Unregistered driver penalties have been issued to 444 Insurance Corp. of B.C. customers since they were imposed last fall, and they are being dinged at an average of almost $3,000 each for failing to declare a driver who causes an accident.
Changing the risk assessment of vehicle insurance rates took effect in September 2019, shifting the cost from vehicles to individual drivers. That includes a declaration of household members, employees and others who use the insured owner’s vehicle 12 or more days in a calendar year. When that’s not disclosed, an accident triggers an additional charge on top of the deductible and premium impact of a crash claim.
This one-time “financial charge” is not a fine, ICBC clarifies in a statement July 9. ICBC calls it the UDAP, or Unlisted Driver Accident Premium. Its rate varies depending how bad the undeclared driver’s accident record is, and can go as high as $5,000 added to basic insurance, plus twice the optional insurance premium.
ICBC gives an actual example of how the UDAP is much more costly than what insurance would cost a bad driver:
Description: Married couple, in their 50’s, living together in Metro Vancouver. One person has no crashes, and the other has caused three at-fault crashes in 2018. The one who has caused three previous crashes isn’t listed on the policy but drives the car anyway and causes a crash this year.
What they paid for their insurance: $2,800/year
What they should have paid if both people were listed properly: $3,900/year, a difference of $1,100/year.
Unlisted Driver Accident Premium (UDAP):
Optional portion waived by ICBC: $3,140
Adjusted total: $5,000