If you have recently renewed insurance for your vehicle, you might have been asked different questions from the usual at the insurance broker or noticed a different rate for your insurance. That is because ICBC changed its rates on Sept. 1, 2019.
With the new system, three factors will be taken into account to determine a person’s premium: who else drives their car, the number of crashes a driver has, and the number of years driving experience.
Newer drivers may see an increase in their rates, and those who are deemed safe drivers and have more experience may see a decrease. Overall, this change in the system of calculating insurance rates is not ideal for new drivers. According to an article in Victoria News, some new drivers could see a maximum $200 difference in their basic insurance. I think that is a bit much; who can afford that!
Even drivers who have a good rate coming into the new changes might have to pay more because someone who also drives their car has a worse rate. All drivers who use a vehicle need to be listed, and their crash history and driving experience will be used to calculate the principle driver’s insurance rate. Adding a learner driver may result in a $130–230 per year increase, depending on the location of residence.
ICBC will be offering different discounts as well. There will no longer be the 10-year discount which was offered to those who had 10-plus years of driving experience. With the new system, a vehicle driving less than 5,000 km a year will be eligible to receive a 10 per cent discount. There is also a discount for vehicles with autonomous emergency braking (AEB). Vehicles that are equipped with a factory-installed AEB are eligible to receive a 10 per cent discount because having an AEB system has been shown to help prevent crashes.
The major problem for ICBC at the moment is the rising rate of car crashes. According to ICBC’s quick statistics, each year from 2013 the rate of crashes has increased. In 2013 there were a total of 260,00 crashes in B.C. and in 2017 that was raised to 350,000 crashes.
According to ICBC, of all the crashes that occur on B.C. roads, approximately 60 per cent take place at intersections. One of the changes, other than the new insurance system, is that ICBC has created an intersection safety camera program. They have collaborated with the police and the provincial government to operate this program. The program has started in cities like Abbotsford where the intersection cameras are changed to speed cameras in order to help reduce car crashes. They’ve made this change at the intersection of Sumas Way and Lonzo Road in Abbotsford right before getting on the highway.
The new rating system and the intersection safety camera program are being introduced to help reduce the number of crashes overall. According to ***Victoria News, Attorney General David Eby said everyone’s rates should see a decrease over time, even young drivers. While the changes were done to address the rising crash rates, ICBC’s first priority is to reduce their billion dollar deficits.
We pay more for car insurance than anywhere else in Canada. According to ARC Insurance, in 2018 B.C. residents paid $1,680 on average annual premium. Now compare that to Quebec who has the lowest insurance premiums in Canada. They paid around $642 on average annual premiums in 2018. I love living in B.C., but one of the major downfalls is insurance rates.
