Keep the high-end ICBC clients


Tuesday, November 29 2016

This past week the BC Government made the announcement that any owners of vehicles worth more than $150,000 will have to purchase private insurance rather than going through ICBC.

The logic being that by taking the replacement cost of those vehicles out of the equation for ICBC, insurance would be kept lower for everyone else.

Problems - those vehicles make up a very tiny proportion of the vehicles in BC. End of the day, according to Transportation Minister Todd Stone, it will only save ICBC $2.3 million.

And if the vehicle has collector plates (is over 25 years of age) the new rules don’t apply. As long as someone has a ‘regular’ car insured through ICBC, any vehicle over 25 years old can get collector plates. So ICBC clients are still on the hook for replacing any collector Ferraris out there.

But the real problem, is this new ‘luxury’ rule came out just as the BC Liberals were under fire for the fact basic ICBC rates could see an increase of 42% compounded over the next five years.

If Stone and the Liberals were serious about trying to help ‘the little guy’ save on ICBC, they wouldn’t be kicking the wealthiest paying customers out.

They’d be increasing the cost of ICBC coverage for those luxury vehicles. 

They’d also be completely rehashing how the Liberals milk ICBC profits and Medical Services Plan payments to pay for something other than insurance and health care.