ICBC finally making the right adjustments

Date: 8 MAR 2017posted by Car Rentaledited by WinX

ICBC is finally adjusting the fairness of basic insurance rates based on increasing the accountability of reckless drivers who cause more at-fault accidents. The new changes to regulation was passed last week Friday but it will not take effect till next year May 6th, 2018. Barry Penner, ICBC Board Chair stated "We believe that drivers who cause crashes should pay more than those who don't." The much over due changes at ICBC will increase the basic insurance rate for drivers who cause more accidents than safe drivers. ICBC currently rewards all drivers credits which go towards their discount of auto insurance for every year they go accident-free. And if an accident does occur, and they are at fault they lose a fraction of their discount. "Going forward, drivers who cause multiple at-fault crashes will lose their safe driving discounts faster than they do today," says Penner.

But, at the same time there seems to be a bit of leniency. "It is possible for some drivers who have achieved maximum discount to have caused two, or even three, crashes and have the same discount on basic insurance as a driver who has never caused a crash." After all, they call it an accident because it was an accident. It goes to show the new changes will not be draconian-like and force immediate repercussions on someone having a bad day who is otherwise normally a safe driver. "Customers who cause a crash will regain their previous discount if they go three consecutive years without being responsible for a crash," continued in the statement. But apparently, everyone starts with a clean slate. "The increased accountability changes will not apply to at-fault crashes that are on a driver's insurance record prior to today," says the insurer. So all those reckless drivers right now have a chance to clean up their act. "Overall, we think this will generate an extra six million dollars to ICBC. It does not solve all of the financial pressures we are facing but it does help and more importantly, we think it's fair to those safe drivers who aren't causing accidents." There were over 20,000 more crashes in 2016 than in the previous year. Penner noted "with the escalating pressures being 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 BC."

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