Here's some straight up facts about Government vs Private Auto Insurance..
First of all, all insurance providers already run within a strict framework of provincial laws that are supervised by a number of government agencies, like rate review boards and both federal and provincial regulators.
The average cost to establish a government-run insurance company by province would be $300-$500 million - yikes! Not only would there be these enormous start-up costs, but all government-run auto insurers in Canada have required taxpayer subsidies to bail them out.
With private auto insurance the rates reflect the true cost. Premiums in a competitive environment reflect the real cost of insuring a driver.
The government would offer static solutions for consumers, that would mean we lose out on multi-vehicle discounts and the like.
The private insurance industry in Canada employs almost 100,000 people, either directly or through its support of a broker workforce, that's big!
Insurance Bureau of Canada wants you to Get In the Know about Auto Insurance. By the way, anyone ever try to tell you a red car costs more in insurance? Well guess what, it has no impact on your car insurance premium - phew! Visit their website to learn more about auto insurance, what it means for you, and be prepared with real facts for your next office chat.
Disclosure: Although this post has generously been sponsored by Insurance Bureau of Canada, the opinions and language are all my own, and in no way do they reflect Insurance Bureau of Canada.