FORT ST. JOHN, B.C. – If you own a high-end luxury car, you may be out of luck when it comes to insuring it. The B.C. government has announced that they will not be insuring high-end luxury cars anymore.
Minister of Transportation and Infrastructure Todd Stone announced today that government is moving forward to no longer insure the high-end luxury car rate class (cars worth $150,000 and over) so that “the broader ratepayer is not subsidizing these cars.”
The government says the high-end car market is growing, with 3,000 insured this past year.
“The government will get to work on the necessary legislative changes to have ICBC no longer insure these high-end luxury cars. This means that in the future, private owners of these cars will have to purchase their insurance through private insurance. Drivers will still be required to carry a certain amount of coverage to protect themselves and other drivers, but it will not be provided through ICBC’s public insurance plan.”
While the government starts this process, they will immediately take steps so high-end luxury car owners will pay more than double for their basic insurance and ensure their premiums fully cover all costs of any repairs. These temporary changes will be formally brought in as soon as possible.
“Right now, whether a person drives a $15,000 Honda Civic or a $300,000 Ferrari – their basic insurance premiums are similar. If owners of high-end luxury cars can afford a high-priced car, they certainly can afford to pay higher premiums to cover the real cost for their repairs,” said Stone. “This policy needs to be fair for all British Columbian ratepayers, and we want to ensure that the regular everyday driver is not paying for the additional repair costs of these cars through their insurance rate.
When these more expensive cars get into a crash, it costs approximately six times more to fix them because they are rare, and they are built using high-end technologies and more expensive materials. However, until now, the owner has paid similar rates for their basic insurance.”
The B.C. government and ICBC will start working on necessary steps forward and policy changes right away.