According to a new study, ICBC is apparently making older, safer drivers pay hundreds more in premiums to make up for younger, riskier drivers.
“It is ICBC’s policy to charge drivers the same rates regardless of their age. Yet, much evidence shows that the incidence of accidents differs markedly among drivers of different ages” reads a Fraser Institute study.
“The costs of personal injury and property damage caused by drivers from 16 to 20 years old are estimated to be $900 more than for average drivers. The costs for drivers between 21 and 34 are also higher”.
RELATED: Higher Penalties For High-Risk Drivers In BC Are Now In Effect
As a result, “ICBC requires safer drivers to pay higher premiums to subsidize riskier drivers”.
Is this likely to change anytime soon?
ICBC is currently adding $100 to its premiums for inexperienced drivers. However, the financial impact of this move is expected to be minimal.
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Financial Troubles For ICBC
Back in November of last year, it was reported that the public insurance company was quickly heading towards a $1 billion deficit.
The current government hopes to lessen this financial burden, and has made some steps to doing so; however, the challenge is daunting, to say the least.
One of the measures now in place is increased fines for distracted drivers. Distracting driving now causes more accidents than drunk driving, and two fines in a three year period will land offenders with a whopping $2000 fine.
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