Car insurance in British Columbia. Learn all about it here.

B.C. has a government-run auto insurance market. That means drivers have to purchase mandatory auto insurance coverage from a Crown corporation known as the Insurance Corporation of British Columbia (ICBC). Since 1973, drivers have had very little choice on car insurance quotes in B.C. Because motorists can’t shop around for quotes from private insurance companies, this can make it hard to find cheap auto insurance in B.C.

However, you can still purchase additional optional coverage from private car insurance companies in British Columbia, such as collision coverage, fire coverage and theft coverage.

Auto insurance rates in B.C. are determined by a variety of factors, including:

• Your driving record (traffic tickets, demerit points, at-fault collisions, licence suspensions)
• Your age and gender
• Your driving experience
• The type of vehicle you drive
• Where you live
• How you use your vehicle and how often you drive
• The amount of coverage you select
• Your deductible

Fraud and an increase in collisions are behind sky-high B.C. car insurance costs. Other factors that contribute to B.C.’s steep premiums include strict mandatory minimum liability regulations and generous accident benefits laws. Some experts also say the lack of competition in the province's government-run insurance market is a key contributor to high insurance rates. This can make it hard to find cheap car insurance in B.C., especially insurance for young drivers in British Columbia.

The same goes for when you’re searching for cheap car insurance in B.C. for new drivers, as well as the elderly. Car insurance in B.C. for seniors, high-risk drivers and students can be more expensive than the average rate.

Basic auto insurance rates continue to follow the upward trend of recent years. In fact, a 4.9% increase applies to all new policies that are effective on November 1, 2016 or later. ICBC cites rising injury claims and an increase in vehicle crashes as the reasons why they raised rates. B.C. auto insurance rate changes.

BC auto insurance rate changes

Source: fsco.gov.on.ca

Yes. You're required to get a minimum mandatory level of insurance coverage from the government-run Insurance Corporation of British Columbia (ICBC).

Here's a breakdown of the basic coverage you have to buy from the ICBC:

• $200,000 in third-party liability insurance: covers both bodily injury and property damage. Within this amount, property damage will be capped at $20,000.
• Underinsured motorist protection: up to $1 million per person.
• Medical coverage: up to $150,000 per person.
• Hit-and-run coverage: up to $200,000.
• Inverse liability coverage: This type of insurance covers you when local laws don't let you make a claim against the at-fault party. The coverage is up to 100% of the claim, but it accounts for the degree you're partially at-fault. If you're 25% at-fault, you receive only 75% of the covered costs.

What about no-fault insurance in B.C.? The province operates on a tort system, where the not-at-fault injured party is entitled to take legal action against the at-fault party to recover damages for loss of income, out-of-pocket expenses, pain and suffering, and more.

However, the accident benefits portion of the claim follows the no-fault insurance in British Columbia structure: the injured person can receive coverage from their insurance policy (the basic plan required by law) regardless of who is at fault.

If you're convicted of driving without insurance in B.C., you'll pay a fine of $598. You might also be fined $81 for failing to produce an insurance document.

You need to be at least 16 years old to apply for a learner's licence in B.C. Drivers in British Columbia have to go through a three-stage graduated process to get a full licence. As a new driver, your age and lack of experience will impact your B.C. car insurance estimate.

The first stage is the learner's (L) licence, which places some restrictions on new drivers. To earn an L licence, you must pass a medical and knowledge test and be accompanied by a fully licensed driver who is at least 25 years old. With a learner's licence, you also have to maintain a 0% blood alcohol concentration. The next stage is a novice licence, followed by a full licence.

After 12 months of ticket-free driving, you can take the first road test (Class 7). If you pass, you get a novice (N) licence, which has fewer restrictions than the learner's licence and lets you operate a vehicle on your own.

After you hold the N licence for 24 ticket-free months, you can take the last road test (Class 5). You can reduce this N licence period by six months if you take a certified ICBC driver training program. Bonus: a training program can also help you lower your future insurance premiums.

If you pass the final road test, you'll be awarded a full B.C. driver's licence.

Your credit score will not impact your British Columbia car insurance rates. Because the business is regulated by the provincial government (ICBC), credit score is not usually something you’ll find on the list of criteria that insurance companies require in order to provide your rate.

At the very minimum, every driver in British Columbia must be covered by ICBC’s Basic Autoplan. This plan includes:

• Accident benefits
• Third-party liability coverage
• Underinsured motorist protection
• Hit-and-run damage and injuries
• Inverse liability protection

You can also add additional coverage through the ICBC or a private B.C. car insurance company. This may include everything from direct compensation property damage in British Columbia to comprehensive coverage.

• Unlisted driver protection
• Collision
• Hit-and-run
• Income top-up
• Comprehensive (non-collision damage)
• Extended third-party liability
• Extension underinsured motorist protection
• Luxury vehicles
• Specified perils
• New vehicle protection
• Specialized coverage, including protection for all-terrain vehicles
• Optional insurance packages (loss of use, rental vehicle coverage, vehicle travel protection, lock rekeying, theft deductible waiver, etc.)

If you’re looking for optional coverage, don’t just go with the first B.C. auto insurance company you find — try to compare multiple B.C. auto insurance quotes to make sure you’re getting the best deal.

In addition to vehicle repairs and property damage, your basic auto insurance policy will also come with third-party liability insurance in B.C., which covers repairs for the car as well as medical costs and wage losses for the person inside of it. This is important — whatever your injuries might be, you can get the coverage you need, including mental health treatment. If you miss work because of your accident, you’ll be covered by these accident benefits in British Columbia required by your insurance.

You'll also be covered for underinsured or uninsured motorist coverage in British Columbia. This is when the person that you’re in a collision with does not have enough insurance to pay for the damages, as well as for those of other drivers in your household.

Not quite yet. The ICBC announced a telematics pilot program in 2018, and is testing it out on 7,000 drivers across the province with less than five years of driving experience. The pilot program is set to wrap up in October 2021. In the future, this may be a way for drivers to save money on the price of B.C. car insurance.

Usage-based insurance means your insurance premiums are based on how far you drive your car, or your driving behaviour. This includes the use of telematics, which uses a device installed in a driver’s vehicle to monitor driving behavior in order to determine the rate. For instance, if the technology tracks that you often drive over the speed limit, accelerate aggressively or brake suddenly, this can increase your insurance premiums. Likewise, if you consistently practice safe driving, this could lower your B.C. car insurance rate.

Ride-sharing or ride-hailing companies must be approved to operate in at least one of B.C.’s five regions. For example, Uber and Lyft can only operate in the Lower Mainland and Whistler regions.

Basic insurance coverage must be provided by the ride hailing company you work for. Ride sharing companies must be approved by B.C.’s Passenger Transportation Board, and must obtain a blanket insurance certificate from the ICBC that covers its rideshare drivers when they’re on the job. Basic coverage includes accident benefits and up to $1 million for third-party liability. Ride-sharing companies can also buy optional blanket coverage to cover their drivers, such as collision and comprehensive. If the ride-sharing company you work for doesn’t offer optional coverage, you can obtain it yourself through an insurance broker.

Note that ride-sharing insurance only covers you when you’ve accepted a trip and are driving to pick up a passenger, or when you’re on a trip with the passenger in the vehicle. Ride-sharing insurance also doesn’t replace your personal policy — all drivers must have the ICBC’s minimum mandatory automobile insurance coverage in B.C.

If you’re new to Canada and want to get a driver’s licence in B.C., you have 90 days to do so after moving. Though no proof of insurance is required, car insurance is required in B.C. for new immigrants. You’ll want to look into car insurance for new drivers in B.C. alongside getting your licence.

B.C. also a reciprocal licence exchange with other Canadian provinces and territories, the United States, and the following countries:

• Austria
• Australia
• Belgium
• France
• Germany
• Guernsey, Isle of Man, Jersey
• Ireland
• Japan
• Netherlands (except former territories in Antilles: Aruba, Bonaire, Curacao, Saba, St. Eustatius, and St. Maarten)
• New Zealand
• South Korea (not motorcycles)
• Switzerland
• Taiwan (not motorcycles)
• United Kingdom (includes England, Wales, Scotland and Northern Ireland)
• United States (includes Washington DC and Puerto Rico)

If you’re moving to B.C. from one of these countries, you can exchange your licence by making an appointment at an ICBC office. Bring your identification, your driver’s licence, the fee for your licence, and your proof of driving experience (a driver’s licence will suffice).

If you’re not from a reciprocal country, you can still apply for a B.C. licence with the same documents, but you will also have to take a road test and a knowledge test.

If your documents aren’t printed in English, you’ll need to get them translated by an ICBC-approved translator before submitting them.