Posts Tagged ‘Auto Insurance Comparisons’

Are insurance rates soaring across BC?

Written by Harold McNeill on January 29th, 2018. Posted in Editorials, Tim Hortons Morning Posts


Car Crash

Scenes like this are all too common in BC and take a tragic toll in lives lost and families destroyed. The cost is high and we all pay but are Insurance Rates out of control in B.C.? Check out this article, as you may be surprised to see where British Columbia sits in relation to other Provinces.

This article is brought forward following an article in the Saanich News stating ICBC rates for some classes of vehicle are grossly inflated as compared to Alberta.

Update: August 20, 2019.

A further article debunks the statement that ICBC rates are soaring and that they are among the highest in Canada:  BC News Outlets Exaggerated the Costs of ICBC Insurance

Update: August 13, 2019.

A Global News broadcast this afternoon quoted heavily from an article prepared by the Insurance Bureau of Canada, an Ontario based private enterprise organization which promotes private insurance, which states BC has the highest auto insurance rates in Canada and that rates could be lowered through ‘competition’.  There was also an article in the Saanich News which similarily quoted the IBC information and also indicated ICBC is facing a huge deficit. The article made no mention of the considerable sums of money the government has removed from Crown Corporations such as ICBC and BC Hydro.

I just re-read the article the original article (below) and was again astounded at how high Ontario is compared to the rest of Canada. While that province has a population density far greater than BC, it is also a province in which auto insurance is managed entirely by private enterprise system.
 
No wonder the Insurance Bureau of Canada, has made such a finding, as one might suspect they are acting on behalf of the private insurers in Ontario, Alberta, and other areas, and might prefer to destroy the public-private system as it tends to expose the excesses of system base solely on private enterprise.
If we had the proper means of checks and balances in our system, the Ontario and Alberta private system might now be under investigation for fraud. I think it unconscionable to first make insurance mandatory and then to then allow private enterprise to charge exorbitant rates, particularly as they do in Ontario.

I have reached out to friends in the Auto Insurance industry to have them fact check the calculations I quote in order to insure they have legitimacy.  (Updated August 14, 2019)

Original Article:  (January 29, 2018)

The Apocalypse Now Narrative

While I do not subscribe to a “fake news” narrative, it seems newspaper reporters often pick the worse possible narrative and treat that as if it was the only fact.  That is what is now happening with respect to insurance rates in BC where private providers have been fighting the public system, ICBC, for years.

One headline reads, “Drivers facing rate hike as ICBC deficit is expected to hit $1.3 billion” (Vancouver Sun headline, January 29). Other BC News outlets carry a similar doom and gloom narrative about looming debt and rate increases. (note this link became broken for some reason).

I do not argue ICBC faces a deficit, for reasons noted below, but would it surprise you British Columbia, Saskatchewan, and Manitoba (the three provinces with public auto insurance) are among those with the lowest rates in Canada? Who has the highest? Alberta and Ontario. Alberta is about $1100 per year higher than BC and Ontario, at $5,500 per year, about three times higher.  Now to the ICBC debt.

Over the last several years, the provincial government (under the Liberals aka Conservatives) transferred millions from the Corporation into general revenue. It was one means of making the corporation look bad while helping the Liberals to try and balance the books. Following are just two of news reports which soundly criticize the practice.  In effect, the Conservatives have constantly placed the Corporation in lose-lose position vis a vis their customers.  Now the rate comparisons among the Provinces.

Times Colonist (August 2016)
Global National (August 2016)

Some years back the BC government attempted to raid the BC Pension Corporation of a multibillion-dollar fund in the same manner, but an uprising among pensioners and other interested parties help to thwart that attack. By having all that money transferred to an ‘unfunded liability’ of the government you can only imagine the disaster that would have become.  Today, those reserve pension funds are among the largest in Canada and growing hourly.

Now to the ICBC situation.

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Comments

  • McNeill Life Stories How to Game an Election - McNeill Life Stories

    September 18, 2019 |

    […] The Federal Conservatives and Seymour Riding Association complied but one day later those memes will be shared by every third party social media site and by thousands of supporters where the message will be taken as a statements of the fact.  Five years from now those memes will still be circulating. (Link here to background on the SNC Lavalin matter) […]

  • Harold McNeill

    August 21, 2019 |

    For those who followed the earlier post about the cost of ICBC Auto insurance coverage in British Columbia, Saskatchewan and Manitoba (linked in comments) here is another follow-up article.

    This article again confirms earlier assertions that public-private insurers such as that which ICBC provides, is among the best in Canada in terms of rates and coverage. A link is provided in the original story.

  • Harold McNeill

    August 16, 2019 |

    Many thanks for reviewing the article Elizabeth. There are so many areas of our society in which populism carries the day, although I think what is happening with the ICBC is that groups having a vested interest in private insurance would dearly love to dislodge ICBC from their preferred position. That being said, I think was a good move to have only portions of the insurance coverage in BC being held by ICBC and other portions being made available through private enterprise.

  • Elizabeth Mary McInnes, CAIB

    August 15, 2019 |

    It’s a breath of fresh air to see a resident of British Columbia look to review all the facts over believing what is reported in the news or just following along with the negative stigma of the masses. Your article truly showcases that with a little reform to ICBC’s provincial system – British Columbia could be a true leader for other provinces in Canada. Very well written article!

  • Harold McNeill

    August 13, 2019 |

    August 13, 2019. The Insurance Bureau of Canada (IBC), a private enterprise group not unlike the Fraser Institute, is again on the campaign trail. They state ICBC rates are the highest in Canada, but, thankfully, Global BC inserted a section indicating the Insurance Bureau cherry-picked the highest number in BC and the lowest numbers in AB, ON and other Eastern Provinces. If you take a few minutes to check reliable sources you will find BC rates, are the lowest in Canada.

  • Andrew Dunn

    May 14, 2019 |

    Thank you so much for all your help thus far Harold, aka. Tractor guy! I could not have done without you!

  • Harold McNeill

    April 25, 2019 |

    I find it interesting to contemplate how a small community evolves in general isolation from the rest of the world. We have a similar situation in the northern communities in Canada to which access is limited. The inclusion of the world wide web and mass media has changed things, but these communities are still left pretty much to their own devices when it comes to personal interaction.

  • Harold McNeill

    March 19, 2019 |

    Hi Dave. Not that I am aware and I have a fairly comprehensive family tree for the McNeill side of the family. I will pull it up and scan. Cheers, Harold. Great chatting with you and I will give Ben a nudge.

  • Dave Cassels

    March 16, 2019 |

    Were you related to Guy McNeill who owned the Bruin Inn in St. Albert in the late 40’s or early 50’s? Guy was a close friend of my father-in-law who was the first President of the Royal Glenora Club. My phone number is 780 940 1175. Thank you.

  • Harold McNeill

    March 15, 2019 |

    So glad you found the story and enjoyed. Indeed, they were memorable times. I did a fair amount of searching but never managed to contact any of the Murffit kids. However, it was neat to make contact with the Colony and someone I knew from back in the day. I have enjoyed writing these stories from back in the 1940s and 50s and have made contact with a lot of friends from those early years. I will give you a call over the weekend. Cheers, Harold