Yeah, I know it is how it is. I do understand the fairness argument with ICBC but I suspect the average premium here is greater than the average premium where insurance is handled by the private sector.

Still, if I had my way the liquor control board would definitely be gone as that really doesn't seem to serve any purpose other than union placation. And why do liquor stores have tips jars.... grrr!

Commonsense polices for a commonsense British Columbia.

That's right...

It is a triumph for stupidity over common sense.

When I bought a new car car in the states, without any no claims as I'd only had a motorbike, my full comp coverage was $750 per year.

It's high time that hard working british columbians had a voice to enable that victory to happen.

I used to live in the same condo building as Gordon Campbell. Is he still around?
He lived on a much higher floor...

Stealth tax it is!

ICBC is actually a crown corporation and has a board of directors. the whole system is based on merit for good driving. It is a completely different system than the UK and those moving here having had competive rates in the UK will be in for a shock.

The higher rates are more to do with liability protection for the driver (north america is much more litigious that the UK). I always found it odd when I switched from a piece of crap Sunfire (worth a few grand) from about 900 a year to a 35 k Audi at around 1600 per year.

All those prohibitive groups they have in the UK based on your age and teh type of vehicle you drive are not factors here, the insurance is more evenly distributed, but the downside is that those at the bottom end see no benefits. I think it's a fairer system overall.

I don`t agree with that part at all. The "awarding points for risk factors" enables one to tailor one`s payments by not utilizing such risk factors (high powered vehicle, vehicle likely to be stolen, etc.)

I appreciate that that means that young drivers will be "punished" but to punish all for the choices of others doesn`t seem fair to me at all.

Doesnt explain why insurance rates in the even more litigous US are a fraction of canadian costs, especially when the added factor of US medical costs is also factored into the post accident costs.

Of course, its a smallish market which doesnt help.

Is it a stealth tax? No I dont think so, but then I dont know if it operates at a profit or not. Even if it does, any money it makes is money that isnt raised elswhere with other taxes anyway, so it makes no difference in my mind, it cost the government $Xm a year to run a province, and it will raise that money one way or another regardless.

ICBC also charge lower premiums to new drivers than they would otherwise get, subsidised by other drivers resulting in higher premiums to experienced drivers.

From my experience of ICBC, they are pretty useless when an incident occurs. Who gets the blame makes no difference to the adjusters, ICBC are paying out anyway. I would not be surprised if some did not get settled over coffee in the lunchroom!

depends which side of the coin you are on. I can afford a fancier car here but granted entry level vehicels are more. As someone already noted, there are plenty of good younger drivers who are penalized as they are lumped into the "under 25 they must be bad" category. Why should a bigger German car be more expensive to insure in the UK than a UK model? If i work nights why should i pay more than someone who works during the day? What about where you live? Park in a garage vs not in a garage. the uk model is all calculated around payouts and there are standard rates for losing a leg etc.

At the end of the day, when you look at all costs associated with motoring, such as road tax, insurance, MOT, fuel, etc, I doubt there's much in it.

Interesting article (extract) from The Tyee:


ICBC seems pretty typical of most insurance companies. But what about those low premiums paid by B.C. drivers? The answer is that ICBC has lower costs than private firms.

Since it enjoys a monopoly on 'basic' automobile insurance in B.C., the Crown corporation does not need to expend large sums on advertising to attract customers. And because it is owned by the B.C. government, ICBC pays neither federal nor provincial taxes (with the exception of insurance-premium taxes to Victoria).

With lower operating costs than private insurers, ICBC therefore has a lower 'operating loss,' and so can charge lower premiums. ICBC's low rates and profitability benefit countless British Columbians.

The average B.C. motorist, according to the Consumers' Association's study, pays $1,324 for insurance annually. That's $390 less than what Albertans pay and a whopping $1,059 less than Ontario drivers. B.C. businesses benefit in two ways: first, their employees' wage and salary demands are dampened by lower-than-market auto-insurance costs; and second, their own fleet insurance and transportation costs are lower than those faced by competitors in other provinces.

The provincial government also benefits from ICBC's profitability. First, because Victoria has adopted generally accepted accounting principles (GAAP), which includes Crown corporations in the province's bottom line, ICBC's retained-earnings reduce B.C.'s total debt. Second, the Crown corporation's annual operating profits help to boost provincial revenues, thereby contributing to a 'balanced' or surplus budget. And third, ICBC collects more than $400 million annually in fines and revenue for the province and operates 'Road Safety programs,' at no cost to Victoria! (The $100 million-plus annual cost of these activities is paid by ICBC.)

http://thetyee.ca/Views/2005/11/03/ICBCSuccess/

Cos they are much more expensive to repair after an accident innit?


Isnt everything insurance wise driven by statistics and actuarial input?