Auto Insurance In British Columbia: One-Year Policy?

British Columbia has a government-run auto insurance system, with the Insurance Corporation of British Columbia (ICBC) providing mandatory basic coverage to all drivers in the province. This includes third-party liability coverage, accident benefits, uninsured motorist protection, and hit-and-run damage and injury coverage. While ICBC is the sole provider of mandatory basic auto insurance, drivers in British Columbia have the option to purchase additional coverage from private insurance companies. This includes collision coverage, comprehensive coverage, and specialised coverage for vehicles like ATVs.

Mandatory and optional insurance coverages

In British Columbia, auto insurance is mandatory and provided by the government-owned Insurance Corporation of British Columbia (ICBC). The mandatory basic coverage, also known as Basic Autoplan, includes:

• Third-party liability coverage of up to $200,000
• Accident benefits, which provide medical and rehabilitation expenses for you and your passengers in the event of a crash
• Basic vehicle damage protection of up to $200,000 when the other driver is responsible for the collision
• Enhanced accident benefits with no overall limit for medical care and income replacement benefits of up to $113,000 gross annual income
• Underinsured motorist protection of up to $1 million per insured person in case of a crash caused by a driver with insufficient insurance
• Inverse liability protection, which covers you in parts of Canada and the U.S. where local laws do not allow you to claim against the person who caused the accident

In addition to the mandatory basic coverage, ICBC offers a range of optional insurance packages and specialized coverage for luxury vehicles, occasional use, and special vehicles. Some of the common optional coverages include:

• Extended third-party liability, which allows you to increase your liability protection up to $5 million
• Rental vehicle coverage, which provides protection for rented vehicles
• New vehicle protection, which offers options to repair your car with new parts, replace it with a new model, or receive a cash payout after a crash
• Collision insurance, which covers damage caused by a collision or upset
• Comprehensive insurance, which protects against damage caused by weather, theft, and vandalism
• Unlisted driver protection, which extends coverage to drivers not listed on your policy

While ICBC is the sole provider of mandatory basic auto insurance in British Columbia, you can purchase additional or optional insurance from private insurance companies. It is recommended to consult with a local qualified insurance representative to stay up-to-date with the unique mandatory auto insurance requirements in British Columbia and ensure you have the appropriate coverage.

Average cost of insurance

The average cost of car insurance in British Columbia is high compared to other provinces in Canada. The base premium for basic insurance is $1,063, and drivers pay an average of $1,832 a year for car insurance. The Insurance Corporation of British Columbia (ICBC) provides the mandatory basic Autoplan insurance, which includes accident benefits, third-party liability, underinsured motorist protection, hit-and-run damage and injuries, and inverse liability protection.

The cost of car insurance in British Columbia depends on several factors, including your driving record, where you live, your vehicle, your age and driving experience, and your usage. For instance, insurance rates are higher in urban areas like Vancouver and Victoria, and younger and less experienced drivers pay more for car insurance.

In addition to the mandatory basic coverage, drivers in British Columbia can purchase optional auto insurance for more protection. Some common add-ons include collision coverage, comprehensive coverage, underinsured motorist protection, and rental vehicle coverage.

There are also ways to save money on car insurance in British Columbia. For example, maintaining a good driving record, choosing higher deductibles, bundling home and auto insurance, and taking advantage of discounts offered by ICBC and other private insurers can help lower your premiums.

Discounts

While the basic auto insurance system in British Columbia is publicly administered, private companies can compete to offer expanded optional coverage to drivers. ICBC and other private insurers in British Columbia offer a variety of discounts that can help drivers save money on their car insurance premiums. Here are some of the common discounts available:

Driver Experience Savings

Drivers with more years of driving experience and no at-fault crashes generally pay lower premiums. ICBC offers savings for drivers based on their years of experience:

• After 1 year claim-free driving: 10% savings
• After 2 years claim-free driving: 20% savings
• After 3 years claim-free driving: 30% savings
• After 4 years claim-free driving: 40% savings

Safe Driver Discounts

Drivers with a clean driving record free of traffic violations, at-fault collisions, and claims may be eligible for additional safe driver discounts of up to 15%. Maintaining a safe driving record is key to keeping insurance costs low.

Multi-Vehicle Savings

Insuring multiple vehicles on one policy can qualify you for multi-car discounts of up to 20%. This is a cost-effective way for households with more than one car to save money by bundling their auto insurance.

Low-Kilometre Discounts

ICBC offers discounts to people who log less than 5,000 km per year on their car.

Autonomous Emergency Braking (AEB) Discount

ICBC offers a discount for vehicles with autonomous emergency braking.

Experienced Driver Savings

ICBC extends discounts to older, more experienced drivers.

Enhancing Your Car's Security Features

ICBC offers discounts for enhancing your car's security features.

Loyalty Discounts

Some British Columbia car insurance companies will give loyalty discounts to drivers who remain active with them for years, especially if they add family members or multiple vehicles to their policy.

Multi-Car Discount

If you have multiple drivers and vehicles in the same household, putting them all on one policy can save you money.

Alumni Discounts

If you are a member of a large corporation, union, or a school alumnus, it could help you get cheaper British Columbia car insurance.

Annual Payment Discount

Paying premiums annually, instead of monthly, can lower your premiums, as paying monthly adds administrative costs to your insurer.

Good Driving Record Discount

If you’re a safe driver, obey the rules of the road and drive according to road conditions, you can reduce your chances of an accident. Car crashes stay on your insurance record for up to ten years and can result in higher premiums.

Winter Tire Discount

You can save up to 3-5% simply by adding winter tires to your car.

Insurance for new immigrants

British Columbia's medical care is provided through the Medical Services Plan (MSP). All legal residents of British Columbia are eligible to apply for provincial healthcare. To be considered a legal resident, you must be a Canadian citizen or permanent resident and live in BC for at least six months in a calendar year. Dependents of those individuals, students with valid study permits, and individuals on Working Holiday work permits are also eligible for British Columbian healthcare.

There is a waiting period of up to three months for new residents to become eligible for provincial health insurance. During this time, it is highly recommended that newcomers obtain private health insurance.

Auto Insurance in British Columbia

Auto insurance is mandatory in British Columbia. Basic auto insurance is provided through the Insurance Corporation of British Columbia (ICBC), a public insurance company. The mandatory coverage includes third-party liability and uninsured motorist protection. There is also optional coverage available through ICBC and private insurance companies.

Other Insurance Considerations

In addition to health and auto insurance, there may be other types of insurance that new immigrants to British Columbia should consider, such as home or rental insurance. It is important to research the different types of insurance that are available and choose the ones that best fit your needs.

Insurance for ride-sharing

If you're considering becoming a ride-sharing driver in British Columbia, it's important to understand the insurance requirements and regulations. In this article, we will provide an overview of the insurance options and regulations for ride-sharing services in the province.

Insurance Requirements for Ride-Sharing

Ride-sharing services such as Uber and Lyft have become increasingly popular in British Columbia. If you plan to drive for one of these companies, it's crucial to ensure you have the proper insurance coverage. Here are the key points to know about insurance for ride-sharing in British Columbia:

• Permission from Your Insurer: Before starting to drive for a ride-sharing company, you must obtain permission from your personal auto insurance provider. Failing to inform them may result in your personal auto insurance being voided.
• Additional Coverage: The insurance provided by Uber and Lyft may not be sufficient. It's recommended to purchase additional coverage to fill any gaps in their policies.
• Ride-Sharing Insurance Plans: In British Columbia, ride-sharing insurance plans are available through the Insurance Corporation of British Columbia (ICBC). These plans provide compulsory third-party liability and accident benefits.
• When the Insurance Applies: It's important to understand when your ride-sharing insurance applies. Typically, it is in effect only when you are offering ride-hailing services. At other times, your personal basic vehicle insurance takes effect.
• Commercial License Requirement: In British Columbia, ride-sharing drivers are required to obtain a Class 4 license, similar to taxi drivers. This requirement has been a point of contention for companies like Uber and Lyft, as it may reduce the number of potential drivers.
• Insurance Costs: The cost of ride-sharing insurance can vary depending on factors such as your driving record, location, and the time spent ride-sharing. It's recommended to compare quotes from different providers to find the best rate.
• Insurance Companies: Several insurance companies in British Columbia offer ride-sharing insurance, including Aviva, Intact Insurance, and the Facility Association Plan.

Obtaining the appropriate insurance coverage is crucial for ride-sharing drivers in British Columbia. By understanding the requirements and options available, you can ensure you are properly protected while providing ride-sharing services. Remember to shop around for the best rate and always inform your personal auto insurance provider of your ride-sharing activities.

Frequently asked questions