Alyssa Lane
Auto insurance in British Columbia is compulsory for all drivers. The Insurance Corporation of British Columbia (ICBC), a provincial crown corporation, offers basic insurance to all drivers. This includes third-party liability insurance, underinsured motorist coverage, and accident benefits. In addition to the minimum coverage, drivers can purchase optional coverage from ICBC or private insurance companies. For example, while the mandatory third-party liability coverage comes with a limit of $200,000, drivers can raise this amount to up to $5 million. Private car insurance companies in BC often provide better rates for optional coverages compared to ICBC.
| Characteristics | Values |
|---|---|
| Who provides auto insurance in BC | ICBC (Insurance Corporation of British Columbia) |
| Is auto insurance mandatory in BC | Yes |
| What does the basic insurance cover | Accident benefits, third-party liability coverage, under-insured motorist protection, hit-and-run and uninsured motorist protection, and inverse liability coverage |
| What is the minimum third-party liability coverage | $200,000 |
| Is private insurance available | Yes |
| What are the benefits of private insurance | More flexibility with lower premiums vs higher deductibles, covers property damage and veterinary bills |
| What are the disadvantages of private insurance | More paperwork, two separate bills, dealing with two insurers after an accident |
| What are the factors that affect insurance rates in BC | Driver's statistics (age, gender), location, driving record, car make and model, driving activity, insurance coverage, applicable discounts |
What You'll Learn
ICBC Basic Autoplan Insurance
In addition to third-party liability and underinsured motorist protection, ICBC Basic Autoplan Insurance also covers accident benefits. This means that if you are injured in a crash, ICBC will provide unlimited medical care and recovery benefits for treatments such as physiotherapy, chiropractic care, dental care, counselling, and more. There is also coverage for lost wages, regardless of who was responsible for the crash.
While ICBC Basic Autoplan Insurance is mandatory for all drivers in BC, it is important to note that it only provides a basic level of coverage. For more comprehensive protection, drivers can choose to purchase additional optional coverage offered by ICBC and other private insurers. These optional coverages may include collision insurance, comprehensive insurance, and specified perils, among others. By purchasing additional coverage, drivers can ensure that they have the peace of mind and full protection they desire.
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Mandatory and optional coverage
Mandatory Coverage
In British Columbia, car insurance is compulsory for all drivers. The Insurance Corporation of British Columbia (ICBC), a provincial crown corporation, offers basic insurance to all drivers. This includes third-party liability insurance, underinsured motorist coverage, and accident benefits. The mandatory third-party liability coverage comes with a minimum limit of $200,000, but drivers can increase this to up to $5 million.
Accident benefits cover the cost of injury treatment, medical bills, and loss of wages or benefits. Underinsured motorist protection covers the cost when the person who caused the crash does not have enough insurance to cover the losses. Hit-and-run and uninsured motorist protection is also included in the basic plan, with a limit of $200,000. Inverse liability coverage is also included and comes into effect in parts of Canada and the US where local laws prohibit recovering losses from the at-fault driver.
Optional Coverage
In addition to the mandatory basic coverage, drivers can purchase optional coverage from ICBC or private insurance companies. Private car insurance companies in BC often provide better rates for optional coverages compared to ICBC.
Optional coverages include collision insurance, which protects your car in the event of a collision with another vehicle or object, regardless of fault. Comprehensive insurance is another optional coverage, protecting against external events such as theft, riots, fire, vandalism, and natural disasters.
Specified perils coverage is another option, which protects against specific perils selected by the policyholder, such as theft, fire, riots, damage from lightning, hail, flooding, wind, explosions, earthquakes, and aircraft crash damage. All perils coverage combines collision and comprehensive coverage and also provides protection against theft by an employee or someone living in your home.
Emergency roadside assistance is also an optional coverage, helping drivers get back on the road quickly if they experience issues such as flat tires, towing needs, or an empty gas tank.
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Third-party liability insurance
In BC, the minimum third-party liability coverage is $200,000, which is the same as most other Canadian provinces and territories, except for Quebec, where the minimum is $50,000, and Nova Scotia, where it is $500,000. However, drivers can increase their coverage to up to $5 million to provide added protection. This is recommended if you frequently carpool, use your vehicle for commercial purposes, live in a metropolitan area, or regularly drive across the Canada-US border.
While third-party liability insurance is a mandatory component of auto insurance, drivers in BC have the option to purchase additional coverage from ICBC or private insurance companies. This additional coverage can provide further protection and peace of mind in the event of an accident.
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Accident benefits
In addition to medical and rehabilitation costs, accident benefits may also pay for home and lifestyle modifications, such as installing a ramp inside or outside your home or a lift on your vehicle. Accident benefits also provide a portion of income replacement if you are unable to work as a result of the accident. The weekly amount you receive is calculated as 75% of your weekly income, up to a maximum of $740 per week for accidents occurring on or after April 1, 2019, and $300 per week for accidents before this date.
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Private insurance
Some of the unique benefits of private insurance are:
- Private insurance is often more flexible regarding lower premiums versus higher deductibles. Sometimes, this coverage costs less than adding more ICBC coverage.
- Private insurance offers some compensation that is not available through the basic ICBC plan. They cover everything from property damage, such as a laptop, to the cost of your injured pet's veterinary bills.
However, there are some disadvantages to private car insurance coverage:
- Two insurers mean twice the paperwork, and private insurance policies usually involve more administration. It also means you'll have to pay two separate bills for insurance every month.
- The most significant disadvantage is having to deal with the two insurers after an accident. You have to inform both insurers after an accident occurs, even if you do not file a claim with one carrier, causing you additional stress.
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Frequently asked questions
The minimum coverage in British Columbia is $200,000 in third-party liability insurance, underinsured motorist protection, medical coverage capped at $150,000 per person, and hit-and-run coverage with a maximum of $200,000.
Yes, auto insurance is mandatory in British Columbia. You can purchase the mandatory coverage from the Insurance Corporation of British Columbia (ICBC).
ICBC Basic Insurance is mandatory for all drivers in British Columbia and provides a basic level of coverage. Private Insurance is non-mandatory and offers additional coverage that can be purchased from private insurers or as an add-on to your ICBC basic policy. Private insurance often offers more flexibility with lower premiums and higher deductibles.
