The no-fault auto insurance system has decreased average ICBC insurance costs in the province, and rates have remained frozen since its introduction in 2021.
B.C. Conservative Leader John Rustad says he will end ICBC’s monopoly and allow private auto insurers into this province.
“After years of mismanagement, British Columbians are stuck with a broken system. On top of that, David Eby and the NDP have stripped away the rights of accident victims to fight for the support they need to rebuild their lives. That’s not just wrong, it’s cruel,” he says.
Rustad said his measures would drive down costs and improve services.
B.C. NDP Leader David Eby wasted little time in attacking Rustad’s plan.
Claim
“Rustad’s plan pads the pockets of private insurance companies and expensive lawyers. Bringing costly lawyers back into the process would force people to battle in court and increase rates by $500 a year or more. That’s a risk people can’t afford,” said Eby.
What we found
There is no way to say how much insurance would increase by adding private insurers and altering the no-fault system, but there is evidence to support what Eby says.
In fact, Rustad acknowledges the benefit of no-fault, saying to maintain the “significant” savings currently in place with ICBC, there will continue to be a monetary cap for pain and suffering due to “minor injuries.”
Ernst & Young found that for 30 different driver profiles across nine provinces, auto insurance in provinces with publicly owned models with some form of no-fault insurance have lower rates than in provinces with private insurance models. It didn’t compare different levels of services.
Further consideration
Alberta, which has a United Conservative government, has been examining how to drive down vehicle insurance costs for drivers for several years.
The government is considering moving to some form of no-fault insurance.
It also estimated that a move to a public insurance model would cut premiums an average of $732 a year.