If you drive a car in British Columbia, you have ICBC auto insurance. But do you understand the distinction between necessary and optional vehicle insurance? You could be losing out on significant discounts and improved coverage if you don’t! Here are five things you should know about vehicle insurance as a BC driver.
ICBC (International Broadcasting Corporation) All drivers in British Columbia are required to have basic Autoplan insurance. It ensures that you, as well as all British Columbians who own and operate a motor vehicle, are covered by a minimum level of coverage.
2. You have the option of purchasing additional optional coverage from ICBC and other private insurers, such as BCAA. For total security and peace of mind, most consumers choose for coverage beyond ICBC Basic Autoplan.
3. Get your mandatory ICBC coverage as well as options for supplemental coverage at BCAA. Our knowledgeable advisors take the time to get to know you and then recommend the appropriate coverage for your specific needs.
4. Take advantage of substantial discounts with BCAA Optional Car Insurance.
5. With BCAA Optional Car Insurance, you’ll have unique coverage features.
How much car insurance coverage do I need in BC?
All drivers in British Columbia are required by law to acquire the following minimum coverage from ICBC:
- Third-party liability insurance of $200,000 It safeguards you in the event that your car causes bodily harm or property damage to another person. The maximum compensation for property damage is established at $20,000 for cases in which the amount of bodily injury and property damage exceeds the required limit.
- Underinsured motorist protection (UMP) This coverage protects you if you’re in a collision with a negligent driver who doesn’t have enough insurance to cover your property damage or medical bills. ICBC’s basic coverage protects you for up to $1 million per person. You can purchase an extension from a private auto insurance BC company or ICBC for added protection.
- Coverage for hit-and-run accidents protects you if you’re in an accident with an at-fault driver who flees the scene. Under ICBC Basic Autoplan, the maximum amount is $200,000.
- Inverse liability coverage kicks in when you’re in a collision in a section of Canada or the United States where local laws make it impossible for you to recover losses from the at-fault driver.
Does insurance follow the car or driver BC?
Crash victims will be tracked by the at-fault driver, not the car owner, under the new approach. As a result, if someone causes a collision while renting your car, the claim will be recorded on their driving record rather than yours. Isn’t that reasonable?
However, under the current paradigm, any accident involving your vehicle is recorded on your driving record, even if you weren’t driving or in the car at the time. ICBC’s new car insurance plan will change this. It’s all about the driver after September 1st, not just the car.
Can someone drive my car ICBC?
Oliver Belisle, Western Financial Group’s manager of market relations, has worked in the insurance sector for 12 years, with eight years in personal insurance sales and underwriting/training. Western Coast Insurance Services, a division of Western Financial Group, has insurance consultants who can answer any questions you have about automobile and truck insurance.
Yes, someone else driving your car is covered by your insurance. In reality, ICBC mandates you to name all possible drivers on your policy, whether they are secondary or occasional. These people are covered by your policy once they’ve been listed. There is some coverage available for unlisted drivers, but it may come with a cost.
Yes, you are allowed to drive outside of the province (on a road trip, for example). The car must, however, “live” in British Columbia and spend the majority of its time there.
In the case that a secondary or occasional driver makes a claim on your vehicle, who’s insurance is affected?
If there is a claim, the person who was driving at the time of the claim will be impacted. For example, if a buddy borrows your car, drives it, and then collides with it, their insurance will be affected but only if they are named on your policy. Otherwise, you risk incurring a penalty.
Although there are some distinctions between ICBC and private policy, they both give the same basic coverage: third-party liability, comprehensive, and collision. Private auto insurance, on the other hand, may have lower deductibles and larger coverage limits than ICBC. Furthermore, private policies may include free roadside assistance, lock re-keying, and rental vehicle insurance, whereas ICBC charges extra for these services.
What paperwork should someone have to confirm they have permission to drive my automobile if they borrow it?
To lend your car to a buddy, no specific permission documents are required. They have all they need if they have a valid driver’s license, as well as the vehicle registration and insurance papers.
Is it possible for one driver (e.g., a parent) to allow their licensed child to drive their automobile on a regular basis?
Yes, they are capable. However, this child must be included on the policy; otherwise, the insurance company may refuse the claim or impose a significant penalty on the insured. They should be mentioned on the policy if they live at the same address as you and use your car even once a year.
If you know someone will operate the vehicle at some point during the policy term, you should classify them as a secondary driver.
Yes, the premium would be affected but not necessarily in a negative way. In British Columbia, the primary operator’s driving record accounts for 75% of the rate, while the secondary operator with the lowest discount accounts for 25%. Other secondary operators may be mentioned on the policy, but their presence has no bearing on the pricing.
What is the significance of updating your insurance agent on who is driving?
If you have home drivers who aren’t included on your insurance policy, you could face a hefty fine or have your claim dismissed.
People appear to have misunderstandings about auto insurance terminologies, as well as what certain coverage means and does. Here are some fundamentals:
Collision insurance protects your car from damage that you are partially or completely responsible for. If the adjuster finds you to be 25% or more at fault following a claim, collision coverage will cover the damage to your vehicle. However, if you are judged to be 100 percent at fault, the damage will be covered by the other driver’s liability insurance.
Damage to your car caused by something other than an accident is covered. This includes, but is not limited to, a falling tree, colliding with a deer, flooding, theft or vandalism of the insured vehicle, and other events.
Liability insurance covers the costs of damages to other persons and/or their property for which you are partially or completely responsible.
Can you drive in BC without insurance?
If you’re charged with driving without insurance, you’ll receive a piece of paper detailing the charges. You will receive one of the following:
Typically, the police will issue you a violation ticket. If you have a bad driving record or have previously been convicted of a driving offense, the police may issue you an appearance notice or a summons to court at a later date usually within six months of the occurrence.
The paperwork outlines the offenses you’ve been charged with, the consequences you’ll face, and whether you’ll have to appear in court. You don’t have to appear in court if you have a violation ticket; if you don’t want to contest the ticket, you can pay the amount shown on the ticket. We’ll go over your alternatives briefly.
However, if you have received an appearance notice or a summons, you must appear in court on the date indicated on the notice or summons. If you fail to appear in court, a warrant for your arrest may be issued. See our page on what to do if you receive an appearance notice or summons for additional information.
How can I lower my car insurance in BC?
If you’re looking for methods to save money on your insurance, there are a few things you can do to lower the amount you’ll have to pay.
How much is car insurance in BC monthly?
In British Columbia, the average cost of auto insurance is $1,832 per year, or roughly $150 per month. With the implementation of no-fault insurance in May 2021, rates are expected to drop. Check with ICBC to see whether you qualify for a new lower rate.
Shop and compare
Find out which business in British Columbia offers the cheapest auto insurance as well as the best value for you and your vehicle. Rates might fluctuate up to four times per year, but comparing British Columbia auto insurance with us is completely free.
Stay with your current insurer
Some vehicle insurance companies in British Columbia provide loyalty discounts to drivers who have been with them for several years. Especially if they add several automobiles or family members to their policy.
Increase your deductible
When you settle a claim, your deductible is the amount you pay before your insurance pays the balance. It may save you money if you are willing to double your deductible.
Maintain a good driving record
You can lower your chances of being involved in an accident if you drive safely, follow the regulations of the road, and drive according to the conditions. Accidents on your insurance record might linger on your record for up to 10 years, resulting in higher premiums.
How many times can someone drive your car ICBC?
…about the impending revisions to driver disclosures and the new rating criteria that will take effect in 2019?
As of September 1st, 2019, ICBC will require all Autoplan brokers to ask you for the names of anyone who may drive any of your insured vehicles in addition to the principal driver. Non-household members must be named if they drive any of your vehicles 12 times or more per year; all household members must be listed on the policy, regardless of how often they drive any of your vehicles.
Premiums will likely climb if other drivers fall into a higher risk group than the primary driver.
In British Columbia, one out of every five crashes is caused by drivers who are neither the registered owners or primary drivers of the car. It’s a more equitable method to account for risk to list all drivers in a policy and price it accordingly. It’s also a common industry practice with auto insurance firms across North America.
These new restrictions will take effect on September 1, 2019, and ICBC is receiving a lot of inquiries about them. We’re pleased to address some of the most common ones here as your trusted insurance broker.
Make sure to call AllWest Insurance as soon as possible to ensure that you’re getting the greatest rate on vehicle insurance from knowledgeable agents. You may also find out more about our auto insurance alternatives by visiting this page.
I CAN’T PREDICT EVERYONE WHO MAY DRIVE MY VEHICLE(S) IN THE NEXT YEAR HOW DO I AVOID THE POSSIBILITY OF A FINANCIAL PENALTY?
‘Occasional drivers,’ according to ICBC, are those who are not family members or employees and drive any of your vehicles less than 12 times each year. Unlisted Driver Protection can be purchased for around $50 per year if you frequently lend your vehicle to infrequent drivers.
Reminder: You do not need to declare any additional drivers if you never lend your vehicle to others. You are not needed to purchase Unlisted Driver Protection if you lend your vehicle to non-family members less than 12 times per year.
WHAT ABOUT MEDICAL EMERGENCIES OR IF I LEND ONE OF MY CARS TO A DESIGNATED DRIVER?
If any of your cars are involved in a crash while responding to a medical emergency or while participating in Operation Red Nose, ICBC will make an exception while assessing the claim.
WHAT IF I HAVE SECONDARY DRIVERS BUT DON’T DECLARE THEM?
If your insurance only lists the principle driver and someone other than the principal driver is involved in a crash, ICBC may impose a financial penalty, and you may face a higher aggregate premium at renewal.
WHAT IF I FORGET TO DECLARE AN ADDITIONAL DRIVER BUT WOULD LIKE TO AFTER I RENEW?
It’s no problem! Your broker can add drivers at any moment without incurring any additional transaction fees (additional policy premiums may apply).
WHAT SHOULD I DO FIRST?
Call or visit one of our offices to speak with your AllWest Insurance broker. We keep up to date on all ICBC vehicle insurance rules and updates, and we’d be pleased to assist you in ensuring you have the coverage you require.
While these changes won’t take effect until the autumn of 2019, knowing what they’ll mean now can help you make better decisions about how you use your vehicle and who drives it.
Can I let someone drive my car in BC?
ICBC will begin asking for the names of any friends or family members who may drive the car on September 1st. Regardless of how often they will use your vehicle, you must mention every member of your household. If one of the drivers on the list causes a collision in your vehicle, they will be held liable.