different driving culture.

Premiums shouldn't just be based on accidents but also driving record.

If your license gets suspended, there should be displacement limitation for X amount of time after you're reinstated.

Professional drivers should have stricter testing. Countless long haul drivers can't even put on a set of fucking chains.

Biennial car safety testing.

Fundamental license testing, every 10 years after 40. ie. signage, vision, reaction.

Lots of ways to both generate income and make the roads safer.

[AstulzerRZD]

Originally Posted by freakshow

So their 3 examples are..
1) someone who drives for pleasure
2) someone who is 56+
3) someone who is 66+

could they maybe have chosen some examples that make up the bulk of their driver base?

Full list of Customer Examples here, looks like there's about 8 of them:

https://www.icbc.com/about-icbc/chan...r-examples.pdf

[AstulzerRZD]

Originally Posted by MarkyMark

Yeah those examples are garbage, if your annual insurance costs less than a grand you're already winning. What about the people that drive to work everyday, have no accidents in 15+ years yet still pay well over 2 grand a year?

Examples are for basic insurance rate only, unclear what the effects on optional (comprehensive and collision) coverage will be

[yray]

Love how they skirt around 10 year no accident

good bye 10 year discount

means we are in for an increase guys

[Jmac]

I love how two at-fault crashes (one waived) in 30 years yields a 15.2% premium increase but two at-fault crashes (none waived) in 15 years yields a 12.6% premium increase. #logic