Don't get me wrong, I think ICBC (the Insurance Corporation of British Columbia) is a Godsend and I'll forever be grateful to Dave Barrett who's Government established it in 1973.
Since then, while other parts of the nation were/are getting robbed by private auto insurance conglomerates, we in British Columbia have enjoyed fair rates.
I just got back from re-insuring my 2006 Saturn Vue. We changed our policy slightly and removed the Replacement option which was costing us $180 extra. We kept our deductable at $2500.
Our nice insurance lady told us we could have a $1000 deductable for only $60 more. I said "No Thanks" I'll continue with the $2500.
She couldn't believe my decision. She said "Your not willing to spend $60 to save $1500?"
For a moment I thought about explaining myself but then said "Leave it at $2500". She wasn't finished. She explained that I could have an at fault accident and still have no increase in my insurance premium. I said "No thanks, let's keep it at $2500".
In her mind I was nuts. In my mind I saved $60 but more importantly I prevented ICBC from acquiring $60 for giving me nothing.
Both my wife and I have not had an accident in over 25 years. Luck, fate, or chance has nothing to do with that. It's because we are good drivers, plain and simple.
This particular vehicle gets driven less than 10000km per year. The chances of either of us having an accident in the next year are probably 1 in 100 or less.
Yet the nice insurance lady was talking as if we were definitely going to have an accident. This is where our thinking differed.
Insurance people want to take your money and give you nothing in return. Sure once in a while someone makes a claim and they have to give some of it up. But mostly they get money for nothing.
I don't have any fire and theft insurance on my belongings in my Condo. Why? Because the chance of a fire is so slim that it doesn't merit the $400 the insurance company wants (for giving me nothing).
Think about it. What are the chances of your house burning down? In Kelowna maybe there are 50,000 residences. In a given year how many burn down? One hundred maybe at most? Probably a lot less than that. And half of those burn because of poor maintenance.
So you are giving insurance companies hundreds if not thousands of dollars for the 1 in 500 chance that your house will burn down.
Yeah I know, "peace of mind". I don't advocate an uninsured house. But I am stating that is a scam that preys on our most basic fears. Insurance Companies know that and feed on it. Feed like Pigs at a Trough.
But back to auto insurance. I have no collision insurance on my Beloved Mustang Convertible. So when I get maybe a bit enthusistic in my driving I think a bit. If I crash this car I can't replace it. And you know what? I drive more carefully then.
If everyone's deductable was $2500 or more do you think people would drive more carefully?
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It Only Hurts Because It's True
