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ICBC and vehicle insurance

Policy Primer

Written By Northern Beat Staff
Published

Nailing down policy platforms in the midst of an election is an elusive endeavour as parties develop existing policies and announce new promises (sometimes on the fly) every day. We’ll do our best to post significant changes as new information becomes available.

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BC NDP on ICBC

BC NDP made significant changes to auto insurance in 2021, significantly reducing premiums for drivers.

  1. Creation of ICBC in 1973: The Insurance Corporation of British Columbia (ICBC) was established as a public auto insurance provider, giving the government a monopoly on basic auto insurance coverage.
  2. Introduction of Enhanced Care Coverage in 2021: This new model implemented several major changes:
  • A move to a no-fault insurance system
  • Increased care and recovery benefits (up to $7.5 million, up from $300,000)
  • Average 20% reduction in premiums for drivers
  • Elimination of most lawsuits for crashes
  1. Basic Vehicle Damage Coverage: Introduced in 2021, this provides first-party coverage for vehicle damage when the driver is not at fault, up to $200,000.
  2. Changes to how premiums are calculated: Starting in 2019, driving experience and crash history began to have a bigger impact on premiums. Drivers are now required to list all individuals who drive their vehicle.
  3. Removal of hit-and-run coverage from basic insurance: As of 2021, coverage for vehicle damage from hit-and-runs is only available through optional coverage, not basic insurance.
  4. Increased accountability measures: Legislation in 2020 eliminated the government’s ability to take funds from ICBC’s excess capital.
  5. Introduction of optional coverage from private insurers: While basic coverage remained with ICBC, optional additional coverage was opened up to private insurers as well.

These changes represent a significant evolution in BC’s auto insurance system, moving from a fully public model to a hybrid system with more emphasis on no-fault coverage and increased benefits for injured drivers.

Citations:
[1] https://jmins.com/the-12-most-notable-changes-from-icbcs-new-enhanced-care-coverage/
[2] https://www.canadadrives.ca/blog/car-finance/car-insurance-in-british-columbia
[3] https://www.bcndp.ca/latest/bcs-long-struggle-better-more-affordable-car-insurance
[4] https://acera.ca/icbc-changes-how-car-insurance-premiums-will-be-calculated/
[5] https://news.gov.bc.ca/releases/2020AG0018-000372
[6] https://www.bcaa.com/blog/insurance/a-new-era-of-car-insurance-in-bc
[7] https://assets.ctfassets.net/ways6qm8tbfw/3e2htwweyqCR4qr292YAH4/33231377de234e8dacd9a3603f8af40c/overview-key-changes-auto-insurance-june2021.pdf
[8] https://ojs.library.ubc.ca/index.php/bcstudies/article/download/182688/183969/187623

BC Conservative Statements on ICBC and auto insurance

Based on the search results, John Rustad, the leader of the Conservative Party of BC, has made several statements about car insurance in British Columbia:

  1. Rustad has proposed reforms to ICBC’s no-fault insurance model called Enhanced Care, which has been in effect since May 1, 2021[1][2].
  2. He acknowledged that the previous system had driven up costs, but argued that reforms are necessary for catastrophic injuries[1][2].
  3. Rustad stated, “No-fault (insurance) is something that needs to be in place for soft-tissue injuries… However, when you have a serious injury, a life-altering injury, you should be able to fight for what you need. You shouldn’t just be accepting from a Crown corporation when they say, ‘this is what you get, because this is what our tables say.'”[1][2]
  4. He has vowed to alter the no-fault insurance system if elected as BC’s next premier[5].
  5. Rustad’s proposed policy would exempt victims who suffer life-altering injuries in motor vehicle accidents from the no-fault insurance regime, allowing them to pursue fair and reasonable compensation in the British Columbia court system[6].
  6. He aims to maintain cost-saving measures for “minor injuries” or “soft tissue” injuries, but wants to amend the definition of “minor injury” to accord with medical consensus[6].
  7. Rustad believes this policy will help allow for competition in BC’s vehicle insurance market, stating that “The ICBC monopoly will never produce the cost savings a competitive free market will.”[6]

These statements indicate that Rustad is critical of the current no-fault insurance system, particularly for severe injuries, and is advocating for changes that would allow more legal recourse for seriously injured individuals while maintaining some cost-saving measures.

Citations:
[1] https://www.vicnews.com/news/conservative-party-of-bc-calls-for-reforms-to-icbcs-no-fault-insurance-7283175
[2] https://www.thefreepress.ca/news/conservative-party-of-bc-calls-for-reforms-to-icbcs-no-fault-insurance-7283175
[3] https://www.canadadrives.ca/blog/car-finance/car-insurance-in-british-columbia
[4] https://www.cbc.ca/news/canada/british-columbia/john-rustad-sonia-furstenau-ubcm-speeches-1.7329947
[5] https://globalnews.ca/news/10731578/icbc-no-fault-insurance-election/
[6] https://www.conservativebc.ca/announcement_no_fault_insurance_policy
[7] https://acera.ca/icbc-changes-how-car-insurance-premiums-will-be-calculated/
[8] https://www.bcaa.com/blog/insurance/a-new-era-of-car-insurance-in-bc

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