ICBC 2008 rates to target higher-risk drivers

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.
As for 2007, rates are going down or staying roughly the same for half of B.C. motorists who buy their basic and optional coverage from ICBC,” the government insurer announced. “For the majority of customers who choose ICBC for their optional coverage, overall rates in 2007 will be approximately the same as they were in 2004.”
An average 3.8% decrease in rates for optional coverage will be implemented in May 2007. A 3.3% increase in rates for basic insurance is being recommended to the B.C. Utilities Commission later this month. This is to address the estimated increase of 3-4% in future bodily injury claims costs, ICBC said in a press release.