ICBC floats new basic insurance plan that would reward good drivers
But the company vows it has killed an idea where drivers who received just one speeding ticket could expect to pay three years of higher rates
BY JONATHAN FOWLIE, VANCOUVER SUN MAY 14, 2012 2:02 PM
VICTORIA - One year after it was forced to retract a controversial proposal for how to set basic rates, the Insurance Corp. of B.C. is today launching a widespread public consultation to help vet its newest set of ideas.
The publicly-owned company says it is seeking a fairer system that better rewards good drivers, and ensures bad drivers pay more.
But the company vows it has killed an idea it floated almost exactly a year ago where drivers who received just one speeding ticket could expect to pay three years of higher rates.
"Last May, there was a fair bit of controversy over single speeding tickets and the concept that they would be used to increase people's premiums," Steve Crombie, vice-president of corporate communications, said Monday.
"That is completely off the table. It is not part of this consultation and we're not changing the current way we deal with penalty points and driver risk premiums."
Instead, Crombie said, the company is proposing a driver-based system that sets rates by looking at a combination of driving experience and crash history...
http://www.vancouver...l#ixzz1utVh3GP6
Oh I see what they've done here: rather than
punish bad drivers, they're going to reward
good drivers. Why yes, that's totally different!
It's a shame that as a customer, ICBC won't give me what I really want: mileage-based insurance. From an actuarial perspective, I present a far, far lower risk than someone who commutes daily precisely because there is less opportunity me to cause an accident. I walk and take the bus to work, and I pay moderately less insurance than if I drove to work everyday, rather than far less insurance because I present less of an actuarial risk.
Unfortunately, the system relies on chumps like me to overpay and so introducing something like this would have a massive impact on revenue, especially for those who have second, third and/or casual vehicles.
I would urge everyone to tell ICBC what they think either at their local open house or online:
http://www.publiceng....com/index.html