Eby said ICBC's 30-year-old pricing model has "increasingly failed to make sure that drivers are held accountable" and accused the province's previous Liberal government of failing to take timelier action to make premiums fairer for British Columbians.
ICBC is submitting the changes to the BC Utility commission and if approved, they will benefit an estimated two-thirds of ICBC's customers, according to a press release.
Insurance premiums will also factor in where you live and the traffic density, population growth and changes in the urban infrastructure.
The B.C. government has directed ICBC to file an application with the BCUC by August 15, 2018.
Similarly, at-fault accidents will have a larger impact on a driver's premiums than they now do, but one at-fault crash will continue to be forgiven over a period of 10 years. "It's time for a complete re-work of the auto insurance framework in B.C., and the NDP is not delivering".
"We want to modernize ICBC so that British Columbians pay according to their crash history, driving records and level of risk, and take responsibility for their driving habits", said Eby.
At-fault crashes will have a larger impact on the premium a driver pays. In a statement sent out Thursday afternoon, the government said it received feedback from nearly 35,000 British Columbians.
17% of all drivers - more than $100 increase.
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He said: "We were under no illusions as to how hard it would be beforehand but we didn't deal with what they threw at us. From the opening exchanges, it was clear that this game was always going to one that had goals in it.
Most customers will fully transition to their new basic premium within three years under the proposed changes, the Ministry of Attorney General stated.
That sentiment was echoed by drivers on the streets of Vancouver Thursday as they learned about the incoming changes to ICBC's system.
More than 80 per cent of British Columbians agreed to that decision during ICBC's public consultations.
The province and ICBC have determined a new rate structure for B.C. drivers. It said 13 per cent of drivers would see a reduction between $50 and $100, and 15 per cent would see a reduction of more than $100.
The changes are revenue-neutral and not meant to put a dent in ICBC's forecasted $1.3 billion deficit - a situation Eby has called a "financial dumpster fire".
But the attorney general said the changes are "not about increasing revenues".
The government says the changes are revenue-neutral, while making insurance premiums more fair, and they will have no effect on the forecast $1.3-billion deficit faced by the Insurance Corporation of British Columbia.
The province has already announced changes that will increase the amount bad drivers with multiple penalties pay for yearly insurance, along with caps on the amount people can claim in pain and suffering for minor injuries.