Insurance in BC

[Oveeus]

Don't get the road Star coz $30 from that can't be refunded. Road Star costs $48, you'll only get $18 refunded.

Is the road star package attached to the comprehensive part? I usually get it for the sake of rental coverage when we rent car for longer road trip/out of town travel. If it’s separated, I don’t mind paying that.

I know bcaa offers optional coverage for rentals, but I’m not sure how much cheaper it can be considering what icbc offers for $48

 

[525SNAP]

So, just to double check on how I’d go with this.

I buy the full coverage with icbc during delivery, go home and get the insurance from bcaa after. Icbc will then refund the comprehensive portion of it (minus any pro-rated days) once bcaa takes over.

Did I get that process right?

Yes.

But what I will suggest is actually going into BCAA and get a full quote first and ask them any questions you have regarding refunds and all that. If you're in Vancouver they've been getting a ton of quote inquiries for Teslas so they should be knowledgeable. Make sure you ask about the preferred driver discount, clean vehicle discount, and if you have BCAA membership, get the membership discount.

 

[Funkmobile]

I believe that Aviva is the underwriter for the Colwood policy

Unable go with BCAA. We HAD a clean record until last winter. Hubby barely rear ended another driver. We both reported to ICBC, but no Claim on either side. And still another 1.5yrs to wait out if the other party will put in a claim despite no damage.

Aviva I believe no longer offers insurance in British Columbia.

Looks like I may be going with Optiom or Colwood since they are comparable.

Thanks. I have that sheet as well but wanted more details. When I tried to get the Insurance lady to explain it to me, she was reluctant to explain & kept encouraging/pushing us to purchase ICBC's NVReplacement. I was tired of talking in circles not getting my questions answered so ended up purchasing ICBCs for now.

Anyone else purchase from Colwood?

The administrator of this policy is Colwood and the underwriter is Aviva, at least that's what is says for my policy when I bought it back in October. I went with the 5 year option. The definition of total loss is determined by ICBC. So if ICBC delcares your car a total loss, this policy will kick in. It's also a big bonus that for damages that can be repaired, this policy will reimburse you for the deductible (max $300) as well as your windshield deductible.

 

[hiener]

BCAA discounts, because they need to manually add them to the policy

Anti-theft
ESC
Fuel Efficiency
BCAA member
Preferred Driver

One thing to note with BCAA Replacement Cost Plus, it's coverage is for 3 years. $250x3 years, $750. Colwood is $1200 for 3 years but can do 5 years for the $2000.

 

[MexiCanuck]

I don’t share others’ hatred of ICBC

I agree, the corporation needs a shake up, but it’s in the position it finds itself because its coffers were raided by the BC Liberals

Premiums could be lowered by a significant amount if modern technology was adopted - online renewals for example would remove the enormous commissions paid to Autoplan agents (really wish I could find the TV report where it was found they make up to $600 on a simple renewal)

I'm not sure where these stories of huge commissions for renewals come from. I don't work in the insurance industry, but I work with some people who do. Commissions vary, but do not approach $600. You might be referring to the Global News story that said

"Global News obtained a copy of the broker remuneration plan for 2019 that shows a fee structure ranging from the 3.11 per cent base premium for drivers with no discount to 19.93 per cent for drivers with the highest safe driver discount."

https://globalnews.ca/news/4823459/...n-when-safest-drivers-get-optional-insurance/

Notice that the 19% level is for people who have the 43% safe driver discount. So on a $1,000 policy the commission would be $190. That same $190 would comprise a smaller percentage commission for people who receive no safe driver discount because the same coverage would cost much more.

The whole car insurance industry here in BC is unnecessarily bloated - but you get what you pay for. Do other provinces have agents that travel to meet you where you buy your car?

Yes, that is common practice in any province where I have bought insurance. ICBC doesn't pay anything for that. The insurance agency pays an employee to sell the insurance at dealerships. The insurance agency bears the cost of the service. They do it because they can get lots of standard commissions by being the exclusive agency at the dealership.

My biggest bugbear here is the taxation of used vehicle sales. If I sell my vehicle privately, why the hell should the government get another slice? If bought and sold a few times, the revenue cost is outrageous!

This is standard for any significantly tangible asset. When a company that uses expensive equipment (e.g., front end loaders, printing equipment, refrigeration units, etc.) buys used equipment the transaction attracts taxation.

Most things in a thrift store, like The Salvation Army, including used items, are taxable.

https://www2.gov.bc.ca/assets/gov/t...-clubs-charitable-organizations-societies.pdf

 

[richrootes]

I'm not sure where these stories of huge commissions for renewals come from. I don't work in the insurance industry, but I work with some people who do. Commissions vary, but do not approach $600. You might be referring to the Global News story that said

"Global News obtained a copy of the broker remuneration plan for 2019 that shows a fee structure ranging from the 3.11 per cent base premium for drivers with no discount to 19.93 per cent for drivers with the highest safe driver discount."

https://globalnews.ca/news/4823459/...n-when-safest-drivers-get-optional-insurance/

Notice that the 19% level is for people who have the 43% safe driver discount. So on a $1,000 policy the commission would be $190. That same $190 would comprise a smaller percentage commission for people who receive no safe driver discount because the same coverage would cost much more.



Yes, that is common practice in any province where I have bought insurance. ICBC doesn't pay anything for that. The insurance agency pays an employee to sell the insurance at dealerships. The insurance agency bears the cost of the service. They do it because they can get lots of standard commissions by being the exclusive agency at the dealership.



This is standard for any significantly tangible asset. When a company that uses expensive equipment (e.g., front end loaders, printing equipment, refrigeration units, etc.) buys used equipment the transaction attracts taxation.

Most things in a thrift store, like The Salvation Army, including used items, are taxable.

https://www2.gov.bc.ca/assets/gov/t...-clubs-charitable-organizations-societies.pdf

Thanks, Mexi

So from what you’re saying, the Autoplan agents would be earning over $400 from my simple renewal (maximum discount) every year, which is quite outrageous

I accept your final point about assets, but I am talking about private ownership - it’s not really on to tax and tax the same vehicle on sale after sale

Cheers!

 

[MexiCanuck]

Thanks, Mexi

So from what you’re saying, the Autoplan agents would be earning over $400 from my simple renewal (maximum discount) every year, which is quite outrageous

I don’t know what they would get from your renewal. Remember, the commission on basic insurance is very low. The maximum commission rate applies only to the optional portion and only to the top rated drivers.

Every time you renew basic insurance the broker gets $13.72. For new insurance plans the broker gets $14.83 in commission.

Because there is competition with other insurance companies on optional insurance, ICBC pays brokers an average of around 15 per cent on a renewal or new plan. In the case of a $800 optional insurance bill, brokers can earn $120.

Note that the $13.72, $14.83, and $120 don’t go to the person behind the desk. They go to that person’s employer; the person who owns the business, rents the office space, pays the business taxes, etc.

And the employer pays for liability insurance. Yes, insurance agencies get sued for selling people “wrong” insurance. (You should have advised me to take $5M liability insurance because I live near a hospital. Now I have seriously injured a surgeon and my $2M third-party liability insurance is insufficient.)

I have no idea how much it costs to operate an insurance office, so I have no idea what a reasonable commission rate is. I’m still shocked when I get a bill from an electrician or plumber.

 

[richrootes]

I don’t know what they would get from your renewal. Remember, the commission on basic insurance is very low. The maximum commission rate applies only to the optional portion and only to the top rated drivers.

Every time you renew basic insurance the broker gets $13.72. For new insurance plans the broker gets $14.83 in commission.

Because there is competition with other insurance companies on optional insurance, ICBC pays brokers an average of around 15 per cent on a renewal or new plan. In the case of a $800 optional insurance bill, brokers can earn $120.

Note that the $13.72, $14.83, and $120 don’t go to the person behind the desk. They go to that person’s employer; the person who owns the business, rents the office space, pays the business taxes, etc.

And the employer pays for liability insurance. Yes, insurance agencies get sued for selling people “wrong” insurance. (You should have advised me to take $5M liability insurance because I live near a hospital. Now I have seriously injured a surgeon and my $2M third-party liability insurance is insufficient.)

I have no idea how much it costs to operate an insurance office, so I have no idea what a reasonable commission rate is. I’m still shocked when I get a bill from an electrician or plumber.

I see

But my argument is that if I were permitted to renew online, there would be no need for that expensive office

One other thing that confuses me - are you saying the broker earns more commission from selling a policy to a safe or experienced driver than an inexperienced one, where presumably the premium would be higher?

Anyway, as much as I support ICBC, I fear nothing will change until there is some competition - though I hope I’m wrong

Cheers

 

[Wyman]

ICBC is a profit seeking monopoly that gouges BC drivers. It's a dumpster fire that needs to die off and allow new vendors to fill the space and provide more competitive rates.
.

 

[pandap]

There's no fee to cancel and they'll even refund you the difference. If you have a BCAA membership the membership fees paid for itself. I got a ~$180 discount and membership fee is only $50 a year.

are you sure?
I did recently cancelled an insurance policy and there was a $30 charge. But I cancelled the whole thing though, not just the optionals

 

[pandap]

has anyone actually tried this:

InsureMyTesla

It doesn't take my postal code, maybe it's not available for BC?

I keep reading news that tesla has their own insurance and they are about to get even better pending an acquirstion or something.

 

[hiener]

*The InsureMyTesla program is powered by Aviva. This program is administered by Aviva Agency Services Inc., who distributes insurance products underwritten by S&Y Insurance Company and Traders General Insurance Company. Aviva Agency Services Inc., S&Y Insurance Company and Traders General Insurance Company are wholly-owned subsidiaries of Aviva Canada Inc. Auto insurance is only available in the provinces where private auto insurance is sold; not available in British Columbia, Manitoba or Saskatchewan. Tesla is not an insurance company or agent. The content on this website is for information purposes only. For exact terms, conditions, restrictions and limitations, please refer to your policy wording. Aviva and the Aviva logo are trademarks used under licence by the licensor.

 

[525SNAP]

are you sure?
I did recently cancelled an insurance policy and there was a $30 charge. But I cancelled the whole thing though, not just the optionals

Yes I am sure. I cancelled the optionals from ICBC when I went back to BCAA and got their optionals instead. I just got a cheque in the mail from ICBC for $103.

 

[pandap]

*The InsureMyTesla program is powered by Aviva. This program is administered by Aviva Agency Services Inc., who distributes insurance products underwritten by S&Y Insurance Company and Traders General Insurance Company. Aviva Agency Services Inc., S&Y Insurance Company and Traders General Insurance Company are wholly-owned subsidiaries of Aviva Canada Inc. Auto insurance is only available in the provinces where private auto insurance is sold; not available in British Columbia, Manitoba or Saskatchewan. Tesla is not an insurance company or agent. The content on this website is for information purposes only. For exact terms, conditions, restrictions and limitations, please refer to your policy wording. Aviva and the Aviva logo are trademarks used under licence by the licensor.

I must be blind lol still curious to see for people in provinces where this is available if they are any better/how Good they are but I guess I won't get it in a bc thread and im im l to create a new one

 

[reeeza01]

So what did you end up doing? Has anyone tried Canadian Direct Insurance?

My delivery is on Monday and NVR plan sounds pretty good for a $65k car being paid by credit line...

 

[hiener]

Canadian direct is Belair Insurance

 

[525SNAP]

Canadian direct is Belair Insurance

Sorry super off topic but I found you randomly looking at plugshare LOL

 

[reeeza01]

So what did you end up doing? Has anyone tried Canadian Direct Insurance?

My delivery is on Monday and NVR plan sounds pretty good for a $65k car being paid by credit line...

So I just got a quote from BCAA and it's $2500 annually compared to $3000 from ICBC. Plus you get 10% off the additional insurances if you take your home insurance to them as well.

 

[fidodido]

I know this is old thread, but I wanted to revisit it for new changes coming to ICBC.

Did BCAA increase their rate (optional car insurance) lately? When I got my BCAA insurance last year, it was only $1107.97 with the replacement cost of $70.63. For this year, when I went through the quoting (I couldn't find a renewal process), it comes out to $1862.10 (including the replacement cost of $268.76). Can anyone chime in on their BCAA rates?

I might get new ICBC rate after September, and see if ICBC is cheaper than BCAA.

 

[Paul Carter]

I just did the estimate for my P3D coming up for renewal next month and my quote for basic went down by a whole three bucks, yup only $ 3 down. Got the maximum -43% discount (20 years safe driving). $1,265 vs last year $ 1,268.