"The changes will not increase the total funds that ICBC collects through basic policies, but instead will rebalance individual driver premiums and reset the way rates are determined". That's going to be determined using current data, rather than the 10-year-old numbers the agency is now using. "When British Columbians were asked for their feedback on this topic, one message came out loud and clear, lower-risk drivers shouldn't be paying the same as some high-risk drivers".
The government says if the new measures were enacted today, two-thirds of drivers would pay less.
Most customers are expected to transition to their new basic premium within three years.
Eby said ICBC's 30-year-old pricing model has "increasingly failed to make sure that drivers are held accountable" and accused the province's previous Liberal government of failing to take timelier action to make premiums fairer for British Columbians. He said less-experienced drivers cause a disproportionate number of crashes and fatalities in B.C. and higher premiums better reflect their risks.More news: Man United wins opener against Leicester City
The proposed model means drivers with more years of experience and no at-fault crashes would see greater discounts.
New discounts will be made available for those with manufacturer-installed automatic emergency braking systems in their vehicles as well as those who drive fewer than 5,000 kilometres a year.
During the announcement, he said 39 per cent of B.C. motorists will see reductions of up to $50 a year, while 13 per cent will save between $50 and $100. It said 17 per cent of drivers would see an increase of more than $100. Consequently, the B.C. government has directed the insurance provider to file an application by August 15th.
The current model to calculate rates used by the Insurance Corporation of B.C.is "broken", he said.More news: Justin Bieber Gets New Haircut With Hailey Baldwin Following Tears Fest
The province is also proposing adjusting basic insurance discounts for inexperienced drivers to better reflect their risk, making at-fault crashes have a larger impact on premiums, updating rate classes and territories for the first time in more than 10 years to reflect changes in traffic density, population growth and changes to urban infrastructure.
The proposed changes align with feedback government received from almost 35,000 British Columbians on how to make insurance fairer.
Eby has called the insurance corporation a "financial dumpster fire" with ICBC losing more than $1 billion a year ago alone.
After calling ICBC a "financial dumpster fire" in January this year, Attorney General David Eby vowed to bring in changes that would penalize bad drivers and tackle the corporation's projected $1.3 billion loss.More news: Perseids to dazzle PH skies