B.C. Conservatives plan to end no-fault insurance, leaked letter shows

A contentious debate over the future of driving in the province has erupted in the final stretch of the provincial election campaign, with Global News reporting that the British Columbia Conservatives plan to repeal the province’s no-fault auto insurance system. The policy direction came to light after a Victoria Buzz report detailed a leaked letter written by B.C. Conservative interim leader Lorne Doerkson. The document outlines sweeping overhauls to the public auto insurer, injecting insurance reform directly into the October 24, 2026 election battle.

According to CBC coverage, the leaked letter was released publicly by MoveUp, the union representing thousands of employees at the Insurance Corporation of B.C. (ICBC). Written on September 29, 2026, the correspondence was directed to the vice-president of the Insurance Bureau of Canada, along with the presidents of the Law Society of B.C., the Trial Lawyers Association of B.C., and the Canadian Bar Association. Doerkson wrote that a Conservative government would introduce legislation during its first year in office to replace the existing care model with a hybrid system, get out of the legal profession's business, and consider opening the auto insurance market to private competition.

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The current system, officially known as Enhanced Care, was introduced by the NDP government in 2021. The Toronto Star noted that NDP Leader David Eby implemented no-fault in response to what he described as a financial dumpster fire at ICBC featuring losses in the billions. Under Enhanced Care, people injured in crashes receive treatment, rehabilitation, and income-replacement benefits regardless of fault, but they are generally barred from suing other drivers for additional compensation. ICBC states that this care-based shift removed significant legal costs, saved approximately $1.5 billion, and allowed the public insurer to reduce basic rates by 15 percent initially, with basic rates frozen and unchanged since then through March 31, 2027.

Critics of the current structure, however, argue that it leaves victims of severe collisions without adequate recourse. Families affected by fatal or life-altering collisions have shared distressing accounts of strict payout limits that ignore broader liability coverage. Nicholas Peterson, first vice-president of the Trial Lawyers Association of B.C., stated via CBC that the system simply does not work and fails British Columbians. Doerkson echoed these concerns at an unrelated news conference in Vancouver, explaining that for those who have experienced catastrophic injuries, the program has not supported them well.

Political fallout over the leaked letter was immediate. Eby accused the Conservatives of pursuing a hidden agenda and a secret deal with trial lawyers, warning voters that abandoning no-fault would lead to a doubling of insurance rates. The NDP pointed to historical Ernst & Young studies comparing provincial insurance premiums to argue that hybrid jurisdictions such as Alberta and Ontario experience significantly higher costs than public no-fault provinces like British Columbia, Saskatchewan, and Manitoba. MoveUp also highlighted 2022 Ernst & Young data showing stark provincial variances, such as an annual average of $2,551 for an 18-year-old male driving a Honda Civic in B.C. Compared with $5,936 in Alberta.

The Conservatives pushed back against the NDP's claims, accusing Eby of inventing scare statistics. Doerkson maintained that no promises had been broken and that his proposed framework is designed to balance affordability with justice for accident victims.

Voters head to the polls on October 24, 2026, where the future of ICBC's operating structure, private market competition, and the legal rights of crash victims will face a definitive electoral test.