Public auto insurance
Encyclopedia
Public auto insurance is a government owned and operated system of automobile insurance operated in the Canadian provinces of British Columbia
British Columbia
British Columbia is the westernmost of Canada's provinces and is known for its natural beauty, as reflected in its Latin motto, Splendor sine occasu . Its name was chosen by Queen Victoria in 1858...

, Saskatchewan
Saskatchewan
Saskatchewan is a prairie province in Canada, which has an area of . Saskatchewan is bordered on the west by Alberta, on the north by the Northwest Territories, on the east by Manitoba, and on the south by the U.S. states of Montana and North Dakota....

, Manitoba
Manitoba
Manitoba is a Canadian prairie province with an area of . The province has over 110,000 lakes and has a largely continental climate because of its flat topography. Agriculture, mostly concentrated in the fertile southern and western parts of the province, is vital to the province's economy; other...

 and Quebec
Quebec
Quebec or is a province in east-central Canada. It is the only Canadian province with a predominantly French-speaking population and the only one whose sole official language is French at the provincial level....

. According to studies by the Consumers' Association of Canada, rates charged for auto insurance in these four provinces are lower than in provinces that use a private auto insurance system. In Quebec public auto insurance is limited to coverage of personal injuries while damage to property is covered by private insurers. Saskatchewan has the oldest public auto insurance system with Saskatchewan Government Insurance
Saskatchewan Government Insurance
Created in 1945, Saskatchewan Government Insurance is a provincial Crown corporation that has been developed over the years into two linked operations....

 being founded in 1945. Manitoba Public Insurance
Manitoba Public Insurance
Manitoba Public Insurance is a non-profit Crown corporation based in Manitoba that has provided basic public auto insurance since 1971....

 was created in 1971 followed by the Insurance Corporation of British Columbia
Insurance Corporation of British Columbia
The Insurance Corporation of British Columbia is a provincial crown corporation in British Columbia created in 1973 by the NDP government of British Columbia. The original purpose of ICBC was to provide universal public auto insurance in British Columbia...

 in 1973 and the Société de l'assurance automobile du Québec
Société de l'assurance automobile du Québec
The Société de l'assurance automobile du Québec or SAAQ , is a Quebec crown corporation responsible for licensing drivers and vehicles in the province and providing public auto insurance which insures all drivers, passengers, pedestrians, bicyclists and motorcyclists involved in road collisions...

 in 1977.

Other provinces have considered introducing a public auto insurance system. The Ontario New Democratic Party
Ontario New Democratic Party
The Ontario New Democratic Party or , formally known as New Democratic Party of Ontario, is a social democratic political party in Ontario, Canada. It is a provincial section of the federal New Democratic Party. It was formed in October 1961, a few months after the federal party. The ONDP had its...

 won the 1990 provincial election
Ontario general election, 1990
The Ontario general election of 1990 was held on September 6, 1990, to elect members of the 35th Legislative Assembly of the province of Ontario, Canada....

 on a platform that included public auto insurance. After assuming office, Premier Bob Rae
Bob Rae
Robert Keith "Bob" Rae, PC, OC, OOnt, QC, MP is a Canadian politician. He is the Member of Parliament for Toronto Centre and interim leader of the Liberal Party of Canada....

 appointed Peter Kormos
Peter Kormos
Peter Kormos is a politician in Ontario, Canada. A former lawyer, he was first elected as an Ontario New Democratic Party Member of Provincial Parliament to the Legislative Assembly of Ontario in the Welland constituency in a 1988 provincial by-election. He replaced veteran NDP legislator Mel...

, one of the most vocal proponents of public insurance, as the minister responsible for bringing forward the policy. With the onset of the recession, however, both business and labour groups expressed concern about layoffs and lost revenues. The government rejected the policy in 1991.

Public auto insurance has also been considered in New Brunswick
New Brunswick
New Brunswick is one of Canada's three Maritime provinces and is the only province in the federation that is constitutionally bilingual . The provincial capital is Fredericton and Saint John is the most populous city. Greater Moncton is the largest Census Metropolitan Area...

 after private insurance rates nearly doubled from 2003 to 2005, but was ultimately rejected by the provincial government. It was also an issue in Nova Scotia
Nova Scotia
Nova Scotia is one of Canada's three Maritime provinces and is the most populous province in Atlantic Canada. The name of the province is Latin for "New Scotland," but "Nova Scotia" is the recognized, English-language name of the province. The provincial capital is Halifax. Nova Scotia is the...

 during its 2003 provincial election
Nova Scotia general election, 2003
The 36th Nova Scotia general election was held on August 5, 2003 to elect members of the 59th House of Assembly of the Province of Nova Scotia, Canada...

 and remained in the platform of the official opposition, the Nova Scotia New Democratic Party
Nova Scotia New Democratic Party
The Nova Scotia New Democratic Party is a social-democratic provincial party in Nova Scotia, Canada. It is aligned with the federal New Democratic Party . Originally founded as the Co-operative Commonwealth Federation in 1932, it became the New Democratic Party in 1961. It became the governing...

 during the 2006 election campaign. However, it did not appear in the NDP platform in the 2009 campaign, and now that the NDP has formed a majority government, it seems unlikely that the party will keep its former promise to introduce a public insurance scheme. Public auto insurance was also under consideration by the Newfoundland and Labrador
Newfoundland and Labrador
Newfoundland and Labrador is the easternmost province of Canada. Situated in the country's Atlantic region, it incorporates the island of Newfoundland and mainland Labrador with a combined area of . As of April 2011, the province's estimated population is 508,400...

 Progressive Conservative
Progressive Conservative Party of Newfoundland and Labrador
For pre-1949 Conservative parties see Conservative parties in Newfoundland The Progressive Conservative Party of Newfoundland and Labrador is a centre-right provincial political party in Newfoundland and Labrador, Canada. Originally founded in 1949 the party has formed the Government of...

 government of Danny Williams
Danny Williams (politician)
Daniel E. "Danny" Williams, QC, MHA is a Canadian politician, businessman and lawyer who served as the ninth Premier of Newfoundland and Labrador between November 6, 2003, and December 3, 2010. Williams was born and raised in St. John's, Newfoundland and Labrador...

 in 2004 as a "last resort" when private insurance firms threatened to pull out of the province in response to legislation rolling back premiums.

See also

  • Saskatchewan Government Insurance
    Saskatchewan Government Insurance
    Created in 1945, Saskatchewan Government Insurance is a provincial Crown corporation that has been developed over the years into two linked operations....

  • Insurance Corporation of British Columbia
    Insurance Corporation of British Columbia
    The Insurance Corporation of British Columbia is a provincial crown corporation in British Columbia created in 1973 by the NDP government of British Columbia. The original purpose of ICBC was to provide universal public auto insurance in British Columbia...

  • Société de l'assurance automobile du Québec
    Société de l'assurance automobile du Québec
    The Société de l'assurance automobile du Québec or SAAQ , is a Quebec crown corporation responsible for licensing drivers and vehicles in the province and providing public auto insurance which insures all drivers, passengers, pedestrians, bicyclists and motorcyclists involved in road collisions...

  • Manitoba Public Insurance
    Manitoba Public Insurance
    Manitoba Public Insurance is a non-profit Crown corporation based in Manitoba that has provided basic public auto insurance since 1971....

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