25 ~ Friday, September 15, 1989 — North Shore News

Not likely that , priva te insurance
companies could offer lower rates

THE MOST common complaint heard by ICBC -

insurance agents is, ‘“Why do I have to pay so
much for my. car insurance when I’ve never had
an accident?*’ Many people feel that they are
subsidizing the insurance costs of other drivers
who have bad driving records.

To some extent, this is
true. Any insurance plana,
whether it be for fife, health,
property or other, spreads
the overall payout costs for
insurance claims over the
premiums paid by everyone.

The question is, are B.C.
drivers paying more than
they should, and would 2
private car insurance scherae
be better?

B.C.’s government-run in-
3urance company, ICBC,
decides how much you
should pay based on four
factors: the doliar value of
your automobile, what you
use your car for, your past
driving record, and the area
in which you live (CBC
divides the province up into
zoncs based on frequency of
ciaims and costs of claims in
those areas}.

Unlike private insurance
companies, ICBC docs not
determine rates based on
your’. age,. sex, or marital
status. This :can be 2 real
adventage if you're young,
male aud single.

In 1988, the Toronto Star

’ compared car insurance rates

across C; Under a
private insurance plan in
Scarborough, a 16-year-old
newly-licensed male driver,
with driver training, driving
a. 1985 Ford Escort for
pleasure use only, would pay
a premium of $2,692 per
year. This compares with
$881 per year in Vancouver
at thet sume time.

So, if rates charged by
private insurance companies
are higher for so-called
high-risk drivers, are they
significantly lower for low-
risk, accideat-free drivers?

The same survey shows
that in Sudbury, Ontario, a
66-year-eld d@river whn’s

been driving for 40 years
with ne claims in the past six
years, would pay a premium
of $785 per year for pleasure
use only. But in B.C., that
same person would have

paid even iess, $643 per year.

B.C. senics citizens receive
an automatic 25 per cent
discount on insurance

premiums.

This is all the more inter-
esting when you consider
that B.C. drivers have the
worst injury record in
Canzia. Last year, B.C.
averaged 193 injuries per one
hundred milion kilometres
dviven.

This compares with an
average of 159 in Ontario,
103.5 in Alberta, and an
overalj Canadian average of
143.9.

Mr. B. E. Stanhope of the
Insurance Bureau of Canada
points out that private in-
surance companies would
not likely be able to offer

‘significantly lower rates
since rates are determined by
the amount of money needed
to cover claims, the same
principle used by ICBC.
However, Stanhope
believes that private in-
surance companies could
provide better service than
ICBC. ‘For example, we
could come to your heme to
take a witness statement, at
a time that is convenient for

Though B.C.'s automobile
insurance rates are relatively
reasonable, you can expect
to pay significantiy more for
your insurance if you have
an accident which is your
fault.

This
responsible for an at-fault
collision clair or property
damage, your premium will
increase by a stiff €3 per

cent.

Don’t depend on sharing
the blame and the cost with
the other guy-95 per cent of
all eccidents where two vehi-
cles are involved are blamed

entirely on one of the parties

in the accident. Obviously,
the benefits of reducing
drinking and driving are
enormous. A change in at-

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We also arrange purchase of
New or Used Autos.

Call: 926-TLCC (8522)
TLC Auto Centre

1531 Clyde Ave. W. Van.

year, if you are:

titude here can save lives,
reduce property damage and
reduce insurance costs.

To keep your insurance
costs as low as possible, the
most important thing to do
is to drive safely and keep
your claim-rated scale (safe
drivers’) discount of up to 40
per cent.

Also, a cheaper car will
cost less to insure, since rates
depend partially on the value
of your car (all other things
being equal).

Considering the penalty
for having an accident these
days, a defensive driving
course might prove a good
investment for many people.
We have all seen drivers who
run red lights, follow too
closely, and drive too fast in
unsafe conditions. A change
in driving attitudes could go
a long way to reducing in-
surance costs and increasing
safety.

Ken Hardie of !CBC’s
Public Information Depart-
ment emphasizes the value
of Keeping your driving re-
cord clean. “The main thing

you can do to keep your ly.”
rates low is to drive careful- And, I might add, soberly.

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