The Insurance Corporation of British Columbia (ICBC) is overhauling how it calculates insurance premiums next month and there’s more to the algorithm than meets the eye.

A bigger chunk of the risk calculation — and, ultimately, the cost — is shifting to who’s behind the wheel and that can mean a difference of thousands of dollars for some drivers.

“Higher-risk drivers, people who are inexperienced and people who cause multiple crashes should be paying more for their insurance than everybody else,” said Joanna Linsangan, a media spokesperson with ICBC.

“That’s what this new algorithm is focused on and that’s what people are going to start seeing this September.”

The upcoming changes come after a series of changes in ICBC’s model, including a $5,500-cap on pain and suffering payouts for crash victims with minor injuries.

CBC News