An insurer wants British Columbia’s worst drivers to be penalized sooner.
In an attempt to increase accountability, the Insurance Corporation of BC (ICBC) wants to drop the safe driving discounts for drivers who cause multiple at-fault crashes faster than they are dropped now.
“We believe that drivers who cause crashes should pay more than those who don’t,” ICBC board chair Barry Penner elaborated in a statement Friday. “There were 20,000 more crashes last year than in 2015. With the escalating pressures being put on insurance rates — from more crashes, more claims and higher costs per claim — we’re making sure at-fault drivers are held more accountable for the costs they add to the system here in B.C.”
Penner also explained that the penalty will help prevent future rate hikes for better drivers.
The changes to the safe driver discount penalty take effect on May 06, 2017, The Province reported.
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Under the current system, it is possible for some drivers to receive the maximum safe driver discount on basic insurance despite having caused two or more crashes, the ICBC said. With the new system, however, long-term safe drivers will continue to keep their discount, even if they have figured into one at-fault crash; any more collisions, and the discount drops.
ICBC reassured that most of its customers – at least those who do not cause too many crashes – will not see any changes. The insurer also said that drivers will continue to earn credit toward discounts for every year they remain crash-free. Drivers who cause a crash can regain their previous discount if they go three consecutive years without being at fault for a collision.
The Province noted that ICBC’s proposed amendments to the safe driver discount system follow other changes, including higher penalties for distracted driving, preventing fraudulent and exaggerated claims, and doubling basic premiums on vehicles worth more than $150,000.
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