As students prepare to head back to school next week, some say they’re being unfairly burdened by one of their expenses: vehicle insurance.
ICBC brought in its Enhanced Care insurance scheme, better known as no-fault insurance, in May 2021, pledging to reduce costs for drivers.
And while most vehicle owners have seen rates go down, that’s not the case for new an inexperienced drivers like Surrey 18-year-old Samuel Hofstad, who starts at Simon Fraser University next week.
Hofstad said the distance to the university’s Burnaby campus makes commuting by transit unrealistic.
But amid tuition, insurance, gas and other pressures, he said the cost of going by car is becoming a problem as well.
“I’ve been working since I was 15 years old … I’m trying to save my money but with the car payments and the cost of gas, soon it’s going to outweigh what I’m making,” he said.
“It’s just outrageous, the insurance cost. You have to really put yourself in the kids’ shoes, and think how can people be affording this.”
The cost is high enough that Hofstad’s parents have stepped in to help.
But that comes with increased costs of its own. His father, Martin Hofstad, said adding his son to the family’s car insurance for a 15-year-old vehicle increased the premium by 67 per cent.
“Balancing that and university payments, it’s quite onerous and it’s excessive, I feel,” he said.
“My message would be to try and make it more fair and reasonable for the children — in my case I can help pay the insurance, but I am sure many children that age and going to university can’t get that help from their parents, and then it’s a real struggle on them.”
ICBC maintains that its rates under the no-fault system are among the lowest in Canada, including for inexperienced drivers.
But it said there is a reason new drivers pay more — and it has nothing to do with age.
“We know that inexperienced drivers are at a greater risk of getting into a crash. In many cases these crashes can be more severe. So their insurance premium is reflective of that,” ICBC spokesperson Greg Harper told Global News.
“The good news, as they gain experience, if they drive safely, if they’re not involved in any crashes that are their fault, if they continue to do this they will save on their insurance premium year after year.”
B.C.’s official opposition BC United says insurance costs for new drivers are simply too high given the current cost of living crisis, with inflation affecting everything from the price of gas to the price of food to housing costs.
“This is hurting families when they need it the most,” Transportation Critic Trevor Halford said.
“It’s a huge squeeze right now. These are kids that are getting to school, getting to work, getting to soccer, getting to hockey, and right now who is absorbing that cost? They are, their parents are, and it’s absolutely unacceptable.”
ICBC says parents with kids nearing driving age should speak to their broker to understand the best policy for them when it comes to both cost and coverage.
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