Capping injury pay-outs won’t extinguish the ICBC dumpster fire

VANCOUVER, BC: The Canadian Taxpayers Federation (CTF) is urging the BC government to make bigger changes to the Insurance Corporation of British Columbia (ICBC) that would actually save BC drivers money.

"These changes don't cut the sky-high rates that we are forced to pay today. We need a pumper truck for this ‘dumpster fire,’ not a squirt gun," said Kris Sims, BC Director of the Canadian Taxpayers Federation. “BC drivers pay the highest auto insurance rates in all of Canada and today's announcement is little comfort to drivers. We need fundamental changes to ICBC and it needs to be opened up to competition. BC drivers need a choice and they need to be able to shop around to save money.”

While some insurance experts say that the accident management system was overdue for a change in BC and dampening future court costs on injury claims could save money down the road, the changes don’t reduce the current high rates that are caused by a government-forced monopoly on auto insurance.

The average cost of auto insurance in BC is more than $1,700 per year, higher than all other provinces.

The CTF is recommending that ICBC be changed into a co-op, similar to a credit union, and then opened up to competition. BC has a long culture and history of co-ops and changing ICBC into one would put BC drivers back in control of their money and keep politicians from raiding the beleaguered crown corporation whenever they want fast cash.

"Drivers in other provinces get to shop around for lower rates, and it's time that BC drivers get the same choice," added Sims.

To read the full CTF report on the problems plaguing ICBC, and the recommendation to change the 1970s era government monopoly into a driver-owned co-op, click HERE.

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