Haris Ashley
If you are involved in a car accident, your insurance rates may be affected. ICBC considers several factors when determining insurance premiums, including prior claims, driving experience, and crash history. If you are found to be at least 25% at fault for an accident, your ICBC Basic Autoplan premiums may increase. The more crashes you are responsible for, the higher your insurance rates will be. On the other hand, if you have a long, claim-free record, your rates may not be impacted as significantly. In the event of an accident, ICBC offers Enhanced Accident Benefits to anyone injured in a motor vehicle crash, providing coverage for medical expenses, rehabilitation, and lost wages. Additionally, collision coverage can help pay for vehicle repairs, regardless of who is at fault. Understanding how accidents impact insurance rates is crucial for drivers, as it can influence their financial obligations and coverage options.
| Characteristics | Values |
|---|---|
| Effect on insurance premiums | If found responsible for a crash, basic insurance premiums will likely increase. The more crashes, the more you pay. |
| Effect on other policies | May impact any policies where the driver is listed. |
| Effect on optional insurance | Costs for optional insurance may increase. |
| Effect on future premiums | ICBC reviews the details of every crash to determine responsibility and degree of fault. This may affect future insurance premiums. |
| Effect on deductible | If more than 25% responsible for a crash, you will likely pay more for insurance at the next renewal or purchase. |
| Effect on claim-rated scale | ICBC uses a claim-rated scale (CRS) to define surcharges and discounts that can increase or reduce the amount paid for coverage. |
| Effect on driving record | The crash will go on the driver's record and may impact insurance premiums at the next renewal or purchase. |
| Effect on wage loss | If unable to work due to injury from a crash, ICBC provides wage loss benefits of 90% of net income up to a maximum of $119,000 gross annual income. |
| Effect on medical expenses | ICBC Basic insurance covers medical and rehabilitation expenses. Enhanced Accident Benefits are available to anyone injured in a crash in B.C. |
| Effect on vehicle repairs | If responsible for a crash, ICBC Collision coverage pays for repairs to the driver's vehicle and the other driver's vehicle. |
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What You'll Learn
ICBC claim history
The primary way ICBC claim history influences insurance costs is through the corporation's claim-rated scale (CRS). The CRS system assigns a level to each driver, starting at level 0 when they first start driving in B.C. For each claim-free year, the driver's level decreases by one, resulting in a lower premium. Conversely, if a driver is found to be at least 25% at fault for an accident, their level on the CRS increases, leading to a surcharge on their premium. The number of steps moved up the CRS is based on the driver's current level. For example, if a driver has an accident after one claim-free year, they would move up six steps to level 5, resulting in a 55% surcharge.
If a driver is found to be responsible (at fault) for a crash, their ICBC Basic insurance premiums will likely increase at the time of renewal, unless they have a long history free of claims. This may also impact any policies where they are listed as a driver, and the costs of any optional insurance they have, such as collision coverage. Additionally, the more crashes a driver is responsible for, the more they will generally pay in insurance premiums.
If a driver disagrees with ICBC's determination of fault, they can consult an ICBC claims lawyer to help contest the decision. The lawyer will investigate the case and gather evidence to present to ICBC, potentially avoiding premium increases.
Drivers in B.C. can access their driving record, insurance history, and claims history by requesting them from ICBC. These records can be received via email or mail, although email transmission carries a certain level of risk regarding sensitive personal information. Claims can also be reported and viewed online or by phone, allowing drivers to quickly check their claim details and provide necessary information.
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Premium increases
If you are found to be responsible for a crash, your ICBC insurance premiums will likely increase the next time you renew or purchase insurance. The more crashes you are responsible for, the more you will pay in insurance. ICBC uses a claim-rated scale (CRS) to determine premium increases or decreases. This scale defines an array of surcharges and discounts that can increase or reduce the amount you pay for coverage, ranging from a discount of 43% to a surcharge of 205%. For each year in which you do not have a claim for which you are at least 25% at fault, you will move down one level on the CRS, resulting in a discount. However, when you have an accident for which you are at least 25% at fault, you move up several steps on the CRS, resulting in a surcharge. For example, if you have no claims during your first year of driving, you will drop to level -1, corresponding to a 5% discount. On the other hand, if you are at fault for an accident after your first claim-free year, you would move up 6 steps to level 5, resulting in a 55% surcharge.
In addition to the CRS, ICBC considers other factors when determining premium increases after an accident. These factors include your driving experience, crash history, and any convictions for driving offences. If you are an inexperienced driver, your premium discount will be reduced if you cause a crash and eliminated if you cause a second one within the scan period. The scan period is a ten-year timeframe that ICBC uses to review your crash history. Additionally, if you are convicted of two minor driving offences or one serious offence, your premiums for optional coverages such as Collision and Extended Third Party Liability will increase.
It is important to note that if you have a long, claim-free record before an accident, your premium may not be impacted. In this case, it might be financially sensible to repay the cost of damages to ICBC to avoid any increase in your future premium. Alternatively, if you have Optional insurance such as Collision coverage, it will pay for your vehicle repairs even if you are at fault for the crash.
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Fault and liability
ICBC considers several factors when determining fault or liability in a crash, including legislation covering the rules of the road, previous court cases, and crash details. The company will collect information about the incident, including statements from all drivers involved, as well as witnesses and passengers, if necessary. Vehicle damage and incident statements will also be used to help understand what happened. Once fault has been determined, ICBC will send a letter notifying the driver of their level of responsibility.
If a driver is found to be responsible for a crash, their ICBC Basic insurance premiums will likely increase when they renew or purchase insurance, unless they have a long, claim-free record. The more crashes a driver is responsible for, the more they will pay in insurance. In some cases, such as when a learner driver is responsible for a crash, premiums may not be affected. Additionally, if a driver has Collision coverage, it will pay for their vehicle repairs, even if they are 100% responsible for the crash.
If a driver is not found responsible for a crash, their insurance premiums will not be affected, and any necessary repairs will be covered by the other driver's insurance.
It's important to note that ICBC offers Enhanced Accident Benefits to anyone in B.C. who is injured in a motor vehicle crash, regardless of who is at fault. These benefits cover medical and rehabilitation expenses, including physiotherapy, chiropractic care, occupational therapy, registered massage therapy, clinical counselling, and psychological services. Enhanced Accident Benefits also cover dental care, alternative therapy, and home support if needed.
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Claim-rated scale (CRS)
The primary way in which your ICBC claims history affects your ICBC premium is by changing your level on ICBC’s claim-rated scale (CRS). The CRS defines an array of surcharges and discounts that can increase or reduce the amount you pay for coverage, ranging from a discount of 43% to a surcharge of 205%. When you first start driving in British Columbia, you begin at level 0 on the CRS, which corresponds to the base rate. For each year in which you are not involved in a claim for which you are at least 25% at fault, you will drop one level on the CRS. For example, if you have no claims during your first year of driving, you will drop to level -1, corresponding to a 5% discount. Conversely, if you have an accident for which you are at least 25% at fault, you move up the number of steps specified in the CRS for a person at your level. For instance, if, after your first claim-free year of driving, you were at fault for an accident, you would move up 6 steps to level 5, corresponding to a 55% surcharge.
The CRS system works like a set of stairs. Each year without a claim moves you down a step, earning you a discount from where you were before. You could earn a discount of up to a maximum of 20 years on the scale. However, an at-fault accident would cause you to climb back up. The number of steps you move up depends on where you started and how many accidents you have had. While this model is usually simple to understand, it has been criticised for not being entirely fair. For example, new residents of British Columbia would not qualify for a discount in the CRS model unless they could supply a verifiable Claims History Letter, which could be difficult to obtain depending on their circumstances.
From September 1, 2019, the way in which ICBC sets Basic Autoplan premiums changed. According to ICBC, these changes should make rates fairer by making British Columbia drivers more accountable for their own driving history. Under the new model, each British Columbia-licensed driver is assigned an Individual Driver Factor, which is based on the number of years of claim-free driving and accidents that a driver has. This model treats learner drivers differently, as ICBC found that learner drivers were not likely to cause a crash, but novice drivers still crashed at a rate expected of an inexperienced driver. The old model awarded each year with a learner license with a discount, meaning that by the time some drivers received their novice license and started driving unsupervised, they already had the maximum discount. The new model starts counting discount years when a driver receives their novice license.
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Medical and rehabilitation expenses
If you are injured in a motor vehicle crash, ICBC's Enhanced Accident Benefits can help you access medical and rehabilitation care. Treatments can include physiotherapy, chiropractic care, occupational therapy, registered massage therapy, clinical counselling, psychological services, kinesiology, and acupuncture. Dental care, alternative therapy, and home support following an injury may also be covered by Enhanced Accident Benefits.
If you are unable to work due to your injuries, you may be eligible for the income replacement benefit, which provides 90% of your net income in wage loss benefits, up to a maximum of $119,000 gross annual income. If you earn more than this amount, you can purchase Income Top-Up coverage to cover the difference.
If you were the primary caregiver of another person before the crash and are no longer able to provide that care due to your injuries, you may be eligible for a weekly payment to cover new caregiving expenses.
ICBC's Enhanced Care coverage includes pre-approved treatments for the first 12 weeks following a crash. It is important to book appointments promptly to maximise the benefits. Some healthcare providers can directly bill ICBC, but in other cases, you may need to pay upfront and then submit a claim for reimbursement within 180 days. Out-of-pocket expenses such as mileage, transit, or parking costs related to your treatment may also be reimbursed.
If you have permanent injuries that prevent you from participating in your previous recreational and leisure activities, you may be eligible for additional support benefits or expense reimbursement. ICBC's Advanced Support and Recovery Specialists will work with you and your medical team to help you access the necessary treatment, care, and support.
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Frequently asked questions
If you're found to be at fault for a crash, your ICBC Basic insurance will pay for your medical and rehabilitation expenses. If you have Collision coverage, it will pay for your vehicle repairs. Your insurance premiums will likely go up the next time you renew or purchase insurance, unless you have a long, claim-free record.
If you're not at fault for a crash, your own Basic Vehicle Damage coverage will cover the repairs to your vehicle. If you've been injured during the collision, you may be entitled to Enhanced Accident Benefits, which include compensation for lost wages, medical and rehabilitation treatments, and in some cases, compensation due to permanent impairment.
ICBC carefully reviews the details of every crash to determine who is responsible and to what degree. This assessment may affect your future insurance premiums. If you're found to be at least 25% at fault for an auto accident, your premium may increase.
Your crash history is a key indicator of driver risk. The more crashes you cause, the more you will pay in insurance. ICBC uses a claim-rated scale (CRS) to define surcharges and discounts that can increase or reduce the amount you pay for coverage. For each year without a claim, you move down a level on the CRS, receiving a discount. When you have an accident where you are at fault, you move up a certain number of steps, resulting in a surcharge.
