Sweeping changes to the ICBC rate model were made at the onset of September 2019. Leading into it, Park Insurance had provided updates regarding all amendments along the way. But, if you haven’t had a chance to read our blog every week, some questions about the ICBC overhaul may persist. So, below we have provided succinct FAQs to help clear up any lingering questions.
Answers to Frequently Asked Questions About September 2019 Updates to the ICBC Rate Model
Who Do I Need to List on My Policy?
You should list anyone who drives your car, such as:
- Household members and employees (of the principal driver, registered owner, or lessee if the vehicle is leased)
- Others, such as friends and family, who use your car regularly (more than 12 times in a year)
- Learners
Household members are not required to be listed if they do NOT drive the vehicle. However please note, should an unlisted household member drive the car (even one time or even without permission) there would be financial repercussions if they are involved in a claim. If there is a reasonable chance that someone in your household will use your vehicle even once during the year, it’s a good idea to list them. Remember, you can add or remove listed individuals at any time during the term of your policy.
It is also recommended that you opt for Unlisted Driver Protection. You do not have to pay for this protection initially and this coverage will continue to be free as long as an unlisted driver does not cause an accident in your vehicle. However, if you would like to continue with this coverage following a claim with an unlisted driver, you will need to pay for it at your next renewal. Please note that Unlisted Driver Protection does NOT apply to household members, employees or anyone who drives your car more than 12 times a year. But, it will give you peace of mind if you need to lend your car occasionally to other drivers not listed on your policy.
What Do I Need to Bring When I Purchase/Renew My Insurance?
Whether you need to purchase a new policy or renew an existing one (to account for updates) please make sure that you bring the following:
- Driver’s licence number and date of birth for each driver you want to list on your policy. Be sure to clearly state the full legal name of the principal driver as the majority (75%) of the premium will be based on the driver history of the principal driver.
- Photograph of your current odometer reading if your vehicle is driven less than 5,000 km in a year. This is important because a potential discount (10%) may apply at your next renewal.
- Proof that your vehicle has a factory-installed autonomous emergency braking (AEB) system (where applicable). Vehicles equipped with AEB will be eligible for a discount (10%).
How Much Will I Pay?
Each policy will start with a base premium, which is current $1,063. From the base, the premium either increases or decreases depending on each individual’s factors that fall under the driver and vehicle categories. What you will pay is now calculated on the following factors:
- Your crash history. The more crashes you have caused, the more you will pay.
- Listed driver crash history.
- Years of your driving experience accounts for 75% of the calculation. The more experience, the less you will pay.
- Years of listed driver experience accounts for 25% of the calculation.
- Whether or not a learner will be driving your car. If so, a new additional premium (ranging from $130 to $230 per year) will apply.
- Where you live in relation to where you need to drive on a daily basis.
- How you use your car (day to day, recreation, business, etc.)
ICBC has provided an online tool to help you perform this calculation here.
Should I Repay a Previous Claim?
Under the old model, as a driver in need of a repair from an accident you would be able to look at the claim-related-scale (CRS) and determine exactly how much your premiums would be affected by getting the repair work done. But under the new model, you’re wondering about how a claim may affect your premiums when the time comes for renewal. As of September 2019, the Province has extended the limitation period for repaying previous insurance claims. If this rule applies to you, you now have until August 31, 2020 to decide whether to repay claims made between March 1 (2017) and August 31 (2019). This is essentially a one-year grace period which allows you (as applicable) the opportunity to gather enough information and become accustomed to the new rating model.
Note: As of September 2019, claim repayment is only possible if the claim amount is $2,000 or less.
Will I Lose Senior and/or Disability Discounts?
If you’re a senior, don’t worry because you will continue to receive your Basic insurance discount. Better yet, will now benefit from your well-earned years of driving experience. You can now credit up to 40 years crash-free driving which has gone up significantly from just nine-years under the old model. That said, your discount will be reduced if you have caused a crash and will be eliminated if you have caused a second crash within the 10-year scan period. Again, the new rate model awards great driver history.
No changes have been made to current discounts for qualifying persons with disabilities.
Are There Changes to Optional Insurance Coverages Too?
Yes. Updates have been made to they way ICBC calculates premiums for Optional coverages, and they align with the changes made to the Basic rate model to ensure greater accountability for driving decisions. The amendments which apply to Collision and Extended Third Party Liability coverages includes the following:
- If you have two or more convictions for minor offenses (i.e. general speeding, failure to abide by a road sign, etc.) or one serious offense (i.e. impaired driving, excessive speeding, etc.) within a 3-year period, you will see a premiums increase.
- If you have convictions resulting from driving violations that occurred on or after from June 10, 2019 (when the changes were made public) your Optional premiums will be impacted as of September 1, 2019. The premiums will increase with the frequency and seriousness of your convictions. ICBC will ultimately scan back over a three-year period for driving convictions by June 10, 2022.
I Plan on Using My Vehicle to Operate Uber/Lyft. How Does the New Rate Model Apply?
As of November 2019, ICBC does not yet have a commercial insurance policy in place for ride hailing drivers. However, they will be introducing a new insurance product to support this service very soon. Candidate drivers will need to connect to an independent insurance broker to keep abreast of developments.
I Need to Budget. Can I Get an Accurate Estimate Beforehand?
If you are within 44 days of renewing your insurance you can use this ICBC tool to get a fairly precise estimate as long as you enter accurate information based on the qualifying factors addressed above.
Can a Broker Help Me navigate all the changes?
Absolutely. It is our job to stay abreast of the latest changes and help our clients make the transition. Again, be sure you have all of the potential drivers’ names, license numbers, and dates of birth ready for presentation and we can help you with the rest!
Didn’t find the question (and answer) you were looking for? Simply contact Park Insurance right away and we can address it for you. In addition, an independent broker can do a comprehensive assessment of your current policy, driver history, and all other factors to ensure that you have the right coverage for your unique needs. It all starts with a friendly phone call. Call us today at 1.800.663.3739.