Insurance Rates to Double for High End Luxury Cars
Prince George, B.C.- Transportation Minister Todd Stone has announced changes to ICBC rates to “make them more affordable for families”.
The average car in B.C. is valued at $15 thousand dollars, but there is growth in high end luxury vehicles that have repair costs that are six times the amount it costs to fix the average car.
So with that in mind, Stone has announced the Government will, as soon as possible, double the basic insurance rate for cars valued at more than $150 thousand dollars, and as soon as is possible, there will be legislation that will end government insurance on such vehicles. Stone says owners of such luxury cars will have to buy private insurance.
The change will not impact trucks, limousines and RV.s, it is targeted to high end luxury vehicles . There are about 3 thousand of such vehicles in B.C. right now.
“This in itself will not be enough” says Stone, to offset the pressure on insurance rates and claims costs “The cost pressures are enormous”. He says there is more work to do and there will be more announcements in the days and weeks ahead.
“Right now, whether a person drives a $15,000 Honda Civic or a $300,000 Ferrari – their basic insurance premiums are similar. If owners of high-end luxury cars can afford a high-priced car, they certainly can afford to pay higher premiums to cover the real cost for their repairs,” says Stone. “This policy needs to be fair for all British Columbian ratepayers, and we want to ensure that the regular everyday driver is not paying for the additional repair costs of these cars
through their insurance rate.”
Working with ICBC, the planned rate increase for 2017 has been reduced from 15.25% to 4.9%.
Todd Stone can go to hell with his yearly rate increases. Our rates NEVER go down, no matter how long we been driving or as the vehicle gets older
You should be paying insurance premiums based on a percentage of what the vehicle is worth, just like house insurance.
Surely you jest. The New Car Dealerships Association of BC is the BC Liberals’ biggest campaign contributor. Assessing insurance rates fairly would hardly be conducive to this symbiotic parasitic relationship. You can’t have people considering the insurance costs when buying a new vehicle.
Nice positive spin on increasing vehicle insurance rates for high end cars, and reducing the proposed increase in insurance rates for the rest of us to just 4.9% for next year (2017).
But here is what you might not know; the Insurance Corporation of B.C. is refusing to make public, and refusing to provide to our insurance regulator (The BC Utilities Commission), its future (to the year-2020) projections for basic auto insurance rates, on the grounds those rate increases “could be taken out of context” by the public.
This works out great for the BC Liberal Government, if ICBC can keep us, and the BC Utilities Commission, in the dark about future projected insurance rate hikes to 2020, until after the May 2017 provincial election, there would be no fall-out for them. We would just have to swallow, and try to adjust to, those massive increases in insurance rates announced “after” the next election.
So here is what you can do; contact your local MLA and ask for ICBC to release to the BC Utilities Commission, and make public, their projected insurance rate increases for the years 2018, 2019, and 2020. Because it sure would be nice for us to know what “massive” insurance rate increases are in store for us “before” we vote in the upcoming provincial election… wouldn’t it?
Do you really think knowing what the increases will be in advance would change the reality that they’re going to go up no matter who is at the political helm? Naive much?
Hey Galt…er peops, er almost human…I would suggest that you already know who you are voting for in the next election….so that information is not going to help you one little iota in making up your mind.
I would suggest that we call a spade a spade…you are voting NDP, and will always look for ways to spin even the most positive news to something negative about the government that is currently in power.
Something else that might reduce increases is not allowing ICBC to fight, with very high priced lawyers, all the smaller claims that are made and contested.
Where there is a suspicion of fraud, yes, fight those but let’s keep it in perspective.
They actually spend a lot more on lawyers, fighting smaller claims, than the claims themselves would cost them.
yesss and STOP paying OT to RCMP to do roadblocks. That cost should be borne by the municpalities, not ICBC
In 2014 BC had the second highest insurance in the country. It looks like we’re well on the way to taking first place away from Ontario.
ICBC long ago quit being an insurance company and has instead morphed into just another Government bureaucracy!
ICBC and every other Government department/division/crown corporation needs to be immediately subjected to a freeze in their never ending increasing wages and benefits.
Next, a complete review and rationalization of all services provided needs to be undertaken to see if we, the taxpayers, are getting the best possible value for our forced taxation.
The fact that a Liberal Government is currently controlling the purse strings is completely irrelevant, as the NDP would be no better at doing what needs to be done!
Drove to downtown today from the Hart and later up to Westgate. From merciless speeding and tailgating on the Hart Indy 500 to observing drivers not stopping at stop signs, and not signaling when changing lanes etc I am not surprised about ICBC rates never going down. Instead of complaining about the rates, how about complaining about the accidents caused by drivers who behave as if they are above the traffic laws and regulations ?
I can’t help but wonder how much ICBC rates would increase IF accident and injury claims dropped by 50%, or 75%?
I doubt that accident and injury claims would ever drop by much more than a fraction of those amounts, but I suspect that even if accident and injury rates did drop by those amounts, rates would still go UP!
PrinceGeorge I can definitely agree that some people drive at crazy speeds on the Hart and drive dangerously.
That being said, 60km/hour until you get to the husky is ridiculous. Even the 70km’s until you get out of City limits is a bit on the slow side. It would be nice if the speed was 80KM. Probably 75% of the people are doing 80km’s anyway. Go after the people doing 100+KM/hr because that is getting dangerous. But 60…….it’s causing danger probably more than doing 20 over the speed limit ever would.
It is supposed to be 80 as per the study done in the past but the rcmp talked them down to 70. They said if it was 70 then everyone would do 80 but if it was 80 everyone would do 90. So it was set at 70 and most drivers take their plus 10 and do the safe speed of 80. (well except that one guy with the sign in his rear window apologizing for doing the posted speed limit. lol)
I fully agree! The speed limit going north after the John Hart bridge should have been raised to 70 after the traffic lane concrete dividers were installed ! The 60 limit makes law breakers out of all the drivers who travel at a more natural higher speed in both directions!
As for the rest of the Hart highway: I use the right hand socalled slow lane at 75. So I am not holding anybody up, but I will be tailgated after just a few hundred meters !
The tailgating will get worse to the point that the frontend of the vehicle behind will not be visible in the rearview mirror when I am in the left lane getting ready to use an exit lane to the left !
Wish the cops would be there at least once to witness the coercion inflicted upon a vehicle that appears to be pulling another vehicle with a three foot rope !!!
What a crock of horse ####. ICBC is not losing money and never has. What percentage of luxury cars are there in BC? Open the books and show us why you need to increase rates. Quit robbing ICBC to pay for all their court case losses. Looks like the Liberals are looking for a little extra cash from the private insurance companies. You scratch my back and I will scratch yours. Todd is also saying to the private insurance companies that they can double the insurance for Luxury cars.
I guess they think British Columbia citizens are pretty stupid and maybe they’re right, because we keep letting them get away with this stuff.
Wow, they’re going to make idiots who spend more than $150k on cars pay double premiums and that will have an impact for the average rate payer. What a joke.
Well, by my calculator this won’t amount to squat in the big scheme of things, but when I read the title, I was thinking they would set the luxury bar around $75,000 or something more reasonable like that. What kind of a moron spends more than $150k on a car in British Columbia. Talk about more dollars than sense.
Breaks down like this:
As per the 2015 ICBC annual report, there were some 3,596,000 policy holders, who on average paid $1,196 for insurance. This yields around $4.3 billion in premiums.
Now for the sake of argument, let’s say these rich morons pay $2,500 annually for their insurance. I don’t know the actual figure because I’ve never known anyone that stupid. It could be much higher, but if the article is any indication, it’s not. Even if you double that and charge these 3,000 odd vehicle owners double, it doesn’t help much.
($5,000-$2,500)*3000 = $7,500,000 which is 0.17% of total premiums, less than 1/5th a percent. By my calculations, that would average down the other 3,593,000 policy holders premiums, assuming all other things remain the same, by $1.09 per year. Thanks a bunch.
I can believe we pay these buffoons to come up with this nonsense.
It was a designed distraction, so you wouldn’t focus on the incoming 42% increase over 5 years.
Another thing Todd maybe you better take a look at the Tax you collected on that 300 thousand dollar Ferrari. As far as I am concerned people in this province have to be nuts to put up with this crap or just plain stupid.
Here’s what you may not know:
A citizen paying the exorbitant icbc rates (2 X what our friends pay for same vehicle outside bc) can be driving home from work . . .
get hit in a T bone accident, totally not their fault
ICBC pays them nothing for lost wages, doctor prescribed medications or physio
next . . . they lose their jobs, homes, marriages.
The BC health care system also fails them when their family doc doesn’t support them and they are recommended to a surg for “assessment in 3 years”.
then, only IF they have family support who can afford private surgery they have a chance …
how does one end up on the street in three weeks? this is how.
Remember this come may 2017. Change is a blowin in the wind.
So owners of luxury cars get to buy private insurance now?
Sorry Todd Stone and the BC Liberals, we won’t be distracted!!!
“As soon as the B.C. government was forced to reveal possible ICBC rate hikes of up to 42 per cent over the next five years, it was time for them to reveal something else: A sleek, shiny, turbo-charged distraction.”
“The government’s message: Pay no attention to that humongous rate hike bearing down on your wallet like a runaway 18-wheeler, B.C. drivers! We’re bringing the hammer down on wannabe James Bonds tearing around in Lamborghinis and Maseratis via even higher insurance rates for $150,000 vehicles.”
Come on Peeps, stop picking on James Bond and get things straight!
James Bond’s car of choice was usually an Aston Martin, not a Lamborghini or a Maserati!
So, people tearing around in a Lamborghinis or a Maserati would obviously be “wannabes” of somebody else!
Joe Blow it mentions over 3000 of those cars in BC. Most likely an election puff piece but myself I don’t want to subsidise their repairs. Also those with ultra highmilage cars and electric are not paying their share of road tax. Let’s see Christy go after them.
You and your alt -right friends in the south are already being effective in your war on renewables and EVs . Insideevs.com is reporting that a very sophisticated criminal vandelized a supercharging station between LA and Vegas . Keep up your propaganda mutt . It’s working . Maybe you can encourage a more proactive nut bar to do the same . Even city hall is afraid to even look at electric buses . Maybe write a letter against Vancouver looking at them . It’s not too late . If interested . Musk has found out whom is funding the musk/ev/solar hate groups . Utilities and big fossil . Imagine my surprise .
My bet is that within 3 months of being re-elected or the NDP being elected the rates would go back to normal for the high priced cars .
Wouldn’t want to make your donators angry .
If the government stopped funneling the ICBC premiums into the general coffers and kept them strictly for ICBC, where they are supposed to be, there wouldn’t be any funding shortages for them.
Ya, but then Premier Photo Op couldn’t crow “no new taxes.”
It’s the BC Liberal way – spin and corruption – remember this one?
“The Crown Corporation, Insurance Corporation of British Columbia, learned in 2007 that employees at a Burnaby facility purchased 55 vehicles which were written off by the Insurance Company, and then later sold privately for a profit. In most cases, the vehicles were sold with misleading information so that purchasers never knew the history of the car and the damage that it had been through under previous ownership.
Although three very high-ranking employees left ICBC, they were paid a reported $850,000 in severance. ICBC said they had closed the loopholes, but never identified the employees publicly, nor indicated they had punished them in any way.
That means that these people, who acted under fraudulent circumstances, could be working for a different company right now, without that company ever knowing their prior history. They could be working for you.
The article states basic insurance. Basic insurance has nothing to do with Collison and the cost of repair so ICBC is blowing smoke on that one.
Forget the high end auto. If one purchases an auto for $20,000.00 and purchases Collison insurance 10 years later the auto might be worth $5,000.00 but rest assured if an accident occurs ICBC will give a payout for the market value and not repair the car yet the cost of insurance rose over the years and did not decrease with the declining value of the auto.
ICBC is nothing more than a Liberal cash cow ripoff. Open up the auto insurance industry to private insurers is really what should happen.
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