15 Jul Many Motorists Should Expect Large ICBC Rate Increases, Despite What ICBC Says
Failure to register every possible driver on the insurance could result in a breach of the contract of insurance
The way ICBC sells insurance is dramatically changing as of September 1, 2019. If you believe what the NDP government and ICBC has to say, they are making these changes in order to further penalize bad drivers and to make insurance cheaper for good drivers. In reality, the sell job from the NDP government and ICBC is far from the truth.
For many of the average households in British Columbia, you can expect a large increase in insurance premiums come September 1, 2019 if you are not the sole driver of your vehicle and other drivers with a lower safe driving discount are expected to operate your vehicle from time to time.
Come September 1, 2019, the insurance rates will be determined by the collective safe driving discount of all drivers that may drive the vehicle, not just the primary driver. The same applies regarding employees who periodically drive a company vehicle. This change will no doubt result in much higher insurance premiums in many cases as the insurance rate will no longer be based solely on the principle operator but rather, based in part on the poorer driving record of some household members or children without built-up safe driving discount.
Put another way, parents are suddenly going to have to pay a lot more insurance premiums when their teenage child first starts to drive the family vehicle, even if the teenager only drives the family vehicle rarely. Since the new driver has not built-up safe driving discount, and up to 25% of their safe driving discount is factored into the insurance premiums, it’s pretty easy to see that the insurance rates on many family vehicles will greatly increase. Also, if you have a driver in your household that happens to have had a few accidents in the past, the rates on every single family vehicle are likely to go up if that driver has a chance of operating the vehicle in the course of the insurance policy.
The new system will also require the owner of the motor vehicle to predict who may be driving the vehicle over the length of the insurance policy. The owner will have to come up with a list of potential drivers, their licence numbers and dates of birth before heading to the insurance broker. Failure to register every possible driver on the insurance could result in a breach of the contract of insurance and no insurance coverage in the event that the unregistered driver gets into an at-fault accident.
A breach would cause some devastating consequences including ICBC not covering the loss and also, ICBC going after you personally for money they paid out under a claim.
In summary, the new system is almost certain to cost families and employers a lot more on ICBC insurance. There will also be more opportunity for ICBC to deny claims to avoid pay-outs by breaching individuals of their contract of insurance. This is another increased cost of living on the average family in the Province of British Columbia.