Submitted by Cedric Hughes on Mon, 12/10/2007 - 14:37
In February 2007, Road Rules itemized the ‘costs’ of a ticket for committing a motor vehicle offence “from which no crash resulted”. These included the cost of the ticket, penalty points, and, depending on the total number of penalty points accumulated, a penalty point premium payable on license renewal. This list did not include any increase in insurance cost - crashes not tickets increase the cost of car insurance. Road Rules then wrote, “but this may now change” and, in effect, it now has. The BC Utilities Commission recently approved ICBC's proposal to target high-risk drivers, regardless of whether they have actually been involved in a crash, through a new mechanism called the Driver Risk Premium (DRP).
Starting January 1, 2008, DRP replaces the current Driver Penalty Points program over a three-year transition period. During this transition period—January 2008 to January 2011— the two programs will run parallel, meaning that drivers with offences will pay the higher of the two premiums, on top of the yearly cost of their car insurance. But like the old program DRP is tied to the driver's license and will have to be paid regardless of whether the driver owns or insures a vehicle.
DRP involves an annual scan—linked to birthdates—of each driver's license. If this record contains a Criminal Code driving-related conviction, motor vehicle convictions or roadside suspensions, the driver will be assessed a Driver Risk Premium. Approximately one month prior to their date of birth, drivers with convictions/suspensions will receive their Driver Risk Premium bill in the mail. (Happy Birthday!)
The Driver Risk Premium will apply to offences that occur on or after January 1, 2008. Therefore, beginning in January 2009, drivers who have during the previous year been convicted of a Criminal Code driving-related offence or motor vehicle offences or who have received roadside suspensions will be assessed a Driver Risk Premium payable for the next three years following the assessment.
A general guide to annual DRPs triggered by the various types of convictions indicates as follows: for one criminal code conviction—for example impaired driving or dangerous driving—an annual DRP of $905 ($2,715 in total); one excessive speeding conviction $320 ($960 in total); two 24 hour roadside suspensions $370 ($1110 in total); and three motor vehicle related offences, for example speeding or disobeying a signal $350 ($1050 in total). Drivers with multiple convictions over the stated minimum number in the previous three-year period will pay even more.
BC’s highest risk drivers will hear directly about these changes in warning letters from ICBC. About 5% of BC’s licensed drivers—approximately 120,000 drivers—whose driving habits qualify them for the new Driver Risk Premium are on this list.
The Driver Risk Premium targets high-risk drivers. The cost to drivers for convictions and/or roadside suspensions will now increase to hundreds or even thousands of dollars per year for at least three years. And it also rewards good drivers. ICBC says that revenue from the Driver Risk Premium will be used to offset basic insurance premiums for good drivers.
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