The Insurance Corporation of British Columbia’s (ICBC) claims that BC drivers pay the lowest insurance rates in Canada is inviting more scrutiny and criticism than praise, as the Insurance Bureau of Canada (IBC) steps in to offer its two cents on the issue.
ICBC recently published the results of a report which compared auto insurance rates around Canada. With Ernst & Young (EY) commissioned to conduct the report, it had concluded that not only did BC drivers pay the least – in general – for auto insurance, but provinces like Alberta were paying the most.
For instance, the study indicated that an 18-year-old driver with two years of experience, a clean driving record without prior claims, and a 2012 Honda Civic LX would have to pay $1,100 for insurance in Saskatchewan and $2,551 in BC but might end up paying $5,900 in Alberta.
The results were met with skepticism. The Insurance Brokers Association of Alberta (IBAA), in particular, had advised that while the report seemingly extols the virtues of public insurance, it presented misleading findings by not taking the lowest quotes possible and ignoring possible discounts, on top of not referring to a licensed insurance broker for more information.
And now the IBC has also responded to ICBC’s report, also questioning the insurer’s methodology for comparing quotes.
"It really isn't an apples-to-apples comparison," IBC Western and Pacific vice president Aaron Sutherland told CTV News.
Sutherland explained that he remains unconvinced of the report, as it was commissioned by ICBC, British Columbia’s sole provider of insurance.
"I don't expect monopolies to understand how people shop the market, but this is really a gross misrepresentation of the market in Alberta, of how people behave and how drivers are able to shop around to find savings to get the best product at the best possible price.”
It was also explained that Alberta allows private insurers to set competitive rates, while BC does not, and that Alberta has maintained an at-fault or tort system, which means one driver bears the burden for damage in a collision. In a no-fault system like in BC, everyone involved pays and there are no opportunities to sue for damages.
