New ICBC Rates: Who Will Pay More?

[320icar]

Eby announced proposed changes to auto insurance rates that would give about 39 per cent of drivers a reduction up to $50, 13 per cent between $50 and $100, and 15 per cent more than $100.

Wow, a 10 year clean record with no accidents or tickets and has to pay just over $3000 a year for insurance. But don’t worry, we’ll take $50 off. Thanks for that 1.6% decrease even though my rates have been steadily going up for 5 years. Cunts

[RRxtar]

Figures released by Attorney General David Eby, Friday, show losses continue at the Crown insurer – and were larger than anticipated for the second quarter.

"For too long, financial problems at ICBC were ignored and hidden from the public, resulting in a $1.3-billion net loss in 2017-18. Unfortunately, ICBC's second-quarter results for 2018-19 show that its financial position remains serious, and ICBC is now forecasting a larger-than-expected loss of $890 million this fiscal year," Eby said in a press release.

"This financial situation reflects the mounting pressure ICBC is under from the rising number and cost of claims. The primary reasons are higher bodily injury costs, as well as claims taking longer to resolve, which often result in higher claims costs."

Eby, who after taking office called ICBC's situation a "dumpster fire," said a key driver of increased costs is a growing trend toward lawyers "strategically building the value of the claim."

"These trends are becoming more severe. Since March 2017, the dollar value of settlements demanded by plaintiff lawyers for litigated files increased by 27 per cent. The average cost of closed litigated injury claims for the first six months of ICBC's fiscal year rose from $100,427 in 2017 to $121,686 in 2018, a 21 per cent increase."

Eby said government is looking for ways to accelerate efforts to solve the financial problems at ICBC.

Changes announced earlier this year should produce savings of $1 billion annually, he predicts. However, most those won't take effect until April 1.

"It is now clear that this government needs to look for even more ways – beyond what is already planned – to further reduce the escalating cost of claims," he said.

Well well. A year after simply blaming the Liberals for the icbc issue, the ndp is now admitting that the problem actually is tied to claims

[Hondaracer]

David Eby is such a fucking sack of shit, i cant believe people actually voted for that goof..

[vexor]

Our BC government is a dumpster fire nevermind icbc

[twitchyzero]

890M in the red

this beer, hold it.

1.3B, boom.

oh hey, still want that bonus though?

[mikemhg]

This whole ICBC situation is unattainable. Mark my words, this issue will not be resolved, the insolvency will not be fixed.

This is the frustrating thing about this Province. None of this is sustainable, yet we act like it can keep treading water. This Province will need to make some serious changes on the next number of years, and it will hurt a lot of jobs and people, but it is necessary for the long-term outlook.

ICBC eventually will need to be dissolved in some shape or manner, get them out of the insurance business, allow them to handle licencing and other regulatory factors.

ICBC's insurance pool is broken, when a pool becomes this insolvent it's almost impossible to correct without major investment of funds, which clearly will not happen.

These incremental increases will continue to occur in higher amounts year after year to the point where it will create some real issues on the viability of the Province's economy, if it has not already.

[yray]

LOL last 2 weeks probably added 50mil to that number anyways

[van_city23]

Originally Posted by Hondaracer

David Eby is such a fucking sack of shit, i cant believe people actually voted for that goof..

he blames everyone but icbc for a mess that icbc management created.

[RRxtar]

To be fair, it's not so much a problem that icbc created. It's a problem that every person looking for $100k from a fender bender causes. And it's a problem that our fancy cars with led lights and radar an expensive parts causes. And icbcs own numbers show that.

[CL typeS]

Originally Posted by RRxtar

To be fair, it's not so much a problem that icbc created. It's a problem that every person looking for $100k from a fender bender causes. And it's a problem that our fancy cars with led lights and radar an expensive parts causes. And icbcs own numbers show that.

Yepppp, just had a parking lot fender bender, wife was at fault. Waited a few weeks and called ICBC to see if I can payout the claim for the other party....noppeee, they claimed injury

[Jmac]

Originally Posted by RRxtar

To be fair, it's not so much a problem that icbc created. It's a problem that every person looking for $100k from a fender bender causes. And it's a problem that our fancy cars with led lights and radar an expensive parts causes. And icbcs own numbers show that.

ICBC has a notable history of low initial offers and one might argue that behaviour helped create the environment they currently find themselves in.

[welfare]

Originally Posted by RRxtar

To be fair, it's not so much a problem that icbc created. It's a problem that every person looking for $100k from a fender bender causes. And it's a problem that our fancy cars with led lights and radar an expensive parts causes. And icbcs own numbers show that.

Yea but neither of those is exclusive to bc really.

[Gerbs]

So is ICBC reporting $1.3B in losses in 2017? Or are they in a 1.3B negative cash flow? What's their financial situation looking like

[twitchyzero]

are there other major cities in Canada that have a crown corp running vehicle insurance?

or is this very unique

think about it, Vancouver didn't even really get a snowfall last year (yes I know Vancouver =/= BC), but if you add an ice storm or two in we'd probably hit 2B no problemo

[68style]

??? Vancouver surely did I had a winter beater last winter and was in up to a foot of snow in Richmond.

[Jmac]

Originally Posted by twitchyzero

are there other major cities in Canada that have a crown corp running vehicle insurance?

or is this very unique

think about it, Vancouver didn't even really get a snowfall last year (yes I know Vancouver =/= BC), but if you add an ice storm or two in we'd probably hit 2B no problemo

BC, Saskatchewan, Manitoba, and Quebec.

[MarkyMark]

Originally Posted by RRxtar

To be fair, it's not so much a problem that icbc created. It's a problem that every person looking for $100k from a fender bender causes. And it's a problem that our fancy cars with led lights and radar an expensive parts causes. And icbcs own numbers show that.

To be fair, wouldn't they be in less trouble if the Liberals didn't raid all their profits to balance their budget, taking 1.1 billion over 6 years? Or how about ignoring the report in 2014 about the trouble they were in? But yeah, fuck Eby.

[underscore]

Didn't the gov't pull over a billion out of ICBC though? It doesn't matter how well it's managed or how fairly paid out claims are if the provincial government is using it to shift debt around.

Combine that with the people making false injury claims, vehicles costing more to repair/being easier to write off, shops inflating bills, bloated management, and all the other issues and you've got one hell of a mess, but only so much of it can really be controlled by ICBC, or could be fixed by eliminating it.

Originally Posted by Jmac

ICBC has a notable history of low initial offers and one might argue that behaviour helped create the environment they currently find themselves in.

How do they compare to other provinces though? I highly doubt any private insurance company would be generous with their initial offers.

[RRxtar]

the liberals pulled $1billion total from ICBC over 5 years from 2011 to 2016 and they didn't pull money out in 2017. That is an average of 0.25b. Yes its some, but ICBC being $1.3 billion in deficit in ONE year, does not mean they are in deficit because of the liberals pulling money out over several years. the $1.3billion isn't an accrued debt, it is an operating deficit. they paid out $1.3billion more in expenses in 2017 than they brought in. And again, that is with no cash pulled out in that year. The problems go it deeper than that

[Jmac]

Originally Posted by RRxtar

the liberals pulled $1billion total from ICBC over 5 years from 2011 to 2016 and they didn't pull money out in 2017. That is an average of 0.25b. Yes its some, but ICBC being $1.3 billion in deficit in ONE year, does not mean they are in deficit because of the liberals pulling money out over several years. the $1.3billion isn't an accrued debt, it is an operating deficit. they paid out $1.3billion more in expenses in 2017 than they brought in. And again, that is with no cash pulled out in that year. The problems go it deeper than that

It's part of it because ICBC had to borrow money with interest instead of having money in reserves making money via investments. It was also $1.2B, not $1B.

Most of the crown corporations in BC had to borrow money just a couple of years into the new policy (BC Hydro another notable one) in order to pay their dividends (again, borrowing with interest).

[Jmac]

Originally Posted by underscore

How do they compare to other provinces though? I highly doubt any private insurance company would be generous with their initial offers.

You may be correct, I'm not really sure and that data doesn't seem to be publicly available.

I do know many people gripe about ICBC's offers and end up going to a lawyer when they're not satisfied.

There's also the possibility of insurance fraud, particularly from organized crime. This was suspected to be a significant cause behind Ontario's high payouts and premiums.

[Traum]

Originally Posted by twitchyzero

are there other major cities in Canada that have a crown corp running vehicle insurance?

or is this very unique

think about it, Vancouver didn't even really get a snowfall last year (yes I know Vancouver =/= BC), but if you add an ice storm or two in we'd probably hit 2B no problemo

As Jmac has already pointed out, there are no other major Canadian cities that have a crown crop providing public auto insurance. Regina and Winnipeg have a much lower population density than Vancouver, and while I haven't been there before, given how their drivers don't create massive spikes in car accidents when they get 2cm's worth of snow, I suspect they are in general "better" / safer drivers than we are. I've been to several places in Quebec a whole bunch of times, and I'd also say their drivers -- esp those in Montreal -- are generally more skillful than we are.

Add to that parts of Metro Vancouver have a disproportionately high number of new / inexperienced drivers driving high end vehicles (some of which don't even have valid BC driver's licence, it is little wonder that our auto insurance payouts are so damn high.

[welfare]

I was thinking about this awhile back; why does bc, specifically the lower mainland, have such worse drivers than other places?
I came to the conclusion that it's likely because there are so many people from different parts of the world here.

Driving rules and behaviour, as well as climate and conditions, differ dramatically between cultures. It's just a fact.
If i were to go to say Vietnam and drive, using my prior driving experience, the chance of me getting into an accident would be high.
Now you multiply that by thousands, and then compound that by the twenty to thirty (really being modest with this estimation) different cultures, and it might be surprising the accident statistics aren't higher than they already are.

That's not to say any culture exhibits 'better' habits. My driving would not be considered 'better' in Vietnam by their standards. Just that the rules and habits differ and would be difficult to sync.

[twitchyzero]

i dont buy the 'because cars are getting more complicated/parts ballooning in price' since that applies to everywhere else

are there way more $120k+ vehicles on the road than im aware of, or every second claim is fraudulent in some way, or ICBC is getting more inefficient?

[yray]

or that lower mainland drivers are the saltiest in the world

just do a proper zipper merge and go about your day, getting ahead one car length isnt raping your love one