How Much Is Car Insurance in BC (2024)

The average cost of car insurance in British Columbia (BC) is $1,832, making it the most expensive among all Canadian provinces. This notable hike can be attributed to the rampant insurance fraud among BC residents.

BC operates under a public car insurance system, with the basic coverage regulated and provided by the Insurance Corporation of British Columbia (ICBC) through its Autoplan program. Additionally, you can purchase optional, non-mandatory coverage from private car insurance companies.

In this blog post, we will delve into the intricacies of the car insurance industry in BC. We’ll explore the average costs, examine both mandatory and optional coverages, discuss the factors influencing car insurance rates, and provide insights on securing more affordable rates in British Columbia.

How Much is Car Insurance in BC?

According to a recent report, drivers in British Columbia pay an average of $1,832 per year for their car insurance coverage. This cost is notably higher than in the other Canadian provinces, and the primary reason behind it is the limited competition within British Columbia’s car insurance market.

The Insurance Corporation of British Columbia (ICBC) is the exclusive car insurance provider for all drivers in the province. However, their car insurance premiums do not follow similar rules to those of other provinces.

Unlike some provinces with public car insurance systems, ICBC does not factor in age and gender when determining driver insurance rates. Instead, every policy commences with a base premium, which, as of the 2021/2022 fiscal year, stands at $1,063 for basic insurance. This premium undergoes adjustments based on the following factors:

Vehicle Information
Driver Information
Discount Information

How Much is Car Insurance in BC Per Month?

The average cost of car insurance in British Columbia per month is $152.66. However, it’s important to note that individual rates can vary based on factors such as driving history, age, the type of vehicle, and coverage selected.

How Much is Car Insurance for a New Driver in BC?

According to the latest data, the average annual premium for a first-time car buyer in British Columbia is $3,194, nearly $270 monthly. This figure ranks as the second-highest in Canada, surpassed only by Ontario.

Similar to other Canadian provinces and territories, insurance premiums in BC tend to decrease over time as you gain driving experience and uphold a clean driving record without at-fault claims or traffic tickets.

How Car Insurance Rates are Calculated in BC

The Insurance Corporation of British Columbia (ICBC) outlines several factors that influence your auto insurance premium:

Driver Experience: Older, more seasoned drivers enjoy the lowest insurance rates in B.C. This is because younger and less experienced drivers typically pay higher premiums due to their limited driving history.
Driving History: Your collision history determines your auto insurance premium. According to ICBC, crashes remain on your driving record for a period of 10 years.
Who Drives Your Car: In B.C., the crash history of any listed drivers affects your premium. If a listed driver is involved in a crash, it goes on their record, not yours. However, if someone is not listed on your insurance and gets into an accident, it will affect your driving record
Where You Live: Unlike other provinces, B.C. divides the region into 14 territories based on shared characteristics rather than postal codes. Location matters due to varying hazards; urban areas are prone to collisions and theft, while rural areas may face damage from road conditions or weather.
Type of Car: The age, make, model, and features of your vehicle, along with repair costs, influence optional premiums.
How You Use Your Car: ICBC classifies drivers into four groups based on vehicle usage: pleasure, commute, business, and delivery. Different rate classes apply, depending on the purpose and distance travelled.
Amount of Coverage: Adding optional coverages to your Basic Autoplan will increase your premium.
Eligibility for Discounts: ICBC provides discounts for various factors, including logging fewer than 5,000 km per year, low-kilometre discounts, fleet discounts, disability discounts, Autonomous Emergency Braking (AEB) discounts, senior discounts, anti-theft discounts, and deductible amounts.
Deductible Amount: The deductible, or the amount paid before the insurance provider covers the claim, impacts the premium. Opting for a higher deductible than required can lower your premium.

Mandatory and Optional Car Insurance Coverage in BC

A basic Autoplan policy in British Columbia includes the following mandatory coverages:

Accident Benefits: B.C. drivers must purchase an accident benefit coverage valued at a minimum of $300,000. This coverage encompasses costs, wages (up to $740 a week), rehabilitation, and more in the event of injury resulting from a crash. Notably, this coverage applies even if the driver is responsible for the accident.
Third-Party Liability: This coverage safeguards the policyholder in the event of being at fault for an accident causing damage to another person’s vehicle and/or injuries. Basic Autoplan provides coverage for up to $200,000 in vehicle damage.
Underinsured Motorist Protection (UMP): When the policyholder is involved in an accident with an underinsured party, this coverage compensates for damages up to $1 million per insured person. Additional coverage options are available, increasing total benefits to $2 million, $3 million, $4 million, or $5 million.
Hit-and-Run Damage and Injuries: Up to $200,000 is available for individuals whose property is damaged, injured, or killed due to a hit-and-run. Importantly, this coverage is accessible to all B.C. residents, irrespective of vehicle ownership or insurance status.
Inverse Liability Protection: In the event of an accident in parts of Canada or the U.S. where laws prevent filing a claim against the other party, Autoplan will cover up to 100% of the cost to repair the insured vehicle, with adjustments for fault attribution.

While Autoplan covers personal injury and basic property damage costs, you can also get additional coverage for extra protection of your vehicle:

Collision Coverage: This coverage pays for repairing or replacing your car in the event of a sustained collision.
Comprehensive Coverage: This covers repairing or replacing your car if it is stolen, vandalized, or damaged by falling objects.
Specified Perils: This customizable option allows policyholders to select specific perils for coverage. It is essential to note that if a peril is not included in the policy, there is no coverage for it.
All Perils: A comprehensive option combining collision and comprehensive coverage. All perils are optional coverage.

How to Get Cheap Car Insurance in BC

If you want to save on your car insurance and get cheaper rates in British Columbia, here are some tips that can help you:

Bundle Your Policies: Consider purchasing your car and home insurance from the same provider to qualify for a discount.
Maintain a Good Driving Record: A clean driving record is one of the most effective ways to secure lower insurance premiums. Safe driving habits can translate to significant savings.
Choose the Right Deductible: Opting for a higher deductible can lower your car insurance premium, but be mindful of the balance between savings and out-of-pocket expenses in case of a claim.
Select Appropriate Coverage: Evaluate your car’s age and condition to determine the level of coverage you truly need. For instance, a comprehensive insurance plan might not be necessary if you have an older vehicle.
Shop and Compare: Don’t auto-renew your insurance. Take the time to shop around and compare quotes to ensure you’re getting the best deal.
Pay Annually: An annual payment schedule can help you avoid monthly rate fees and save you money in the long run.
Invest in Security Devices: Installing safety devices in your car, such as alarms or anti-theft systems, may make you eligible for insurance discounts.
Install a Telematic Device: Consider using a telematic device that tracks your driving behaviour. This tool can help tailor your car insurance premium to your specific driving style. If you’re a safe driver, this option can lead to cost savings on your car insurance.

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Final Thoughts on How Much is Car Insurance in BC

Understanding the factors influencing car insurance rates in British Columbia is essential for making informed decisions about your coverage. From your driving history and the type of vehicle you own to your location and coverage preferences, each element is crucial in determining how much you’ll pay for car insurance in BC.

Exploring available discounts and maintaining a clean driving record can significantly impact the affordability of your coverage. Ready to find the best car insurance rates in BC? Get personalized quotes and explore tailored coverage options today.