Why Is ICBC So Expensive?

If you have car insurance, you may have to pay some monthly or yearly amount to that insurance company. And how much you will pay for your car insurance will depend on the location of your residence. For example, only in Canada, different provinces charge differently for car insurance.

Sometimes, the Canadian residents may need to pay $500-$1000 on average for the annual insurance coverage. But this payment amount can vary from province to province.

In this writing, we will talk about why ICBC is so expensive compared to others. Keep reading this article to learn more.

Why is ICBC so expensive?

ICBC always has a better service with better insurance rates. Even though the cost is much higher than the other insurance company, they always handle their auto accident cases swiftly, and the service is also very fast. There is plenty of reason why they cost a bit more.

But they also have a plan that is called ‘No fault’ accident. This usually occurs when both drivers are equally responsible for the accident. In such cases, the money just changes the hand. Because the insurance company does not pay anything here, and they have to pay for their own damages.

It is just like you will repair their damages, and they will repair your damage. This is how the ICBC regulates their work in some cases. For these reasons, in some cases, ICBC costs a little bit more money than regular insurance.

So let’s have an idea about the approximate costs.

Average auto insurance costs?

The average figure for the auto insurance calculation is quite easy. When you need an estimated cost for your auto insurance, you can divide the total premium figure by the total number of a motor vehicle. Then the result would be your insurance payment.

All provinces or states do not have the same amount of motor vehicles. That is why the premium or insurance payment also can differ. For example, suppose Alberta has almost 640,470,499 in premium, and the total number of the vehicle is 2,000,000.

So if we divide this figure, then the result would be 320.235. So your average auto insurance premium would be 320.235.

This is how the rate of insurance payment varies from province to province. Below are given an average auto insurance premium for different provinces of Canada.

• British Columbia: $1,932

• Saskatchewan: $1,227

• Nova Scotia: $872

• New Brunswick: $857

• Prince Edward Island: $820

• Ontario: $1,510

• Alberta: $1,320

• Quebec: $718

• Newfoundland and Labrador: $1,169

• Manitoba: $1,081 in 2017

Source: IBC BAC statistic of 2017-18

Insurance cost determination:

There are certain factors to determine your insurance payment. In some cases, it is so important for you to get an idea about the insurance payment. When you have your insurance payment idea, it would be much easier to proceed with the next step.

So, below are some points that will help you to determine the insurance cost.

· Get an estimate:

Nowadays, it becomes so easier to get an estimate of your insurance cost. In order to get the estimate of your insurance cost, you need the necessary documents. These documents may include your valid driving license, date of birth certificate, and so on.

With this document, you can seek help from an insurance adjuster or ICBC Calculator online. Also, you can visit the ICBC insurance interactive tool to get an estimated insurance cost. If your driving license needs to be renewed, you need to renew it first to apply for your insurance estimate cost.

· Driver and vehicle factors:

The next thing that will help you calculate your insurance premium’s cost is the driver and vehicle risks. This may include your driving experience, your previous car crash or accident history, and so on. When the risk is higher, you also need to pay the insurance company more.

If you or your car have any previous accident history, it will also cost you more money for the insurance premium. Despite having all these risks, if you have a safe driving experience and a skilled driver, it may help you reduce your insurance premium.

· Your living location:

In some cases, your living location plays a good role in your insurance premium. Because insurance payment is not fixed, it can vary from province to province. Some province has higher risks of accident and messy traffic. On the other hand, some do not have these risks. So, the cost changes depending on your geographic location.

· Usage of your car:

The cost will also depend on how you use your car. For example, some people use their car for family usage, and some use it for business purposes. So, this is how the cost also changes according to your usage. When you use your car for business purposes, the cost will normally increase than the regular costs.

The bottom line:

Determining the cost of an auto insurance company depends on a lot of factors. Sometimes, it is also so difficult for a general person to determine his own insurance premium. In such a case, they can seek help from any professional.

Nowadays, everything can be found on the ICBC website, which helps a person get an estimated cost. Hopefully, now you have known why ICBC is so expensive than the regular insurance from this writing.