How ICBC Insurance Changes Affect Insurance Premiums
On Sept. 1, 2019, ICBC is changing car insurance in B.C. With these changes, you might be wondering how your ICBC insurance costs are affected. Well, we’re here to answer your questions on how car insurance premiums in B.C. are changing on Sept.
Will my ICBC insurance premiums go up on Sept. 1?
Your insurance premiums will depend on a number of things, especially your driving history and experience. If you’re a safe, low-risk driver with no driving convictions, you’ll likely see your insurance premiums go down. On the other hand, if you’ve had more than one serious or two minor driving convictions since June 10, 2019, your premiums could go up. Serious driving convictions include impaired driving, distracted driving, and excessive speeding, while minor convictions include not wearing a seatbelt, failing to stop, and speeding. Starting Sept. 1, ICBC’s car insurance changes will reward safe drivers at the expense of high-risk drivers.
How will my ICBC car insurance premium be calculated?
Your car insurance cost starts with a base premium and will go up or down depending on various factors. As of April 1, 2019, this base premium is $1,063. Your driving experience, listed drivers, crash history, how you use your car, and where you live all affect your car insurance premium. When other drivers are listed on your insurance policy, you or the person who drives the car the most will determine 75% of your insurance premium. Of the other drivers, the highest-risk driver will determine the other 25% of your insurance cost.
Will my ICBC car insurance go up if I add more drivers?
Starting Sept. 1, you’ll have to list everyone who will be driving your car. That’s because ICBC is shifting to a driver-based insurance model, where the driver of the car is held responsible for crashes they cause. Adding more drivers to your car doesn’t necessarily mean that your car insurance costs will go up – as long as the listed drivers have a clean driving record. If any learners will be driving your car, a new single premium of $130 to $230 per year will be added.
Can I protect my premium by repaying insurance claims?
ICBC wants to reward safe drivers, so they’re changing their policy for repaying insurance claims, starting Sept. 1. If you’re at fault for a crash, you can still repay the cost of the insurance claim to ICBC to protect your insurance premium – but only if the claim is $2,000 or less. This prevents high-risk drivers from hiding their real risk on the road by paying off large claims.
What discounts is ICBC offering to car insurance?
ICBC is offering two new discounts to car insurance starting Sept. 1, 2019. If your car has an original, manufacturer-installed autonomous emergency braking (AEB) system, you’ll get a 10% discount on your insurance premium. In addition, if you drive your car less than 5,000km a year, you’ll also get a 10% discount. When renewing your insurance, make sure to bring in your odometer reading to see if you qualify for this low-kilometre discount.
Want to know more about how ICBC’s changes will affect your insurance premium? Stop by any Johnston Meier Insurance location and we’ll be happy to answer your questions.