Liberals announce plan for more private auto insurance; NDP slams it

B.C. Liberal leader Andrew Wilkinson has announced his party will end the ICBC monopoly by opening up the automobile insurance market to competition from the private market.

Wilkinson said that will allow drivers to shop for the best possible rate, along with lower premiums for young drivers to give them a break at a time in life when they need it the most.

“B.C. drivers are tired of being gouged by John Horgan and the NDP,” Wilkinson said. “The ICBC monopoly is a failure and it’s time to offer drivers cheaper rates – that’s what competition will do and that’s what the B.C. Liberals will deliver.”

Wilkinson said young drivers are being ‘ripped-off’ by John Horgan and the NDP government.

“When I hear stories of young people with clean driving records stuck with bills of over $5,000 it’s clear the system is failing and needs to be fixed,” Wilkinson said. “Young people face enough pressure these days, so the B.C. Liberals will make sure they have affordable auto insurance.”

You asked for a choice for your car insurance, ending the ICBC monopoly. A BC Liberal government will make that happen. #ICBC #insurance #choice #bcliberals #BCElection2020 #bcpoli pic.twitter.com/G7czhaHz11

— Greg Kyllo Shuswap (@KylloGreg) October 6, 2020

The NDP said Wilkinson’s plan to cancel the BC NDP’s Enhanced Care model and keep sky-high legal costs in the system would cost drivers hundreds more each year – for both public and private car insurance.

“Evidence from Ontario, Alberta, the former B.C. Liberal government, and private insurers themselves shows that private insurance costs more and makes it harder for many drivers to get coverage,” stated an NDP news release.

The NDP added Wilkinson would cancel the single most important measure: cutting down on the astronomical legal costs that are driving up insurance rates for everyone.

“The B.C. NDP’s Enhanced Care model cuts down on hundreds of millions every year in legal costs, allowing ICBC to improve care for people and reduce car insurance by 20 per cent starting May 1, 2021. That’s an average savings of $400 a year,” the release said.

The Canadian Taxpayers Federation is applauding the pledge by the B.C. Liberals to open ICBC up to competition.

“It’s great to see a major party finally agree to stop the ICBC monopoly and open it up to competition,” said Kris Sims, B.C. Director of the Canadian Taxpayers Federation. “B.C. drivers pay the highest auto insurance rates in Canada and it’s unfair to deny them a chance to shop around to save money.

“All parties need to commit to opening ICBC up to competition.”

Sims said drivers in B.C. currently have no way of avoiding ICBC and they often pay hundreds of dollars more year for their insurance than drivers do in Alberta.

“Being stuck with the ICBC monopoly is like having one government-run grocery store chain in the whole province where you can’t price match or shop for sales,” said Sims. “Monopolies encourage prices to go up while quality goes down.”