Topic 5 – Outdated Rating Creates Large Price Gaps
How it currently works
ICBC’s Basic insurance pricing is based on data that is more than 10 years old as it relates to how (rate class) you use your vehicle and where (territory) you live. This means some customers are paying higher rates and other drivers are paying less than they should based on ICBC’s current data on where they live and how they use their vehicle.
Proposal to make Basic rates more fair:
- Update vehicle location regularly in setting rates
Make adjustments to insurance rates to recognize the changes in communities and vehicle use across B.C. over the last 10 years. A lot has changed during this time, such as crash rates associated with the increases in traffic density, higher population growth and changes in the urban infrastructure. This information should be updated regularly and reflected in ICBC’s rate classes and territories to increase fairness.