ICBC Updates Legislation on Luxury Vehicles
Government of British Columbia has now passed legislation that will ensure the average ratepaying citizen of the province will no longer be subsidizing fixes and claims on expensive, luxury vehicles.
With insurance rates regulated in the province by ICBC, the previous system saw ratepayers - regardless of vehicle price - pay the same insurance premiums (all other things equal), despite the, potentially, drastic difference in cost from the aftermath of an accident and claim.
The new change will see an increase in premiums for those who drive luxury vehicles worth $150,000 or more because they will need to purchase insurance privately, as opposed to the traditional ICBC public insurance offering.
British Columbia, along with Saskatchewan and Manitoba (and Quebec, to an extent) are different from other provinces and territories in Canada in the sense that there’s government involvement in insurance regulations. The other provinces allow private insurers to offer, fully, car insurance for those that reside in that province or territory.
While BC, Saskatchewan and Manitoba allow private insurance providers to offer additional coverages, the basic coverages must be purchased through the government-owned insurer, which is what ICBC is.
‘’For those curious about how government insurance works compared to being in a province where private insurance companies are able to provide policies wholly, the provincial regulations will extend to risk, damage, and claims assessment and payouts,’’ Lance Miller, CEO of Surex , said. ‘’Instead of companies evaluating with relation to the data of their customers and research, each provincial government insurance company will have their own regulators handling and evaluating those situations and determining insurance premium costs.’’
According to a Chek News report, the luxury car market in BC has grown by 30% in the past three years. With more of these high-end vehicles on the streets in BC, it makes sense that this new policy would come into place, ensuring those that can afford the luxury vehicles are the ones responsible for paying for the damages, and not the regular BC automobile driver.
Again, this update mostly affects owners of luxury vehicles worth $150,000 or more in British Columbia. Drivers of these vehicles will need insurance exclusively from a private, non-ICBC provider. It will have minimal, if any, affect on insurance premiums on vehicles worth under $150,000.
If you’re a British Columbia resident and have any questions regarding this new insurance change, ICBC’s website is the best resource for information and contact option.