(NC) A new report examining the cost of auto insurance in Canada has found that drivers, no matter where they live in British Columbia, pay more for auto insurance than their neighbours in Alberta.

The report by the accounting firm MNP compared the premiums drivers are paying in both provinces and found that Alberta premiums are lower. For example, the report compared the premium a married couple and their teenage son pay to insure a 2012 Honda Civic in each province. No driver in the family has ever had an accident, and the family members mainly use their car to commute to work. In Kelowna, they would pay $1,688 every year to insure their car. If they lived in Red Deer, Alberta, they would pay just $1,125.

But it’s not just Alberta drivers that pay lower premiums. BC drivers pay more for auto insurance than drivers in any other province in Canada.

A big difference between auto insurance in BC and other Canadian provinces boils down to one simple factor – choice. While most Canadians are able to shop around for their auto insurance needs, British Columbians must purchase auto insurance from Insurance Corporation of British Columbia (ICBC), which has raised premiums by 42 per cent since 2013.

According to its own annual financial reporting, ICBC is forecasting that it will need to raise more revenue from premiums in the years ahead. That works out to an increase of $387 over the next three years, driving the estimated average basic auto insurance premium to $2,085 annually.

It’s no wonder 82 per cent of British Columbians are in favour of allowing more competition in the BC auto insurance market, according to a 2019 poll commissioned by the Insurance Bureau of Canada.

Insurers operating in other provinces have developed innovations and cost efficiencies that can help improve the affordability of auto insurance in BC. These include first-accident forgiveness, usage-based insurance, replacement-cost coverage and roadside assistance.

In contrast, government auto insurance provides a one-size-fits-all basic auto policy with fixed deductibles and no discounts for multi-vehicle policies, policy bundling, loyalty or group programs.

Competition provides a powerful incentive for any company to deliver the best product at the best possible price. Auto insurance is no exception to this rule.

Attention Editors: This content is reserved for distribution in British Columbia only.