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BC drivers see new premium rates

September 5th, 2019  |  News

The Insurance Corporation of British Columbia (ICBC) has now implemented its new way of calculating basic auto insurance premiums.

Effective September 1st, 2019, driving experience and crash history will have a greater focus when determining the cost of insurance.

With this new approach, premiums are calculated based on who is behind the wheel. Insurance premiums for one vehicle are 75% based on the main driver and 25% on the incidental driver with the highest level of risk.

“This is about calculating rates in a way that is more fair,” ICBC business process advisor Tyler McGilvery told CBC News. “Cars don’t cause crashes, drivers do.”

McGilvery added that 1 in 5 crashes in BC is caused by someone who is not a registered owner or is not the principal driver of the vehicle. The new premium calculation approach makes it mandatory for drivers to list anyone who drives their vehicle on their policy.

“By asking customers to provide their drivers, we’re able to more accurately rate based on the true risk of who is driving the vehicle,” he said.

Around 1,200 BC drivers have already insured their vehicles under the new premium calculation. Of those drivers, about 43% saw an average increase in their premiums of $212 a year, while 56% saw an average decrease of $329 a year.

Source: ICBC's new premium rates take effect