ICBC Drivers Risk Premiums new for 2008

Copied from ICBC Website.

We had a heated discussion about the new ICBC Drivers Risk Premium.   Even seat belt tickets now affect your yearly ICBC Fee's.

Both the new Driver Risk Premium and the Driver Penalty Point program (DPP) will operate until the Driver Penalty Point program is phased out at the end of 2010. Until then, the driver will be billed the higher premium that applies under either program.

Driver Penalty Points and Driver Risk Premium do not affect Autoplan insurance premiums, and are billed whether or not the customer owns or insures a vehicle.

About five per cent of ICBC's customers will fall into the DRP program; 95 per cent of customers will not.

Why did I receive a warning letter from ICBC?

ICBC has sent warning letters to 144,000 drivers whose past experience on the road would result in them paying the Driver Risk Premium if they continue their bad habits.

You may have offences on your record like an excessive speeding ticket, two or more roadside suspensions, or multiple convictions for other on-the-road violations. This can include offences like;

• not wearing a seatbelt
• changing lanes without signaling
• turning without signaling
• passing on the right of the highway

and other violations.

You might not consider these types of offences high-risk, but customers who have three or more motor vehicle convictions of any kind are at least twice as likely as other drivers to cause crashes.

If you have received a letter and want more information, please call 1-866-566-7197 for a recorded message about the warning letters.

When and how will the DRP be calculated?

The new Driver Risk Premium is based on the number and type of motor vehicle convictions that have been shown to cause crashes and claims. These include excessive speed, roadside suspensions and/or Criminal Code of Canada vehicle-related convictions. The additional premium will be paid on top of the yearly cost of auto insurance, with those with Criminal Code convictions paying the most.

Like DPP, the DRP will be billed annually. For example, a driver with a birthday in January, 2009 will:

• Have their conviction history examined from August 1, 2007 to August 1, 2008 for the purposes of calculating DPP premium.
• Have their driving history examined from January 1, 2008 to August 1, 2008 for the purposes of DRP, except that offences that occurred prior to January 1, 2008 will be excluded, even if a conviction is registered in 2008.

A driving record that shows:

• Two or more roadside suspensions, and/or
• One or more excessive speed conviction, and/or
• One or more driving-related Criminal Code of Canada offences, and/or
• Three or more convictions of any kind* during the assessment period

will be billed according to this table.

* Convictions can include offenses like not wearing a seat belt, changing lanes without signaling, turning without signaling, passing on the right of the highway and other violations.

Amounts will continue to increase for more than 10 convictions.

How do I pay the DRP?

ICBC will mail a DRP invoice to you approximately one month before your birthday. The premium is payable by the payment due date on your customer account statement.

What happens if I don't pay the premium?

If you do not pay your Driver Risk Premium, interest will be applied to any outstanding amount. Insurance coverage provided with your driver's licence will not be valid and you will not be able to complete any driver's licence or vehicle insurance transactions until you pay any debts owing to ICBC or the government.

Can I do anything to reduce or eliminate my DRP?

You can eliminate the DRP premium if you voluntarily surrender your driver's licence to a driver licensing office for the entire billing period (starting the day after your birthday and ending on your next birthday). You may need to surrender your licence once per year for three successive years in order to eliminate premiums, because your convictions and roadside suspensions will count towards the DRP for three years from the date of conviction.

You can reduce your DRP if you have been prohibited from driving for 60 days or more within the billing period, or you have surrendered your licence for 30 days or more.

If you have voluntarily surrendered your driver's licence, you can have it reissued at any time if you visit a driver licensing office and pay the reduced DRP and a reinstatement and/or renewal fee, provided you:

• Do not have outstanding prohibitions or other debt to ICBC or the government, and
• Don't need to be re-examined.

You may also apply to ICBC Customer Contact for a refund or reduction in your billing if, for a minimum of 30 days in a row during the billing period:

• You were living in another province and lawfully held a driver's licence in that jurisdiction.
• You were not in Canada or the United States.
• You were incarcerated.
• You had medical reasons for being unable to operate a vehicle.

Valid supporting documentation must be provided to ICBC under any of these circumstances.

The DRP will be reinstated, effective to the date of the original billing, if you:

• Commit a violation of the Motor Vehicle Act, the Motor Vehicle Act Regulation, or the
• Criminal Code of Canada, and/or
• Are involved as a driver in any claim while your driver's licence is under suspension or surrendered.

Who do I contact if I have questions about my driving record?

If you want a copy of any conviction on your record or wish to discuss your driving record, please contact:

ICBC
Customer Contact
910 Government Street
Victoria BC V8W 3Y5
250-978-8300 or 1-800-950-1498