Private Car Insurance:
Does competition in car insurance mean lower rates and better coverage for you?
Competition and choice in car insurance might sound good, but does it mean better rates and coverage for BC drivers? Looking at provinces with private car insurance, the answer is no.
Even in major markets, like Ontario or Alberta, only a small handful of multinational insurance companies dominate – continually increasing rates and eroding benefits.
Private insurance lobbyists continue to lobby governments to cut benefits provided under basic insurance coverage under the guise of giving people "choice." Think of it like buying a car but having to pay extra for headlights!
So when we think about competition, we should instead be asking, how do we fix public car insurance in BC so we can have lower rates and better coverage?
Private car insurance discriminates based on age, gender and marital status
Discriminating on those factors is one of the ways private insurance companies make such big profits. But it can mean a big hit for drivers. One comparison found a young male driver in Ontario would pay $240 more per year than a woman his age with the same driving record.
In BC, your premiums don’t depend on your age, gender or marital status. And if you’re a good driver with a good record, you pay less — period.
Private car insurance costs more
The insurance companies know it, too. One study published by a private insurance company showed the average premium for drivers in provinces with private-only insurance is seven per cent higher than in provinces with public insurance. And in Ontario, with the most private insurance customers in Canada, it’s 76 per cent higher!
Private car insurance takes money out of BC… and out of Canada
With publicly-owned car insurance like ICBC, your premium dollar stays in our province, creating jobs and helping improve road and highway safety. But with giant private insurance companies, that money flows out of the province — and often out of Canada, into head offices in the U.S. and Europe.
Brought to you by front-line workers in public auto insurance in British Columbia, represented by MoveUP, the Movement of United Professionals.