[1] Arguments over public versus private provision of auto insurance often revolve around price and treatment of claimants.
However, those in favour of public insurance provision argue that, since private companies would also have to make profits for their owners, a non-profit entity would be more likely to have low premiums.
[2] Second, mandated minimum levels of coverage and benefits can vary widely, even between provinces that use similar insurance models.
Lastly, comparisons with other countries – and the United States in particular – are difficult since Canada's public healthcare system covers medical costs that would otherwise often be borne by auto insurers.
As would be expected, these complicating factors have resulted in various comparative studies of premiums across the country reaching different conclusions.
While it was initially opposed by the opposition Social Credit Party, ICBC became popular with the public and its continued existence has been supported by the government of the day ever since.
Manitoba Public Insurance (MPI) was created in 1971 by an NDP government under the leadership of Edward Schreyer.
[13] In 1978, the Parti Québécois government of René Lévesque created the Régie de l'assurance automobile du Québec (RAAQ).
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.
Public auto insurance was also under consideration by the Newfoundland and Labrador Progressive Conservative government of Danny Williams in 2004 as a "last resort" when private insurance firms threatened to pull out of the province in response to legislation rolling back premiums.