BC wants to change auto insurance to reward penalty model
VICTORIA—The minister in charge of public auto insurance in British Columbia says he’s looking to remodel the system to reward good drivers with lower rates and penalize poor drivers with higher penalties.
David Eby says a consultation process starts March 8 with a public survey that proposes major incentives for low-risk drivers by changing current discount and penalty provisions.
Eby says the changes are part of the government’s plan to modernize the Insurance Corp. of B.C. and restore the Crown corporation’s dismal financial state, which he has described as a dumpster fire.
The recent provincial budget forecast a $1.3-billion deficit at ICBC this year.
Eby says the government will introduce legislation with measures to save money at ICBC, including a $5,500 cap on claim payouts for minor pain and suffering.
The public survey, which includes plans to limit driver discount options, closes on April 5.