Fireworks are sure to fly, when the Insurance Corporation of British Columbia (ICBC) files an application to the B.C. Utilities Commission this summer.
What are they thinking? A 23% auto-insurance premium increase (an average of a $1000 increase over 3 years) for a single speeding ticket conviction!?
ICBC is owned by the Province of British Columbia and provides auto-insurance to more than 3 million drivers.
ICBC wants to modernize itself and this would include:
The B.C. Utilities Commission both sets and regulates ICBC’s basic insurance rates. If ICBC expects any of the changes it wants to make to be realized, it will have to make an application to the B.C. Utilities Commission and have the changes approved, especially the “driving record model”.
ICBC is expected to be in front of the B.C. Utilities Commission this summer.
ICBC confirmed this week that its application to change rates could result in a rate increase for three years after a single speeding ticket, and further rate reductions for drivers who maintain a clean driving record. If approved by the B.C. Utilities Commission, the changes would take effect in 2014, but infractions in the next three years would affect future rates; while reducing the maximum basic insurance discount for driver’s who have a clear driving record and manage to maintain that rate.
Under the ICBC’s current claim-rated scale, a driver moves down the scale for each year they do not make an at-fault crash claim. Every claim-free year increases the discount by 5% until the driver reaches the maximum basic insurance discount.
Recently appointed B.C. Liberal Public Safety Minister Shirley Bond says she’s looking forward to a “spirited discussion” on that point with officials of the Insurance Corp. of B.C. before it proceeds with its application to the B.C. Utilities Commission to attempt to adjust rates.