Thursday, August 13, 2009

The competition void ICBC edition

Well,an interesting story in the Times Colonist newspaper about ICBC......

At first glance that story might seem dull but let me fill in a few details........

ICBC for the second year in a row have lowered prices,last year they lowered and raised prices,last year they lowered prices on optional insurance raised prices on mandatory insurance and this year they are lowering optional insurance rates by another 3%......So why am I grumbling about this?

Here`s the deal,ICBC keeps slowly raising mandatory insurance costs,at the same time they keep lowering optional insurances costs,well as you know they have ZERO competition on mandatory insurance but plenty of competition on optional insurance,so what we have going on is a captive market subsidizing competition against private insurers who have no ability to compete with ICBC on mandatory insurance.

So don`t expect mandatory insurance to go down anytime soon,although,you will be getting a car levy in the range of 100$ to 300$ coming this fall.

Here is the link

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