Tj40

http://canada.autonews.com/article/2...utonews-weekly

So if you read the article it comments that cars over $150K cost the BC insurer 2.3M in claims across 3000 vehicles. Unless my math is wrong that's an average claim of $767 vs insurance cost of $1000.

So they would still be ahead on these policies? Of course they may not be including their overheads but I thought the point of BC's insurance was to make this affordable and not make loads of profit?

Of course I live in Ontario but at cars and coffee events $100 a month seems to be what people are paying even if you are driving a Ferrari (logic is that accident rates tend to be lower for these high end cars...)

petee1997

They would be losing money with that loss ratio. The processing cost per claim could easily average $500.00. Then there is general overhead and commissions paid to their agents selling insurance..

If I were them, I would simply adjust the premiums to reflect the cost of doing business. It's stupid to just walk away from the business.

Donster

What a joke. ICBC generates hundreds of millions of dollars of "surplus revenue" annually which the provincial government simply dumps into general revenue. The actual amount varies but it's typically $200 million to $300 million every year that the government siphons out of ICBC, in what is effectively a huge tax on vehicle owners.
The $2.3 million they paid out for claims on "high-end luxury vehicles" probably wouldn't cover more than a month's worth of executive bonuses.

Walt L

Typical Government smoke screen...
Look over there!! Those big bad high priced cars are the cause of all the evil....
Don't look over here where the proposed 42% Basic Rate Increase is going to wack every single driver over the head....

Oh and when that inexpensive to fix, insured by ICBC, little Civic backs into the, forced into private insurance, Ferrari in the parking lot, guess who's paying to fix it? That's right suckers!!!

ICBC

gruppe75

Also guys, there is an additional 3% sales tax added to any luxury car. ie $150,000 x 3% = $4500. I just can't imagine the taxes we have to pay for any of the GT3 RS, Ferrari, and Mclaren's that are substantially more than $150k.
I think ICBC needs to get there house in order

Donster

That's only true if you take the $1000 figure at face value. Nobody in B.C. insures their car for $1000! That figure is for "basic coverage" with a maximum deduction for a perfect driving record, nobody aged 16-25 in your home, not living in the Vancouver area, don't drive your car to work, no collision coverage, maximum deductible, etc.etc. The claim that anyone in British Columbia is insuring a high end luxury vehicle worth >$150K for $1000 is an outright lie.

Another thing I wonder- now that the Ford F-150 has an aluminium body, will insurance premiums for F-150's rise? Certainly they will cost far more to repair than trucks with conventional steel body panels.

I am the Walrus

This new policy doesn't even make sense, for those that are unfamiliar with our province of British Columbia;

It is compulsory for every vehicle to have "basic autoplan" insurance provided ONLY by our province's car insurance provider, called Icbc.
About 15 years ago the government passed legislation allowing insurers to purchase their "optional coverage" via Icbc OR a private insurer.
We have at-fault insurance here, if you didn't cause it, you don't pay...
So in the spring 2017, they are passing legislation to cease insuring "luxury" vehicles worth of 150k (canadian ;-( )
BUT, all the other motorists in BC 99.99% will still be driving around in all other vehicles insured by Icbc .
So if it's the other drivers fault, said luxury vehicle is repaired and paid for by Icbc, having no effect if the luxury car was insured by Icbc or not.
So, imo, this is a smokescreen for the upcoming 42% rate increase to Icbc basic insurance over the next 5 years.

What would make sense is to raise the Icbc insurance rate for high end cars, that is fine. The government official in charge, MLA Todd Stone tipped his hand to the truthfullness of this as he has as of the day of this policy announcement, declared that until they bother to pass the legislation they are immediately doubling all 150k plus insurance costs... talk about back of the napkin economic policy lolz!

Also, when pressed in a subsequent interview with the press, he actually said, a lot of the details are up in the air, he's not sure how it's going to work ...roll eyes ...
Edit: link to the above interview;
http://vancouversun.com/news/local-n...n-luxury-autos
Lastly, we have an election in spring 2017, the BC Liberals, (actually a coalition of liberals and conservatives), have been in office for 15 years due to the only alternative being the NDP....but they share many of the same qualities.
I'm waiting for my bill on my AMG GT s to arrive, I supppose as soon as they manage to multiply by two.

creaturecat

good for one more round. the 3-500000 grade 12 grad present, before the legislation is passed ........

PPo

I sense a general growing trend of people sick of inefficient government organizations based on the information the media and the internet provides. If this trend continues, some powerful and trigger happy country is going to vote for a leader that used the information to mobilize an otherwise ambivalent population.

Insurance companies know the risk, and take advantage of the population because they know the risk. You walk away from a casino and an insurance company with much less money in your pocket, but at least with a casino you don't get the illusion that you are protected in the future. But then again, I usually get escorted out of a casino by three big guys in vests and somehow not having the ability to walk... I wonder if you can get free drinks if you are a high roller at an insurance company?? Why not? Exactly... It's a conspiracy!!

Donster

Paid much attention to the news lately?
I believe that already happened around a month or so ago.

breakfast

^nothing gets past you eh

shotor

When I went to insure the GT3 the local third-party insurer refused to insure me. According to the agent my car was above their price threshold.

So, no optional [collision, 3rd party, theft, etc] coverage for cars over $150 in the future?

Most likely a back-track and spikes rates on expensive cars. As if expensive cars get the same rate as cheaper cars.

I am the Walrus

And now that the BC MLA in charge is realizing how stupid and unworkable (as you've described in your post) the initial policy was, here he is today throwing more policy "changes...ideas..?" around on talk radio.

It's obvious MLA Todd Stone didn't even bother to inquire as to whether the private insurers would take this section of business. Omg, one brief phone call by one of his many assistants would have provided the answer.

It's all pre election populist bull****
Btw, if somebody hits you in bc and he caps their payout, then the driver is going to get personally sued for the difference, so it's another non starter... And we are talking about 3,000 cars out of 2.1 million lolz

And also, what is his obsession with car doors, he knows little about what he speaks, but he speaks about car doors every interview, radio and he did a video demonstration last week between the different car doors... Roll eyes

http://www.theprovince.com/news/loca...784/story.html

VICTORIA — Luxury car owners in B.C. might one day have to pay for some of their own auto repairs in a crash, even when they weren’t at fault in the accident, says the province’s transportation minister.

Todd Stone said one idea he’s considering is limiting the amount the Insurance Corp. of B.C. would pay out from the ICBC auto insurance of any driver who was at fault in a crash with a luxury vehicle (worth more than $150,000) like a Ferrari, Lamborghini or Aston Martin.

“Other jurisdictions have looked at is it viable to perhaps put a limit on the total dollar value of damages for … costs on some of this stuff, so, we’re going to look at that,” Stone told radio station CHNL in Kamloops.

“Should it just be wide open? $34,000 dollars for a door? Or do we say, you know what, we’re going to cover the cost of that door up to a maximum that’s to some degree less than that $34,000?”


The possibility of an ICBC limit would bring into sharper focus how the Crown auto insurer might save money under a plan announced last week to ban luxury vehicle owners from purchasing basic or optional insurance from the corporation.

Stone said no decisions have been made, but the goal remains to prevent basic ordinary ratepayers from subsidizing expensive luxury repairs.

“I’ve asked our team in the ministry to look at that question and to understand what are the options that are available to us that whereby, we could put some ceilings or some limits on the extent to which the rest of us ratepayers would actually cover the costs of collisions that these cars are involved in,” he told CHNL.

If implemented, the change could mean that when an ordinary driver (for example, in a Honda Civic) crashes into a luxury vehicle, ICBC would only pay out a certain amount from the Civic driver’s basic insurance, leaving the luxury vehicle owner potentially to go out-of-pocket, unless that driver has private insurance to cover the remaining repair costs.

On Thursday, Stone deflected additional questions. “What I’ve said is we’re going to explore every option we possibly can to try and restrain the costs.”

He said his ministry is discussing the issue with car dealers and the insurance industry to explore other options, such as finding cheaper ways to procure replacement parts for luxury vehicles.

NDP critic Adrian Dix said Stone and his ministry look “foolish” as they struggle to justify creating an increasingly complicated, and potentially expensive, alternative insurance scheme for only 3,000 luxury vehicles in B.C., out of 2.1 million total vehicles.

“They’ve mismanaged (ICBC), and they are desperately trying to create a diversion,” said Dix. “He doesn’t know what he’s doing and he’s making the situation worse and worse.”

Stone had said the goal was to cut costs, because it is six times more costly to repair super high-end luxury cars than ordinary vehicles. But the initial announcement bewildered analysts, who questioned how the plan would save any substantial money.

Dix has said the luxury automobile ban is intended to distract from ICBC’s financial problems, which include rising claim and injury costs that are pushing up rates. A five-year rate forecast (which Stone has called a worst-case scenario) could see rates rise as much as 42 per cent if it can’t reduce claims, cut costs and improve investment income.

rshaw@postmedia.com

twitter.com/robshaw_vansun

CLICK HERE to report a typo.

shotor

What if two cars worth over $150k run into each other? No one is covered while both are insured. Perfect!

Wonder if they are going to start talking about privatization of ICBC?

DasSilberWedge

Hey not a Ontarian post!

I'm not in the insurance business but I just don't believe 3000 cars somehow are effecting the rates of the other 3.1 million+ cars insured in BC. It's totally obvious it's just ICBC cutting their own costs to enlarge the bottom line profit for themselves despite supposedly being the best solution to keep insurance rates down for its clients.. They're just making it look like they're doing something "for the good of the people" by blaming the current rates on "the big bad cars". That video comparing a Honda Pilot or whatever to the FF was a joke, trying to send the "how dare Ferrari charge what they charge" message.. There are thousands and thousands of cars that were close to that $150k price bracket with similarly expensive parts that are now ~$50k. They're far more common than the 3000 high end cars that they claim to be the problem yet those ~$50k vehicles are the ones that are in far more accidents that the 3000 "problem" cars they claim. Think of all of the Cayennes and ML63s that get crashed in Richmond or Vancouver on a daily basis..