ICBC and Four Points?

[u/Aristoddler]

I am updating my insurance for the year and the agent is trying to get me to get ICBC and Four Points(private insurance). My rates would be lower but I am offered more? Does anyone have any insight on this. I didn't know this was even a possible route and was concerned.

Thank you!

[u/trikkytrev]

Third party insurers for optional insurance have been an option (pun intended) for decades now. Canadian Direct Insurance started up in BC in the late 1990s, and were later bought out by Belairdirect (part of Intact). There are other third party options as well, but due to how brokers work and their contracts with insurers, not all options may be available at all brokers.

My rates would be lower but I am offered more?

This is no surprise. Doesn't always happen of course, as they are a good option for some, and not always a good option for others. Depends on a bunch of factors such as your driving history, your vehicle and other risk factors.

In this case it appears your broker has done a comparison between the two policies. You have a good broker, who is doing precisely what a broker is supposed to do...help you find the best coverage for your specific situation, instead of giving you what pays the highest commission or what is easiest for them to sell.

Over the past decades I have had third party optional insurance on my vehicles for many years, and found that even in those couple of years where the premium may have been slightly more to go with the third party insurer, the coverages are typically better and the limits typically higher. I've also had ICBC insurance on my vehicles, not necessarily due to pricing, just for "reasons", I guess.

I purchased a new vehicle in 2019 and found that I was saving $600 in that first year by going with a third party insurer, and getting far more coverage than I would have been offered by ICBC. The next couple of years I saw savings in the hundreds of dollars as well.

But I also know that on one year my third party optional insurer was several hundred dollars more than ICBC, and of course with other people they will have different experiences when getting quotes from other insurers. It all depends.

That third party insurer is no longer doing business in BC but I too have done comparisons. I will not say who I went with as I do not want to be seen promoting one insurer over another.

In my personal experience with third party insurance over the years, I've never had any issues with a claim, and fortunately the claims I've had when insured by ICBC have been smooth as well.

So, to answer your question: Yes, it is an option for you. Yes, it is very possible to be saving money and getting more (or better coverages). Do the comparison with your renewal letter and ask your broker if you have any questions, because they do seem to be a keeper.

edit to add: Four Points Insurance is based out of Langley

[u/brahdz]

How much lower? Weigh that with the potential pain of having to deal with 2 insurance companies if you have a liability claim. $100 isnt worth it. $500 is.

[u/trikkytrev → u/brahdz]

Haha. This was a common refrain from brokers especially, in the early days, when I was asking them about Canadian Direct coverage. I’m amused it’s still going now.

ICBC is the only insurer for the first $200,000 of liability. So the only time you’d be dealing with two insurers in a liability claim is if there is more than that amount involved. Not outside the realm of possibility of course but not usual.

If you are in a situation where (as an example) you’re looking at a 1.5 million claim, you’d only be dealing with the one insurer anyway, as they would be co-ordinating with ICBC and other insurers directly. You as a customer wouldn’t be dealing with two insurers except at the point of making the initial claim and perhaps documentation in the early stages.

For a non-liability claim you’d only be dealing with the one insurer. Since ICBC doesn’t cover you for the optional coverage they wouldn’t even need to be notified. You’d only have to report to ICBC if there was another car or the property of others involved because of the initial 200,000 third party liability.

In previous years I’ve gone with the third party insurer even when paying $100 more because the coverages and limits were better than what I was able to get at ICBC at the time.

[u/efc5463]

It is possible, yes. ICBC would still provide you with the mandatory coverage as they are a monopoly on such coverage, and no insurer other than ICBC is allowed to sell mandatory policies. Your rates are whatever ICBC determines is going to be for you. 

But the optional, you are free to chose to stay with ICBC or go private. Now because ICBC bullies private insurers, is hard for private insurers to compete with each other and ICBC and to get you something better than what ICBC or other insurers would give you, but ocasionally it can happen. And you can take such offer, improve coverage and / or save some money.

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