Orlando Harmon
In British Columbia, ICBC's penalty points system is designed to discourage high-risk driving. These penalty points are assigned to a driver's record for committing certain driving offences, with the number of points varying depending on the type of offence. For example, speeding tickets typically earn a driver three points, while distracted driving results in four points. Drivers accumulating more than three points in a year will have to pay a Driver Penalty Point (DPP) premium, which is separate from their basic insurance premiums. The DPP premium increases with the number of points, with four points resulting in a $252 increase and 50 or more points leading to a premium of over $34,560. It's important to note that these points remain on a driver's record for five years, impacting insurance premiums and potentially resulting in driving prohibitions.
| Characteristics | Values |
|---|---|
| Penalty points | Assigned to a driver's record for certain driving offences |
| Number of points | Varies depending on the type of offence |
| Examples | Speeding (3 points), distracted driving (4 points), driving with a suspended or prohibited license (10 points) |
| Premium calculation | Based on the total number of points accumulated in a 12-month assessment period |
| Threshold for premium | Drivers with more than 3 points in the assessment period will have to pay a Driver Penalty Point (DPP) premium |
| Premium amount | Varies depending on the number of points, ranging from $214 for 4 points to $29,376 for 50 or more points |
| Billing frequency | Once per year, under the program (DPP or Driver Risk Premium) that results in the higher premium |
| Payment methods | Credit card, cheque, money order, cash, certified cheques, Visa, MasterCard, American Express, debit cards |
| Disputing points | The only way to dispute penalty points is by disputing the ticket |
| Record duration | Points and tickets stay on the driving record for 5 years |
| Premium reduction | Possible by surrendering the driver's license for a temporary period (minimum 30 days) or meeting certain conditions (e.g., living in another province, medical reasons, incarceration) |
| Non-payment consequences | ICBC may charge interest, refuse to renew vehicle insurance or driver's license, and impose insurance suspension |
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What You'll Learn
Penalty points and insurance premiums
In British Columbia, ICBC's penalty points system is designed to discourage high-risk driving. The more penalty points you have, the more you may have to pay in insurance premiums. These penalty points are like black marks on your driving record and are assigned when you commit certain driving offences. The number of points varies depending on the type of offence. For example, speeding tickets earn you three points, while distracted driving earns you four. More serious offences, such as excessive speeding, may result in higher premiums for Collision and Extended Third-Party Liability coverages.
Each year, ICBC reviews your driving record for the previous three years to assess your risk as a driver. They focus on the 12-month assessment period ending five months before your birthday. If you collect more than three points during this assessment period, you will have to pay a Driver Penalty Point premium (DPP). The premium amount depends on the total number of points you accumulate, ranging from $214 for four points to $29,376 for 50 or more points.
It's important to note that penalty points are separate from your basic insurance premiums and Autoplan insurance premiums. You will be billed for penalty points even if you don't own or insure a vehicle. Additionally, you will only be billed once per year, under either the Driver Penalty Point program or the Driver Risk Premium program, whichever results in the higher premium.
To reduce your DPP premium, you have a few options. If you give up your driver's licence for the entire one-year billing period, you won't have to pay the premium. Alternatively, surrendering your licence for at least 30 days during the billing period may result in a reduced premium. ICBC also offers premium reductions for drivers who have been prohibited, suspended, or off the road for certain reasons, such as medical or legal reasons. However, there are fees associated with reinstating your licence.
Penalty points can impact not only your ICBC premiums but also your annual auto insurance costs. While a couple of tickets may not directly increase your annual premium, multiple at-fault claims will. Additionally, in British Columbia, ICBC can increase premiums for optional insurance coverage if you accumulate too many penalty points.
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How to reduce or eliminate DPP premiums
The Driver Penalty Point (DPP) premium is based on your driving offences over a one-year period. The more penalty points on your driving record, the higher your premium will be. The DPP premium is separate from your Autoplan insurance premium and you will be billed for the higher of the two premiums.
Penalty points are collected on your driving record through traffic offences. Each offence carries a different number of points. For example, minor traffic violations generally cost between two and three points per incident, while distracted driving will cost you four points.
There are a few ways to reduce or eliminate your DPP premium:
- Give up your driver's licence for one year from your birthday. This will eliminate your DPP premium.
- Give up your driver's licence for at least 30 days during your billing period. This will reduce your DPP premium.
- If you have been prohibited from driving or have had your licence suspended for 60 days or more, you are eligible for a DPP premium reduction.
- If you were living in another province and held a driver's licence from there, were not in Canada or the US, were incarcerated, or could not operate a vehicle for medical reasons for a minimum of 30 days in a row during the billing period, you can apply for a refund or reduction in your billing. You will need to provide valid documentation to support these circumstances.
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The impact of a poor driving record on insurance
A poor driving record can have a significant impact on insurance, affecting both the availability and cost of coverage. Insurance providers use an individual's driving history as a key factor in determining the level of risk they pose as a policyholder. A driver with a history of accidents or violations is considered a higher risk and is often placed in a non-standard risk classification, resulting in higher premiums.
The duration of the impact also varies. In some states, serious offences like DUIs can remain on record for up to 10 years or more, affecting insurance rates for an extended period. In British Columbia, penalty points remain on a driving record for five years, influencing insurance costs during that time.
For individuals with a poor driving record, obtaining insurance can be challenging. Mainstream insurance companies may refuse to insure high-risk drivers, forcing them to seek coverage from specialised providers or assigned risk insurers. However, even with a poor driving record, there are strategies to mitigate the impact. Taking a defensive driving course, improving credit scores, and shopping around for insurance can help individuals with less-than-perfect driving records find more affordable coverage.
While improving one's driving record is the most effective way to reduce insurance costs over time, there are options for those with a history of traffic violations or accidents. By understanding the impact of their driving record on insurance and utilising available strategies, individuals can work towards obtaining more favourable insurance rates.
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The process of disputing penalty points
The only way to dispute penalty points is by disputing the ticket that you have received. Tickets and points are kept on your driving record for five years.
If you want to dispute a ticket (allegation) or the amount of the fine, you can do so by following these steps:
- Identify the offence: Each driving offence is associated with a specific number of points. Look up the fine and point value for the specific traffic offence you have been charged with. This information can be found on the ICBC website or by contacting them directly.
- Gather evidence: Collect any evidence that may support your dispute. This could include photographs, witness statements, or any other relevant information that can help prove your case.
- Contact ICBC: Get in touch with ICBC customer service to initiate the dispute process. You can contact them by phone, mail, or in person at a driver licensing office. Provide them with the details of your ticket and the evidence supporting your dispute.
- Follow up: Stay in communication with ICBC throughout the dispute process. They may request additional information or documentation from you. Respond promptly to any requests to ensure the process moves forward.
- Resolution: ICBC will review your dispute and make a decision. If your dispute is successful, the ticket and associated points may be removed or reduced from your driving record. If your dispute is denied, you may have the option to appeal the decision, but understand your rights and options in this situation.
Remember, it is important to act promptly when disputing a ticket as there may be time limits for filing a dispute. Always keep records of your communications with ICBC and seek legal advice if you are unsure of your rights or options.
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The difference between DRP and DPP
The ICBC's Driver Risk Premium (DRP) and Driver Penalty Point premium (DPP) are separate from Autoplan insurance premiums. They are billed even if you don't own or insure a vehicle. The DRP is calculated just before your assessment period, which is usually your date of birth, and is based on your offences from the previous three years. The DPP premium is based on your driving offences over a one-year period. The more convictions or points accumulated, the higher the premium.
The DRP and DPP programs operate in parallel, and you will only be billed under one program each year, whichever results in the higher premium. You will receive the DRP/DPP premium invoice approximately one month before your assessment date. The DPP bill applies to driving convictions that you received during the 12-month period ending five months before the assessment date.
You can reduce the cost of your DRP by giving up your licence for an entire billing period or at least 30 days during a billing period. To be eligible for a reduction, you must provide valid documentation showing that, for a minimum of 30 days in a row during the billing period, you met one of the following conditions:
- Living in another province and lawfully held a driver's licence there
- Not in Canada or the United States
- Incarcerated
- Unable to operate a vehicle for medical reasons
Similarly, you can reduce the cost of your DPP premium by giving up your driver's licence for one year from your birthday or for at least 30 days during your billing period. Premium reductions are also available to drivers who have been prohibited, suspended, or off the road for certain other reasons.
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Frequently asked questions
ICBC's penalty points system is designed to discourage high-risk driving. When you get a ticket for a driving offence, you'll typically get penalty points on your driver's record. The more points you get, the more you may have to pay in insurance premiums.
The number of points varies depending on the type of offence. For example, speeding tickets earn you three points, while distracted driving earns you four. Under the Driver Penalty Point premium (DPP), the ICBC reviews the amount of penalty points a driver accrues over a one-year period.
The dollar amount of the penalty point premium depends on the number of points you received in the assessment period. For example, if you have six penalty points, you will have to pay a penalty point premium of $367. If you have four points, you can expect a $252 increase in your premium.
You have a few options to reduce the cost of your Driver Penalty Point premium (DPP). If you give up your driver's licence for one year from your birthday, your DPP premium can be eliminated. If you give up your licence for at least 30 days during your billing period, your DPP premium could be reduced.
