Icbc doubling rates on cars over $150k-

The most expensive claims are from injuries or death, not from repairing vehicles. I seldom heard super cars kill pedestrians, but very often, huge double cabins do.
I think it's near election, politicians are trying to gain sensation, they want people to think that they are helping the majority (who don't own super car). Just like the investment home tax if not being rented out. How on earth can you determine if this house is being left empty? For example, if I have lots of money, I can live in West Van during the weekend and back to Shaughnessy on week days.
Then, if I buy a very good quality house which I want to keep for my son, I think he's going to marry his girlfriend soon in few years, of course I don't want to rent it out, thinking that the tenants will damage the house so I will hand over a bad quality house to my son later. If they really want to solve the rental problem, why not use the crown lands to build government rental housing instead of forcing people to rent their property.
And speaking about Ferrari insurance with ICBC, even if you only pay for the plate (no insurance), still they will increase the price every year. 458 Spider only plate was $2,000 in 2013, now $2,600. I can say, I'm actually supporting those Corolla drivers.

 

Legislative change would be required for ICBC to cease to provide basic mandatory insurance ($200K third party liability and accident benefits) for all BC vehicles, regardless of value of the vehicle. My understanding is that current rates for "basic / mandatory" are based on driver experience / claims history and geographic location, i.e, vehicle value is not a factor. My further understanding is that legislative change would be required to introduce "vehicle value" as a factor in setting rates for basic mandatory coverage. However, ICBC would not require legislative change to simply decline to provide optional extended liability coverage and "own damage" coverage (collision and comprehensive) on vehicles with a value over a certain amount. They can do that right now.

In one news briefing, I recall mention that legislative change is under consideration. Perhaps such legislative change would pertain to vehicle value as factor in rates for high-value vehicles or perhaps is pertains to substantive changes in current partial no-fault scheme, e.g., a complete no-fault scheme for injury and/or property damage.

Jon

 

To the best of my knowledge and as was previously noted by "mik458spider", claims costs from injury claims continue to be greater than for material damage claims. However, material damage costs have increased substantially over the years, as well. More sophisticated cars and parts across all brands, have contributed to increased material damage costs e.g., headlight housings, larger glass, airbags, etc..

I agree that an actuarial assessment, as to the extent to which damage to high value cars is driving the overall claims costs, would be interesting. I wouldn't agree, however, that private insurers will necessarily lower the rates for Ferraris et al, particularly for less experienced drivers. There might be some niche insurance providers who can make money in the high value car market but they would be very selective in who they insured.

I also agree that the provincial government should keep their hands off insurance premiums.

 

They won't even insure a Lamborghini or Ferrari after they change the laws. This is why I didn't buy a Superleggera twice. I started hearing rumors about crazy premiums or flat out no insurance what so ever. If the clowns at ICBC stop insuring them everyone should have the option of opting out of ICBC coverage. They made huge profits for years and siphoned it off to the government and now they are in trouble and are using exotics as an excuse. BS!

 

Way to much government intervention these days.

 

What if the guy in the $6000 Honda dings your Aventador?

What do owners of older (ie 25+ years old) exotics do?

 

The media releases are not clear as to whether the coming changes affect mandatory "basic" and / or "optional" coverage and seem to conflate the two. For example, e.g., from the provincial government's (not ICBC's) website: http://news.gov.bc.ca/releases/2016TRAN0368-002487.

With respect to older cars, that media release includes the statement: "The new rates will apply to private passenger cars only, and not commercial trucks, pick-up trucks, collector cars or limousines. The new rule also will not apply to RVs."

Older cars, such as my 328, may qualify for "collector" status. Sure hope that continues. It's a great deal.

 

Don't worry guys, after election everything will be back to normal. The polling shows that Christy's voter are getting less, so she is trying to become a robin hood now, stealing from minority to give to majority. It is no secret that in Vancouver today, if you talk about plan to make rich investors lose money, or wildly accusing rich people are economic criminals, or talking against immigration, many people will give you thumbs up, even your mouth is bigger than your brain.

 

Do you actually think that an NDP government would be more empathetic to owners of high-value cars?

 

NDP is even worse. Actually the NDP started this by playing against the rich. Unfortunately the society is not healthy IMO, people actually like it when they try to direct the problem instead of giving a solution. It's no secret that even you cannot make people to be able to afford a house, as long as you can hurt those who already owned a house (make them lose money), people (who don't own a house) will vote for you. Because NDP is booming in polling, now Liberal is also playing the same game, the robin hood tactic.
If 150k price tag is the standard, not only Ferrari or Lambo. Even some Mercedes, Audi or BMW cannot buy insurance. Canada will be the first country in the world to do so. So many years of lecturing others about free market, now we have politicians who are expert in abusing the free market. I really hope this is temporary due to election. If not, I will consider moving to other place.

 

Yeah, this is pretty crazy. Heard about this the other day.

Considering Tesla, Audi, BMW, Benz, and many other luxury, but not crazy luxury brands easily get up to 150, what do all these people plan to do?

As well, even if repair costs are higher, what's the total cost payouts or claims per year on these 3000 cars? What about compared to regular cars?

Why not just scale vehicle value against driving record/insurance cohort and calculate it all that way? Seems really weird to me. It also feels bad that driving a 2001 911 costs me over 3500/year because I'm 25, and the car is worth less than a Honda Accord that's new. Why am I being gouged, and I'm the safer driver out there?

Feels very bad.

 

This is all a political play. ICBC is a scam insurance company. They need to get rid of it and allow competition.

I have a perfect driving record with full discount (43%) and pay nearly $4000/yr for my BMW M6. Ridiculous. And with these retarded new rules, it will be even more.

 

Find another insurance company. 4k for an M6 is way too high.
My 599 is 2k, My new Maserati GT is 1400. all my other cars are in the 1100 range.

 

The problem with comparing insurance rates between provinces is that the provinces have different compensation schemes that affect claims costs and rates e.g., various forms of no fault versus tort. BC could change its "mostly tort / partial no-fault" scheme, as was contemplated about 20 years ago. There are many competing interests with different professions making money from the current scheme. And there are no "perfect schemes", as the Ontario motorists, insurers, medical and legal professions would know from the various changes they have experienced over he past several years.

 

That sounds a bit high for a bmw,I only pay $2400.00 with 43% discount on my murcielago.
I think you will be o/k with the new rules because it's only on cars that are over 150k.

 

My friend just insured his brand new Huracan via ICBC and he's paying $4k/yearly.

 

$3600/year. Full discount (43%). My 355 and 550 are cheaper.

Car is a 2014. The MSRP was $170k or so.

My 2012 S63 was also $3600 and I had to apply to get the coverage since it was on ICBC'***** list.

Just doesn't make sense to me that we pay so much when similar cars across the country or in the US pay less than half in some cases.

This whole targeting $150k+ cars is pandering to the masses that are upset about inequality before the upcoming election. Their insurance premiums on luxury cars are profitable...it doesn't make any other sense.