On Sept. 1, 2019, ICBC made changes to car insurance in B.C. They adopted a driver-based insurance model and changed the way they calculate insurance premiums. With this change to car insurance in B.C., new drivers and anyone who lists a new driver on their insurance policy will be impacted. We’re here to tell you how ICBC’s insurance changes affect new drivers.
All Drivers Must be Listed on your Insurance Policy
Under ICBC’s new driver-based insurance model, car owners will now have to list all drivers of their car on their insurance policy – including new drivers. 75% of your insurance premium will be determined by the person who drives the car the most, while the other 25% will be determined by the highest-risk driver. So, if you have two teenagers who are learning to drive your car, you’ll have to list them on your insurance policy. If any of them cause a crash while driving your car, your driving record will no longer be affected. That’s because crashes follow the driver, not the car.
New Premium for Learners
Are you listing a learner driver on your car insurance policy? There’s a new premium for that. To help cover the costs of crashes caused by learners, ICBC has introduced a learner premium ranging from $130 to $230 per year. The amount of this premium depends on where you live, and covers the cost of all learners using your car. On the other hand, if you have a learner driver in the family who wants their own car – and their own insurance policy – you might want to weigh the costs carefully. Because they have no driving experience, learners will have higher insurance premiums than experienced, low-risk drivers.
Learners Get Crash Forgiveness
ICBC understands that learners are inexperienced on the road and need time to become better drivers. Because of this, any crashes caused by learners won’t go on their driving record. This means your insurance premium won’t go up if a learner on your policy causes a crash. After all, they’re still learning – and will hopefully learn from their mistakes.
Driving History for New Residents
If you’re a new resident in B.C., that doesn’t necessarily mean you have to start off as a new driver. If you can prove your driver’s license history in your former province or country, it will count toward your driving experience. You no longer need to provide proof of insurance from your former residence, and you can now earn up to 15 years of driving experience (up from 8 years before Sept. 1). Just bring in your driver’s abstract when you go to get your B.C. driver’s license. Keep in mind that your ICBC insurance premiums might be higher in the first 3 years you’re driving in B.C.
Have more questions about the changes to ICBC’s insurance model and how they affect you? Drop by any Johnston Meier Insurance location to get answers and discuss your car insurance needs.