In the last four years, the Insurance Bureau of Canada has tried its best to convince British Columbians that the for-profit private auto insurance system would be a better bet when compared to the ICBC. However, that argument is far from the truth as there is overwhelming evidence to support the fact that when the government agencies do it right, then this choice between private and public insurance is really a no-brainer. Lindsay Olsan argued on behalf of Insurance Bureau of Canada, that there would actually be a dip in the auto insurance rates in BC. It is a well-known fact that Insurance Bureau of Canada protects private interests. But when you look at research conducted by some of the independent organizations that have taken a neutral stand, there is clear evidence that the IBC’s numbers simply don’t add up. Consumers’ Association of Canada has conducted studies to look into the various aspects of auto insurance rates. They have carried out these studies using the same vehicle and the same driver with the same driving record to see how the rates vary across the nation.
In each and every case, BC and the rest of the provinces that have the public insurance system are way ahead when compared to those with private insurance. For instance, CAC studies have shown that rates in the Maritimes could even go up by more than 45% than Saskatchewan, Manitoba, and in BC. In Ontario, the average rates were more than twice of what we pay. Although the IBC will want you to believe that the rates would go down due to the competition as the private insurance sector is strong, this is not true. Ultimately, these corporations are answerable to shareholders and not the British Columbians. Due to this patchwork in the private insurance system that is because of the inefficiencies, the insurance rates under this system will certainly be much higher than the ones that are under the ICBC.
It is certainly true that some of the drivers may get cheaper auto insurance rates in a place like Alberta. But those are rare instances as the driver is deemed as low-risk by these private insurance companies. The coverage that is offered is also much inferior when compared to the ICBC’s basic coverage that has set low caps for some of the benefits. The maximum benefit at Alberta is literally one-third of the basic package that ICBC offers. In a catastrophic accident, this can make all the difference.
Rep. Jim Boyd, R-Bradenton has announced the introduction of the new legislation under House Bill 1411. Now there would be several important measures that would be taken by the lawmakers in Florida to fight the menace of auto insurance scams. There would be increased consumer protection, stiffer penalties, and revisions to car crash reports.
When applying for car insurance, one of the most important questions you’ll receive from the company is, “Have you had a violation in the past # of years?” For some companies, it may be five years and for others three, but no matter what, if you check “yes” next to that question, you are probably biting your nails in anticipation of what your car insurance quote will be.
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