Bad drivers to pay more in B.C. under new Crown auto insurance plan

VANCOUVER — Drivers who cause crashes or have fewer than 15 years of experience will pay more for vehicle insurance in British Columbia as part of a sweeping plan to overhaul how premiums are calculated.

The provincial government introduced the proposed changes on Thursday to modernize the system used by the Crown auto insurance corporation, which hasn’t been updated in decades.

If the changes are approved by the B.C. Utilities Commission, twothirds of drivers will pay less than they otherwise would while onethird will pay more, said Attorney General David Eby.

The current model to calculate rates used by the Insurance Corporation of B.C. is “broken,” he said.

“From now on, British Columbians can have more confidence that if they drive safely and don’t cause crashes, the rates they have to pay will much more closely represent the risk they actually represent on the road,” he said.

Nearly 40 per cent of drivers would see up to a $50 reduction in their annual premiums, while 15 per cent would see more than a $100 reduction, the province said, adding that just over 10 per cent would see an up-to-$50 increase and 17 per cent would see their rates hiked more than $100.

The adjustments would take effect in September 2019, although some elements will not be fully implemented until 2027.

The changes are revenue-neutral and not intended to put a dent in ICBC’s forecasted $1.3-billion deficit — a situation Eby has called a “financial dumpster fire.”

However, Eby said he hopes the measures will reduce costs to ICBC with a financial incentive to drive safely and prevent crashes, which are at a record high.

One key change is that B.C. would move to a driver-based model from a vehicle-based insurance, so atfault crashes are tied to the driver and not the car owner.

Premiums would be calculated based on years of experience, number of at-fault crashes, place of residence and how the vehicle is used, with additional discounts or add-ons on top.

Customers would have to list all the drivers who may operate the vehicle, and the experience and crash history of each driver would be taken into account in the premium.