There has been some misinterpretation around one element of our new basic insurance rating model, the unlisted driver protection, which will come into effect next September.
Today, one in five crashes is caused by someone other than the vehicle owner. This is a big issue because, if you lend your car to a neighbour or friend and they cause a crash, it's your premiums that go up and your driving record that is affected - that's not fair.
Under our new model, at-fault crashes will follow the driver, and not the vehicle owner - that's fair.
Vehicle owners will now be asked to list all drivers who may drive their vehicle on their insurance policy.
We recognize this is a shift for British Columbians but the listing of other drivers is a common industry practice across North America and beyond. In fact, in many other jurisdictions, insurers will likely not cover your claim if an unlisted driver crashes your vehicle.
Our new model will give customers options if they want to let others, who are not household members or employees, occasionally drive their vehicle: customers will be able to add the occasional driver to their policy, purchase extra protection for $50 annually to cover unlisted drivers (one fee, not per driver), or run the risk of a one-time penalty if an unlisted driver causes a crash while driving their vehicle.
Exceptions will also be made for situations like medical emergencies and programs like Operation Red Nose.
Importantly, these changes have been designed to be revenue neutral - they are about improving fairness, not about increasing revenue.
Nicolas Jimenez
President & CEO
Insurance Corporation of
British Columbia
