Expensive ICBC Rates

[casper]

Originally Posted by Trainguy

10 years ago I was paying less optional insurance on my vehicle than I do now and it is 10 years older. Something is messed up. The NDP need to do a complete overhaul of ICBC or open the market up to full private insurance.

When I moved front SK to BC my rates went up by about 40% Same car in both provinces. I think the problem is internal to ICBC. Either the government fixed ICBC top down or let's the free market in. Etier option works.

[whatnext]

I thought they had already announced cars over $150k were being kicked off ICBC and had to get private insurance? And can’t you already finance your insurance

[SFUVancouver]

I was pleased to have my rate go down when I moved from Metro Vancouver (Richmond) to Kelowna; from about $190/month to $165. I used the savings to add "new vehicle replacement plus" to my policy and will still come out a few bucks ahead each month for the next couple years that I am eligible for that optional coverage.

Of course, I'm not looking forward to the ICBC rates going up and I definitely think that a review of the Provincial Government's policy towards ICBC is long overdue. As the sole shareholder, I don't have an issue with the Province receiving dividends in years when ICBC is in the black, but I do have a huge issue with ICBC raising rates to ensure that it is capable of covering its costs and making itself whole after being raided by the Provincial Treasury. I think that some shared benefit model would be appropriate, too, where some of the ICBC surplus would be returned to good drivers through an annual rebate.

I wholeheartedly endorse a range of technology-enabled policies, such as a return of photo radar and wide-spread use, comprehensive mobility pricing, distance- and route-based insurance, semi-decadal road testing to renew one's license, and an evidence-based plan towards integrating semi- and fully-autonomous vehicles on the road and into the ICBC insurance regime. I could easily see one receiving a substantial discount on their distance- and route-based insurance when on the highway in full-autonomous mode, for example.

[casper]

When I go in to renew my insurance, the insurance broker (credit union) asks if I want the option insurance with ICBC or third party. I usually ask what the difference is. They say, ok, press some keys on the keyboard and give me two prices.

In years past, ICBC was also the same or slightly cheaper. Last two years, it is been the other way around. Obviously I did third party. Is ICBC pricing themselves out of the market with the optional coverage, or is this just an anomaly.

When I lived in Saskatchewan, SGI was the provincial auto plan provider. However in addition to Auto, they also offer home insurance and probably some other insurance products. They also operate in other provinces. I believe their Ontario subsidiary is called Coachman Insurance.

Would it make sense for ICBC to follow the same model and offer other insurance products in other provinces. I believe the SGI argument for doing this is it helps spread risk across different geographies and product offering. Likely a bigger issue if your doing auto-insurance where weather plays a factor in claims from one year to the other.