IBC Statement on the Future of Auto Insurance in British Columbia
October 8, 2020
VANCOUVER, BC, Oct. 6, 2020 /CNW/ – Today, Aaron Sutherland, Vice-President Pacific, Insurance Bureau of Canada (IBC), issued the following statement:
Today, the BC Liberal Party announced that if elected to form the next government, they will open the province’s vehicle damage market to full competition. This would make British Columbia’s no-fault system – set to come into force in May 2021 – remarkably similar to that of Quebec, a province where injury coverages are provided by the government insurer and vehicle damage coverages are provided by private insurers. Under the Quebec hybrid model, drivers pay an average of $717 for auto insurance – the lowest in Canada – and can shop around to find the best coverage at the best price. That is less than half the $1,500 average premium ICBC projects under its no-fault insurance system.
Under ICBC’s monopoly, BC drivers pay more for car insurance than any other jurisdiction in Canada – be it a public or a privately run system. Canada’s private insurers want to help lower premiums in BC and are committed to working with any government to create a system that works for everyone. Competition is a powerful incentive for any company to deliver the best product at the best possible price. Auto insurance is no exception to this rule.
About Insurance Bureau of Canada Insurance Bureau of Canada (IBC) is the national industry association representing Canada’s private home, auto and business insurers. Its member companies make up 90% of the property and casualty (P&C) insurance market in Canada. For more than 50 years, IBC has worked with governments across the country to help make affordable home, auto and business insurance available for all Canadians. IBC supports the vision of consumers and governments trusting, valuing and supporting the private P&C insurance industry. It champions key issues and helps educate consumers on how best to protect their homes, cars, businesses and properties.