Recent data from the
Insurance Bureau of Canada shows public auto insurance may not lead to lower prices, and competition between providers may be a logical alternative.
The IBC found Ontario has the most expensive auto insurance premium in the country followed by British Columbia and Alberta in second and third, respectively.
Steve Kee with the IBC says the average annual premium ranges from the lowest rate of $752 in Prince Edward Island to the highest rate of $1,456 in Ontario. As of last month the average premiums were:
| Province |
Premium |
| Ontario |
$1,456 |
| British Columbia |
$1,163 |
| Alberta |
$1,140 |
| Newfoundland |
$1,066 |
| Nova Scotia |
$763 |
| New Brunswick |
$759 |
| Prince Edward Island |
$752 |
British Columbia, Manitoba and Saskatchewan remain the only provinces in the country with government monopolies on auto insurance.
Kee believes there is an inherent benefit to having more than one insurer to choose from, “Many people believe that government-run monopolies lead to cheaper prices. It is not always the case. I believe competition is good for the market place. People may find that they are able to get better rates; maybe they bundle some of their insurance with their home and their auto policies to get discounts in that.”
It appears as if his claims may have some substance according to recent reports that the Insurance Corporation of British Columbia plans to raise basic auto insurance prices by $3 per month. ICBC is the only insurance provider in the province, allowing them free reign over rates.
"We certainly understand that nobody likes the news of a rate increase," spokesperson for ICBC Adam Grossman told CBC News. "But the fact is that the cost of injury claims in B.C. continues to grow every year.” (continued.)
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He went on to state, "The rising number and cost of injury claims is commonly the biggest single factor driving rates for all auto insurers across North America and beyond.”
Nevertheless, privatized competition would not only provide increased competition, but create jobs for brokers as well.
“The private market provides choice, provides opportunities for you to look at different rates,” explained Kee.
