August 13, 2019 (VANCOUVER) – British Columbians continue to pay the highest auto insurance premiums in the country, according to the latest data released by the General Insurance Statistical Agency (GISA) which is the statistical agency run by Canada’s provincial insurance regulators. And prices are expected to continue rising in the years ahead, according to ICBC latest financial statements.
Average Auto Premiums
British Columbia
|
Alberta |
Saskatchewan |
Manitoba |
Ontario |
Quebec |
Newfoundland and Labrador |
Nova Scotia |
New Brunswick |
Prince Edward Island |
|
$1,832 |
$1,316
|
$1,235
|
$1,080
|
$1,505
|
$717
|
$1,168
|
$891 |
$867 |
$816 |
British Columbia
|
$1,832 |
|
Alberta |
$1,316 |
|
Saskatchewan |
$1,235 |
|
Manitoba |
$1,080 |
|
Ontario |
$1,505 |
|
Quebec |
$717 |
|
Newfoundland and Labrador |
$1,168 |
|
Nova Scotia |
$891 |
|
New Brunswick |
$867 |
|
Prince Edward Island |
$816 |
Source: GISA & MSA data for private insurers (as of December 31, 2018), SGI Annual Report (2018), MPI Annual Report (2017), Société de l'assurance automobile du Québec (SAAQ), and ICBC Service Plan (2019).
*Manitoba figure is from 2017 due to 2018 not being available.
“Under ICBC’s monopoly, British Columbians will again pay the highest auto insurance prices in Canada, with premiums now averaging $1,832 annually. While many important changes are underway in BC, none are expected to begin to reduce the price most drivers are paying,” said Aaron Sutherland, Vice-President, Pacific, Insurance Bureau of Canada (IBC). “With ICBC stating that it will need price increases to raise over $1 billion in the years ahead, now, more than ever, the market must be opened to competition and choice to improve the affordability of auto insurance for drivers.”
The average premium is calculated by comparing the total premiums collected from passenger vehicles in each province, and dividing it by the number of those vehicles. While some organizations argue that average premiums can’t or shouldn’t be compared, this method is used by provincial regulators and provides the best possible comparison of the price drivers are paying in each province. In doing so, it becomes clear just how much more British Columbians pay for auto insurance than other drivers across the country who have the benefit of competition and choice.
An MNP LLP report found that Canada’s private insurers have increased efficiencies and developed product innovations and new ways to cut claim costs that could lower premiums for BC drivers by up to $325 annually. A recent poll showed that 82% of BC drivers are demanding more choice and competition for their auto insurance needs.
“Competition is a powerful incentive for any company to deliver the best product at the best possible price. Auto insurance is no exception to this rule,” added Sutherland. “Today’s numbers are yet further evidence of the need to open ICBC to competition and give British Columbians the ability to shop around for their auto insurance needs.”
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