Not listing all the drivers for ICBC insurance costing some car owners big time - InfoNews

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Not listing all the drivers for ICBC insurance costing some car owners big time

Image Credit: ADOBE STOCK
July 16, 2020 - 6:00 AM

New ICBC rules are costing hundreds of car owners thousands of dollars after people not listed on the insurance crashed the vehicle.

Those rules, which went into effect on Sept. 1, 2019, included a request that owners, when they buy their auto insurance, list everyone who will regularly be driving their vehicle in the coming year. The premium is then calculated on a formula that takes into consideration what insurance would cost for the people with the best and worst driving record.

But many people did not do as they were asked in order to avoid a higher insurance premium and 444 have been hit with an extra charge – averaging almost $3,000 each – after an unlisted driver caused an accident in the insured vehicle.

"We do recommend they do properly list all the drivers who will be regularly driving the vehicle in order to avoid something like this happening to them," ICBC communications officer Joanna Linsangan told iNFOnews.ca.

READ MORE: Big, possibly expensive, changes to ICBC coming in September

Listing such drivers is only a recommendation not a requirement and the only way to catch regular drivers not on the list is if they cause an accident.

The extra fee is considered a 'charge' not a fine and is called an Unlisted Driver Accident Premium.

It's calculated on two different parts of the insurance premium.

On basic insurance, the penalty is 15 times the difference between what basic insurance was paid and what should have been paid. If that difference was $100 per year, the penalty would be $1,500 and capped at $5,000.

If the owner carries optional insurance with ICBC, they will be charged twice what they paid versus what they should have paid on the optional portion of their insurance. There is no maximum on the portion so the total cost could be well over $5,000.

ICBC is not charging on the optional portion for accidents that happen before Sept. 1, 2020.

All regular drivers of a vehicle are supposed to be listed on the insurance, including all household members and all employees, no matter how many days they drive. People who will drive the vehicle more than 12 days in a calendar year should also be listed.

The money collected through the premium charge are to go directly towards lowering costs for other drivers, ICBC states.


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