Photo Credit: ICBC
Beginning September 1st, ICBC will be changing its insurance model to what it calls a more driver-based insurance model.
Drivers will notice several changes to their insurance including a list of all drivers who will use your vehicle, a photo of your current odometer, and information regarding factory-installed autonomous emergency breaking (AEB).
If you purchase or renew insurance from ICBC, brokers will ask for specific information regarding drivers who use your car, including household members, employees, and learners.
They will require the license numbers and date of birth of these drivers. ICBC says the addition or removal of drivers doesn’t cost anything, and adding drivers won’t necessarily change premium costs, depending on the driver’s experience and crash history. Under the new model, the majority of Basic insurance premiums will be based on the principal driver. Of the other drivers, the one with the highest level or risk will make up a quarter of the premiums.
However, if the listed driver is lower-risk than the principal driver, there will only be a reduction in premium if that listed driver is a household member or employee.
A new discount is available for vehicles that are driven less than 5,000 kilometres per year. Drivers can submit a photo of their odometer at renewal to their broker, and if they do not exceed the 5,000 kilometre limit, they will receive a 10 per cent discount the following year.
Another discount is being introduced come Sept. 1, vehicles equipped with factory-installed autonomous emergency breaking (AEB) will be eligible for a 10 per cent discount. ICBC says AEB has been statistically shown to help prevent crashes.
Driving history and crashes already affect basic premium insurance, but beginning September 1, they will have a greater impact. According to ICBC, the more crashes you cause, the more you will pay in insurance.
There will also be changes to Driver Risk Premiums so that distracted driving is designated a high-risk behaviour. Drivers with two convictions for using an electronic device while driving in a three-year period will face as much as $2,400 in fines and premiums. This amount will go up by a further 20 per cent in November 2019.
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