Left Navigation Public Versus Private Auto Insurance Public and private insurers provide auto insurance. Both compete for your business, and private insurance companies provide more options and better value. The government runs the auto insurance system in British Columbia, Saskatchewan and Manitoba. In Quebec, the public insurer manages the insurance regime for bodily injuries only. How Much does Public Insurance Cost?The cost to establish a government-run or public insurance company is estimated to be in the hundreds of millions of dollars. Costs include:Taxpayer subsidies. Due to insufficient startup funds and mandated low premiums, all public auto insurers in Canada require subsidies.Reduced private-sector investment. Private home, auto and business insurers directly invest in the provinces in which they do business. Direct investments include corporate shares, bonds and real estate. Does Public Insurance Offer Better Service?No. Other disadvantages of government-run insurance include:Limited choice for customers and questionable customer service. Public auto insurance provides a one-size-fits-all solution with, for example, fixed deductibles and no multi-vehicle discounts. Private insurers compete to offer the lowest possible rates, strong service delivery and a wider range of policy options.Lack of product innovation. Public insurance companies have a captive market share so have no incentive to develop new services. Privately run auto insurance companies have created product innovations, such as first-accident forgiveness, replacement cost coverage and roadside assistance. How Private Insurance Works for Consumers and BusinessCompetition delivers more choice and value. Auto insurance is purchased competitively in almost every jurisdiction in North America. Most people believe in the free market for nearly all the products they buy. In fact, some provincial governments deregulated several former public monopolies in recent years and consumers are benefiting from increased options.Insurance rates reflect true cost. Premiums in a competitive environment reflect the real cost of insuring a driver. For example, auto insurance premiums are based on factors that affect the frequency and cost of claims. It's the cost of claims that determines the premium level for private insurance consumers. Employment opportunities. Private insurers provide vital injections of investments, jobs and taxes into local economies. The private insurance industry in Canada employs almost 118,600 people, either directly or through its support of a broker workforce. Jobs and investments increase when more companies compete for business.Why Competition In Insurance Is Important To You Understanding InsuranceLife is a risky business. Sometimes those risks hit home – a car collision… your basement suffering water damage… your business interrupted by vandalism. At times like these, insurance is there to help us recover, get us back on our feet and provide peace of mind. Related ServicesInsurance BasicsWithout insurance, driving a car, buying a home or starting a business would be an unaffordable risk.How to Buy InsuranceYou can buy auto, home and business insurance from private insurers. When driving a car, buying a home or establishing a business, insurance can give you peace of mind. Useful LinksAutomobile InsuranceRequired by law across Canada, auto insurance covers the owner/driver, passengers, pedestrians and property affected by a vehicle collision. Buying Home InsuranceAs a homeowner, you need to insure your house for replacement costs so that in the event of serious damage or destruction you have adequate coverage. Be sure to keep your home insurance current by reporting material changes or upgrades. Business Insurance CoverageInsurance protects you from losses that may pose a significant threat to your business operations. A major loss to one organization may be a trivial loss to another. When selecting coverage, deductibles and policy limits, there are many factors to consider.