The provincial government of British Columbia has announced that the proposed changes to the Insurance Corporation of British Columbia (ICBC) could be in effect as early as this fall.
“Changes to our auto insurance rating system are long overdue,” Attorney General David Eby said in a statement.
A news release from the government revealed that almost 35,000 people participated in an online consultation this spring related to the planned changes to the ICBC’s premiums and penalties.
“The responses from the ICBC rate fairness engagement indicate the majority of British Columbians favour changes that will make insurance more affordable for low-risk drivers and see high-risk drivers pay increased insurance premiums to better reflect the risks they represent.”
The attorney general added that the government has ordered the ICBC to put forward to the BC Utilities Commission (BCUC) new penalty rates for repeat offenders – particularly those caught speeding, driving while impaired, or while distracted. The insurer has also been told to create a new driver penalty point program for minor driving violations.
Once the BCUC approves the proposed changes, penalty amounts could increase by 20% in the first year of implementation, Vancouver Sun reported. An additional 20% hike on penalties could be passed in ensuing years.
“While moving quickly to implement changes for dangerous driving, we are also using this feedback to inform additional changes in the coming months to help make rates more fair for drivers,” Eby explained.
“This feedback will help ensure our improved auto insurance rating system is consistent with the values of British Columbians.”
