Emergency crews respond to two-vehicle accident on Highway 10 in Surrey, July 31, 2019. (Black Press Media)

B.C. vehicle insurance remains Canada’s costliest, industry group says

ICBC monopoly needs competition, Insurance Bureau of Canada argues

Independent statistics show B.C. drivers will continue to pay the highest average insurance rates in Canada, next year and into the future, the Insurance Bureau of Canada says.

The private industry group cites the latest numbers from the General Insurance Statistical Agency, an average of $1,832 per year. Alberta comes in at $1,316, Saskatchewan at $1,235 and Ontario at $1,505.

“While many important changes are underway in B.C., none are expected to reduce the price most drivers are paying,” said Aaron Sutherland, the bureau’s Pacific region vice president. “With ICBC stating that it will need price increases to raise over $1 billion in the years ahead, now more than ever, the market must be opened to competition and choice to improve the affordability of auto insurance for drivers.”

RELATED: Budget includes bailouts for ICBC, B.C. Hydro

RELATED: ICBC renewals get more complicated this year

The average is calculated by comparing the total premiums collected from passenger vehicles in each province, and dividing by the number of vehicles insured.

ICBC is calculating rates for next year based on a new system that shifts costs to the highest-risk drivers.

Caps on “pain and suffering” payouts and an administrative tribunal for minor injury claims were put into effect in April as accident and legal costs soared in B.C.

ICBC retains a monopoly on basic liability insurance and competes for optional coverage for collision, glass and other coverage. The Crown corporation also operates driver licensing in B.C. and funds police enforcement and safety improvement projects, costs ICBC says are reflected in higher rates.

The Insurance Bureau retained accounting firm MNP to compare B.C. and Alberta vehicle insurance, with this year’s ICBC changes in effect. Their study found that insurance coverage and payouts are similar in the two provinces, except for rates.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

Just Posted

Town experiments with protecting eroding brown bridge deck

Unusual wear and tear on the decking of Princeton’s brown bridge has… Continue reading

Word on the Street: Festivalgoers at the 27th annual Salmon Arm Roots and Blues

The Observer asked: Where are you from and what brought you to the festival?

New Penticton/Kelowna transit route ready to roll out

Route 70 Penticton/Kelowna will provide a direct trip to Kelowna from Penticton and Summerland

The Offspring and Sum41 ready to rock Penticton

The Offspring and Sum 41 will stop in Penticton to the South Okanagan Events Centre

Motorcyclist involved in Westside Road crash

Air ambulance assists while motorists face lengthy delays

VIDEO: Title of 25th Bond movie is ‘No Time to Die’

The film is set to be released in April 2020

Lane had excelled in science fairs

Summerland graduate became senior geologist

South Okanagan dangerous offender back in court

Administrative error has led to more court time being used up in Penticton

Denim on the Diamond festival returns to the Okanagan bigger and better

The end of summer festival returns to King Stadium in Kelowna Aug. 31

Alberta woman dies in motorcycle accident in Revelstoke

RCMP say an SUV turned left in front of the motorcycle

‘Unsubstantiated’ bomb threat against CP Rail in Revelstoke

On Aug. 18, a bomb threat was made against CP Rail in Revelstoke

Alberta man killed in Highway 97A collision south of Sicamous

Aug. 16 crash under investigation by the RCMP and BC Coroners Service

Victoria father charged with double murder of his daughters takes the stand

Andrew Berry pleaded not guilty to the December 2017 deaths

New ‘Matrix’ film set with Keanu Reeves and Lana Wachowski

Fourth installment to feature Reeves as Neo and Carrie-Anne Moss as Trinity

Most Read