OK, this news item will get folks going so let's address it...
https://www.castanet.net/edition/news-s ... htm#247978 "ICBC needs competition"......According to Aaron Sutherland, Pacific vice president of the Insurance Bureau of Canada...…
For starters, don't get fooled. We often think the word "Bureau" indicates some sort of government agency, "hey it's got to be trustworthy and official... it's a bureau !"
Well it's not. It's a lobbyist for the private insurance industry.
So, Aaron, let's tell some "truths" :
"We believe British Columbians should be able to shop around like they do in virtually every other aspect of their lives, to find the best product that at the best price that best suits their needs," Sutherland said. "We can't do that here in B.C. we can't do that."
As a result, British Columbians pay more for auto insurance than anywhere else in the country."So the reason we pay more is because we can't shop around ? We can't find the best product ? That suits our needs ?
We are talking about the first $200,000 Public Liability Coverage, right ? So what could be different if we "shopped around" ?
Has to be that amount - So nothing to shop for there
There is no deductible - So would you want to shop for a policy that had a deductible ? You hit someone and you have to pay the first thousand to them yourself ? Don't forget this coverage doesn't cover you, it covers everyone but you.
Part of your basic coverage is your No Fault Benefits. (don't confuse that with No Fault Tort) It covers you, even if the collision is your fault, you get medical, you get some wage loss, you get rehab, some death benefits. It also has the benefit of covering anyone in you household, if for example they are hurt in a collision that doesn't involve a BC vehicle. As a pedestrian, etc etc. I remember a kid was run down crossing the street in Seattle, stolen vehicle, took off etc. What to do, how is this going to be paid for, medical, rehab, transportation back. Simple... ICBC.
Do you want to save some money and drop No Fault ? All provinces have forms of it. If not for No Fault, the costs would fall on our health system, and our social services systems. So if we had private insurance take over and sell less coverage for No Fault, do we want those short falls to be picked up by our taxes ? Aren't we then subsidizing the private insurance industry with our own taxes ??
What good old Aaron hasn't told you is, is there is a reason our insurance has increased compared to other jurisdictions and it has NOTHING to do with competition. It's got to do with our courts and our BC laws. The other provinces have brought in caps and minimums for minor injury claims. Our "good old" Liberal government commissioned a study on auto insurance in BC. The study identified that we needed a threshold no fault system for tort claims, like the other provinces.
When the study was released, guess what ?? That section of the report was missing. ? What ? Yes we went merrily along, with the Liberals stealing cash from ICBC and allowing the plaintiff bar to keep sucking on the *bleep* of ICBC.
SEE: Vancouver Sun "Read the Report the Liberals didn't want you to see"
https://vancouversun.com/news/politics/ ... you-to-see If you break down your auto insurance, you have three basic parts.
Basic Coverage - The first $200 G liability, Hit and Run, No Fault, etc
Excess Liability - All liability coverage above $200 G, ICBC sells up to $5 million
Own Damage - Coverage on your own vehicle, collision, comprehensive, specified perils, etc
If you price out the Excess Liability and Own Damage, you will find some private to be cheaper and some more expensive, ICBC is certainly in the ball park.
We've all read about the court settlements for tort claims. Do you really think that ICBC is over charging on Basic Coverage because they have a monopoly and is competitive on the rest because of competition ?
Don't forget ICBC is competitive on the optional while being fleeced of, the Fraser Institute says $2.5 Billion.