ICBC is clamping down on reckless drivers by adjusting the fairness of basic insurance rates.
The change was made on Friday and takes effect on May 6, 2018.
ICBC Board Chair, Barry Penner says this will benefit the insurance company’s bottom line and safe drivers.
“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.”
Penner adds they are following the same formula as in other provinces. “If you’re causing crashes through recklessness or careless driving and you have more than one at-fault claim you’re going to pay a significant amount more for you auto insurance. This is done in other jurisdictions and this is an idea that ICBC and the province thinks makes sense.”
Under the new system, long-term safe drivers will continue to have their discount protected if they’re at fault for one crash.
That won’t be the case for motorists who compile multiple at-fault crashes on their record.
BC saw 20,000 more crashes last year than in 2015 and over a three-year span crashes resulting in a claim spiked 23%.