Yellowknife (July 14/03) - Car insurance is going up and that has insurance companies wondering if a government system is the way to go.

"The way things are going, if prices don't decrease sooner or later people will drive without insurance because it's too expensive," said Greg Prescott, owner and operator of The Co-operators office in Yellowknife.

That possibility has Todd Schwindt thinking a government-run insurance system would be better for the North.

"The Northwest Territories and Nunavut should be looking at a government system as fast as they can," said Schwindt who is with Arctic Insurance Brokers Ltd., which has offices in Inuvik, Yellowknife and Iqaluit.

Schwindt said a government system is far superior because it is fairer and everybody shares the costs equally.

He said that translates to lower premiums.

Insurance rates have been going up because the stock market fell, catching insurance companies that invested drivers'premiums and found themselves paying out more on claims than they were earning.

The territorial government has not looked into changing the system, and isn't planning on doing so any time soon.

"We haven't had any talks on that matter. I've talked to my constituents and while the cost of living is an issue, car insurance hasn't been," said NWT finance minister Joe Handley.

He said the government has other priorities to deal with.

Over at Norland Agencies in Hay River, Mark Harris, an insurance consultant said regulating car insurance was the "question of the day. There are definitely some concerns"

In Fort Smith, Guy Coughlin of Coughlin & Co. Insurance Brokers, doesn't think going the government route is a good idea.

"The whole thing boils down to whether the elimination of competition is good," he said.

Coughlin said premiums going up can also be attributed to an increase in accident claims.

"People are making lots of claims. The whole thing is being overused unnecessarily," he said.

Jim Rivait of the Insurance Bureau of Canada doesn't think a government-run system in the NWT will work.

The bureau is a consumer information agency on car and home insurance.

They don't sell insurance.

He said with a population of only 40,000, it wouldn't be easy to spread the costs of insurance over so few people.

Rivait, who is the vice-president for the Prairies, NWT and Nunavut, added that while premiums will go down, you would pay somewhere else.

Prescott agreed, saying that in Saskatchewan, where car insurance is government-regulated, premiums are low but paying for a licence plate is about 10 times more expensive than here.

Amy Pond of Lakeshore Insurance Brokers Ltd. in Yellowknife said she wouldn't mind seeing a government system in the NWT. She isn't dissatisfied with the current system, but thinks a government system would also streamline the process.

"The process is very confusing especially for people who've come from a government run system. It's a three stop shopping process here. You have to get your drivers licence, then insurance and then plates, all in different places," she said.

Prescott feels that imagination and creativity in setting up an insurance policy is the key to keeping costs low, but the insurance councils aren't very open.

"If we can adjust features to the insurance policy we can create a better product for everybody," he said.

Insuring your truck

We asked insurance companies in NWT, Yukon, Saskatchewan, Alberta and British Columbia how much it would cost to insure a 2003 Ford F250 crew cab 4X4.

The cost covers collision ($500 deductible), a $1 million liability coverage and comprehensive coverage ($200-$300 deductible).

The prices range for a driver with no driving infractions and no claims to one with numerous infractions and one or more claims.

NWT (Norland Agency, Hay River)

$927-$1,580

Yukon (Holt Agencies Ltd.)

$953-$3,186

BC (ICBC autoplan, Fort St. John)

$1,934-$3,872

Alberta (Adanac Insurance Services Ltd., Red Deer)

$830-$5,000+

Saskatchewan (Eldstrom Insurance, Prince Albert)

This includes licence plates

$1,093-$1,197 (plus possible surcharges depending on driving convictions)