Public Auto Insurance in Canada

Public auto insurance is a government owned and operated method of auto insurance operated within the Canadian provinces of British Columbia, Saskatchewan, Manitoba and Quebec. Relating to studies of the Consumers' Association of Canada, rates charged up for vehicle insurance in these four provinces are considerably cheaper when compared to provinces that make use of an exclusive vehicle insurance system.

A latest study completed by the Fraser Institute and released last year realized that the highest car insurance premiums in Canada were paid in Quebec, British Columbia, Manitoba and Saskatchewan, of which 3 are functioning with public insurance coverage.

In Quebec public vehicle insurance is restrained to protection of personal injuries although harm to property is covered by private insurers. Saskatchewan has the first public automobile insurance method with Saskatchewan Government Insurance being launched in 1945. Manitoba Public Insurance got started in 1971 then followed because of the Insurance Corporation of British Columbia in 1973 as well as the Société de l'assurance automobile du Québec in 1977.


Other provinces have contemplated launching a public auto insurance system. The Ontario New Democratic Party won the 1990 provincial election on a platform that included public vehicle insurance. After assuming office, Premier Bob Rae appointed Peter Kormos, one of the most vocal advocates of public insurance, due to the fact minister responsible for carrying forward the policy.


Because of the economic depression, however, both business and labor groups expressed fear about layoffs and lost revenues. The governing administration disapproved the plan in 1991.

Public automotive insurance has additionally been considered in New Brunswick after private insurance rates nearly went twofold during 2003 to 2005, but was subsequently terminated because of the provincial government.

It has also been a concern in Nova Scotia through its 2003 provincial election and continued to be when you look at the platform associated with the official opposition, the Nova Scotia New Democratic Party during the 2006 election campaign.

However, it failed to come out in the NDP platform when you look at the 2009 campaign, and today that the NDP has developed a majority government, it seems unlikely that the party will keep its former vow to introduce a public insurance scheme.

Public automotive insurance was additionally at issue by the Newfoundland and Labrador Progressive Conservative government of Danny Williams in 2004 as a "last option" as soon as private insurance firms threatened to withdraw from the province in reaction to legislation rolling back premiums.

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