B.C.: The highest public car insurance rates in Canada!

[John500]

Dont forget in your discussions that the BC Government uses ICBC by transferring massive profits to the government general accounts. 770million plus another amount of 500 million. Same was done in Manitoba but there someone got clever and took the government to court resulting in being told "big no no" and a refund to every insurer of about $400. In BC we are brainwashed to think ICBC is the end all of insurance and no government is willing to allow them to compete.

[my5cents]

Dont forget in your discussions that the BC Government uses ICBC by transferring massive profits to the government general accounts. 770million plus another amount of 500 million. Same was done in Manitoba but there someone got clever and took the government to court resulting in being told "big no no" and a refund to every insurer of about $400. In BC we are brainwashed to think ICBC is the end all of insurance and no government is willing to allow them to compete.

I agree with you that any transfer to the government's general revenue is wrong wrong wrong.

ICBC's mandate has always been to be "not for profit". They are always sliding the government 1/2 or 3/4 of a billion.

My understanding is that the basic liability (the first $200,000) isn't profitable, and would be even less so if it was open to full competition.

That supposition is born out, when you see jurisdictions like Quebec opting for Pure No-Fault.

I would love to hear the real nuts and bolts about that from someone in the know.

As far as all the rest (additional liability coverage over $200,000, own damage, and extra coverage such as road service etc etc) since it is wide open to competition, and ICBC is so "over priced" why aren't the private companies taking all ICBC's competitive business away ?

The private insurance companies prices are about the same as ICBC's.

We also have to consider that ICBC is selling own damage insurance to everybody and is insuring any vehicle. The private companies are "creaming". In the competitive market the private companies don't sell to high risk drivers and don't sell coverage for high risk vehicles.

Shouldn't their rates be extremely low compared to ICBC ?

I do know that ICBC is prohibited by law from subsidizing one area of insurance with the other. ie, ICBC can't jack up the price of the basic liability insurance so they can cut the cost to the consumer for the optional coverage.

[French Castanut]

I don't understand icbc system quite yet...

But in QC, the reason your insurance rate will increase if you claim, even if you're not liable, is because of the no fault system.
Because each insurance company pays for his own customer damage and can't sue the faultive driver's one, if you claim, your insurance company loses money by paying you benefits. It's why they're gonna increase your rate when you renew your contract.

[my5cents]

I don't understand icbc system quite yet...

But in QC, the reason your insurance rate will increase if you claim, even if you're not liable, is because of the no fault system.
Because each insurance company pays for his own customer damage and can't sue the faultive driver's one, if you claim, your insurance company loses money by paying you benefits. It's why they're gonna increase your rate when you renew your contract.

In BC there is more risk for the insurance company because the victim of the negligence (the one, not at fault) is open to get more than just his property replaced or fixed and his medical bills and wage loss, he/she can get money for pain and suffering and for future problems that might occur.

If I'm stopped at a red light and a negligent driver piles into me, it isn't right that my insurance should pay for my damages and injuries and thus raise my rates, that is just not right.

The ICBC coverage is quite simple. If someone hits you and is at fault, their liability coverage pays for your lost or damaged property and any settlement for pain and suffering and any shortfall in wage loss that your No-Fault coverage wouldn't pay for. Your own No-Fault coverage pays your medical bills and basic wage loss. Your No-Fault coverage is exempt from rate increases because of claims.

If you are at fault for an accident and lets say only damage your own car, your No-Fault coverage would pay for your medical and basic wage loss and you own damage coverage would pay for your damaged car. Because you used your own damage coverage, your insurance rates may go up depending on you claims history (they do forgive claims depending on your claims history).