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VANCOUVER, Jan. 31, 2018 /CNW/ - BC drivers pay the highest auto insurance premiums in Canada, yet receive less than drivers in other provinces when they make a claim. Reforming ICBC and bringing competition to the market would save drivers money and make auto insurance in BC more affordable. British Columbians deserve to be able to choose the auto insurance provider that best meets their coverage needs at the best possible price.
A new report shows that BC drivers could see significant savings if ICBC's monopoly were ended and the market opened to competition. Safe drivers could save as much as 18% on their basic auto insurance, and all drivers could save hundreds more. Click to see the full report, The Benefits of Competition in the Provision of Automobile Insurance in BC.
Under the government monopoly, ICBC's basic insurance rates have increased over 42% since 2011. The average BC driver now pays $1,680 every year for their auto insurance – more than any other province in Canada.
What's more, BC drivers actually receive lower claim settlements than drivers insured by private insurance companies.
Now, more than ever, it is time for change… and choice.
In a recent poll, 78% of British Columbians say they want more choice in auto insurance. They've run out of patience with the province's auto insurance system and want more choice. BC drivers deserve to be able to shop around and decide what auto insurance company best meets their coverage needs at the best price.
Competition provides a powerful incentive for any company to keep prices down and to deliver the best customer service possible. Auto insurance is no exception to this rule, and allowing private insurers the chance to compete with ICBC is in the best interest of BC drivers.
Competition alone cannot solve all of the challenges facing BCs auto insurance system but it is a critical part of the solution. Increased choice in the marketplace is the most effective way to deliver better costs to consumers and the experience that Canada's private insurance companies have gain in other provinces can help identify solutions to improve affordability in auto insurance in BC.
SOURCE Insurance Bureau of Canada
For further information: Andrew McGrath, Manager, Media Relations, 416-362-2031 ext. 4312, [email protected]