Auto insurance rates in BC are among the lowest in Canada, according to a new report commissioned by the Insurance Corporation of British Columbia (ICBC), with BC drivers paying less compared to those in other areas.
The report, which was conducted by Ernst & Young (EY) along with the support of Manitoba Public Insurance (MPI) and Saskatchewan Government Insurance (SGI), determined how much drivers would have to pay examined 30 different driver profiles to compare how much they would have to pay in nine different provinces across Canada. The analysis considered drivers’ age, gender, marital and employment status, as well as the distance of their commute and the year, make and model of their vehicle. It also took into account the drivers’ history of auto insurance claims and automobile convictions.
Auto insurance for an 18-year-old novice license holder driving a 2012 Honda Civic LX, for example, would cost $2,551 in BC and $1,129 in Saskatchewan. The same driver would have to pay $5,936 in Alberta and $5,199 in Ontario.
In another instance, a 30-year-old woman with 14 years driving experience, a recent at-fault crash and a 2019 Ford F350 would have to pay $2,065 in BC and $1,435 in Manitoba. By comparison, her auto insurance in Nova Scotia and Ontario would be at $3,657 and $3,501 respectively.
What these figures suggest is that drivers in provinces with publicly owned care-based models pay less for auto insurance than in provinces that have private insurance models, ICBC said in a release, adding that its Enhance Care model has saved customers an average of about $490 or 28% on full coverage personal insurance when renewing for the first time.
“Government and ICBC listened to British Columbians when they told us auto insurance was not affordable, so we took action by introducing the Enhanced Care model,” said ICBC president and CEO Nicolas Jimenez. “BC now has some of the most affordable auto insurance in Canada while also providing anyone injured in a crash with significantly improved care and recovery benefits when compared with the old model.”
ICBC’s Enhanced Care model launched in May 2021 and has struggled with criticism from different industry players, with the Insurance Business Council (IBC) recently publishing a report that suggested it did more harm than good due to a “dramatic reduction” in recovery benefits.
“This reduction in care and recovery benefits illustrates the painful truth about ICBC's no-fault model, and those injured are suffering the consequences,” said IBC Pacific and Western vice president Aaron Sutherland last month. “Now, more than ever, drivers need a choice to ensure they are receiving the best insurance at the best price possible.”
