“Accidents happen. That’s what insurance is for.” is an overwhelmingly common attitude.”
Just typing those words made my skin crawl.
Is insurance “for accidents?” Or does insurance actually cause crashes by removing driver accountability?
Consider the impact of the “you break it, you buy it” sign in a store displaying expensive, fragile merchandise. You become super conscious about not bumping into a display. A loose jacket or handbag is pulled in close to ensure nothing is knocked over.
Your 9 year old son waits at the door. Or at the very least you are holding his hand, keeping him very close to you.
What if you had to purchase breakage insurance to enter the store? If you or your son breaks something, the insurance company pays the store for the broken item.
You would no longer be “super conscious.”
Your mind would be free to wander as you browse, perhaps thinking about what to make for dinner.
Your 9 year old would be free to roam, picking up and playing with whatever fragile items he comes across.
You might pull out your cell phone to have a telephone discussion, or check your text messages.
What will happen to the frequency of broken merchandise?
It’s ok, though. The store’s losses are compensated by the insurance company. The insurance company collects enough premiums to pay that compensation.
But you have to pay the premium.
And that premium will increase as the level of carelessness and number of broken items increases.
It’s not hard to make it through the store without breaking anything. Heck, it’s easy. You just maintain your focused attention on what you are doing.
Take away that focused attention, though, and “accidents happen.”
Breakage insurance removes your accountability. It results in a lower level of care. More items break. It’s not a stretch to say that the breakage insurance actually causes breakages.
What is the solution to ICBC’s rate hike?
It’s not hard to make it from A to B on our roadways without crashing your car, either. Heck, it’s easy.
You just maintain your focused attention on what you are doing.
Similarly, liability insurance removes accountability and causes crashes.
Liability insurance also protects your victims if you don’t have enough assets to pay fair compensation for the damage you cause.
How do we maintain victim protection while increasing accountability?
A steep deductible and/or other consequences that are stiff enough that we go into the cautious “you break it, you buy it” mode.
What if an absent-minded driver who crashes into the back of a stopped vehicle had to reach into their pocket and pay the first $5,000.00 of their victim’s losses?
And spend a weekend attending a road safety awareness program.
I say that’s a sure-fire, guaranteed way to reduce crashes. I’d bet my house on it.
Reduced crashes means reduced insurance premiums to pay for those crashes. This is the solution to ICBC’s rate hike – our ICBC premiums will go down instead of up.
Are you willing to become accountable for your driving behaviour?
Given the option, would you choose:
- to pay the increased ICBC premium in the range of $130.00 annually, or
- pay a reduced premium but take on personal accountability.
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