One of the biggest changes to the way ICBC policies work is that vehicle owners are now listing drivers–all drivers–not just the principal operator. By listing all the household members, employees, and other drivers who will regularly operate the car, ICBC can calculate the risk more accurately and charge the right price for the actual risk they present.
Listing drivers is a practice that many private insurers already do. The premiums charged to vehicle owners should match up with the level of risk their vehicles present. Under ICBC’s old model, one in five crashes were caused by a driver that was not listed on the policy. This means one in five policies probably weren’t paying the right price.
Impact to Premium
What most people really want to know is how much listing drivers will cost them. The bottom line is that will depend on how those drivers compare to the principal driver in terms of risk. The level of risk is determined by how long they have been driving, and how many crashes they are at fault for.
Most of the premium–75%–is still based on the principal driver. To figure out the remaining 25%, they look to the riskiest driver that is listed on the policy. If a listed driver is riskier, the premium goes up. If a listed driver is the same or less risky than the principal driver, the premium will stay the same, or possibly go down.
How much those prices change will also depend on how different in risk the drivers are from one another. If the listed driver has been driving almost the same number of years as the principal driver, the price difference will be minimal. But, if a listed driver has very little experience, or has had more crashes compared to the principal driver, the price difference will be greater.
Different Types of Drivers
When listing drivers, if one or more is a learner then the learner premium is charged. The learner premium ranges from $130-$230 per year. It’s one cost to cover all learners that operate that vehicle. This fee isn’t an indication of what that driver’s risk factor will be when they start driving solo and novice drivers can expect to pay higher rates.
If you have only recently arrived in British Columbia, or will have family or friends visiting from out of the province, they can also be listed on a policy as a driver. When listing drivers such as these, the broker will need to see their driver’s licence, to ensure all their details are entered correctly into the system. ICBC.com has more information about drivers moving to BC and the process of getting your BC license.
Since ICBC has no access to out of province driver history, all out of province drivers will pay a higher rate. Until they obtain a BC driver’s license, this rate will not change to reflect additional years of safe driving.
Unlisted Driver Protection
How often does someone have to drive a car to be listed on the policy? Anyone who is regularly expected to operate the vehicle should be listed. However, drivers can be added and removed to reflect changing circumstances.
We know that anticipating every possible driving scenario is impossible and in some situation, an unlisted driver may operate your vehicle. To prevent the financial penalty if an unexpected driver crashes your vehicle, you can add Unlisted Driver Protection to your policy.
The Unlisted Driver Protection does not apply to household members, employees, or any person who has crashed any of your vehicles in the last 5 years. If you’d like more information on Unlisted Driver Protection, feel free to stop by one of our offices, or read more about it on ICBC.com.