Public auto insurance

Public auto insurance is a government owned and operated system of automobile insurance operated in the Canadian provinces of British Columbia, Saskatchewan, Manitoba and Quebec.

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. A study completed by the Fraser Institute released in 2011 concluded that the highest auto insurance rates in Canada were paid in Ontario, British Columbia, Saskatchewan, and Manitoba, of which the last three are operating with public insurance coverage. 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 being founded in 1945. Manitoba Public Insurance was created in 1971 followed by the Insurance Corporation of British Columbia in 1973 and the Société de l'assurance automobile du Québec in 1977.

Other provinces have considered introducing a public auto insurance system. The Ontario New Democratic Party won the 1990 provincial election on a platform that included public auto insurance. After assuming office, Premier Bob Rae appointed Peter Kormos, 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 dropped the policy in 1991, which was one reason for its loss of power in 1995.

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