5 Things to know about auto insurance in BC!
As many of you already know, we do auto insurance a bit differently here in our Westernmost province. We often get calls from residents moving to BC from other parts of the country. They quickly become caught off-guard when they realize the BC way.
Let’s avoid the confusion, and talk about BC auto! Heck, even our own province’s residents might learn a thing or two. Here are 5 things you need to know about auto coverage in BC:
1. Our auto insurer is a crown corporation
- BC’s auto insurer was founded in the Spring of 1973 by the provincial government (the NDP at the time) as a way to control premiums and products offered to local drivers. Today, the Insurance Corporation of British Columbia, or commonly referred to as ICBC, is the insurer every British Columbian driver must register with, and buy a portion of their insurance from.
2. The ‘Basic’ portion must be purchased through ICBC
A standard declaration page issued from ICBC.
- BC’s auto policies are divided into two portions – Basic and Optional. The ‘Basic’ portion allows you to register your car with the crown corp (which gives you plates and a decal), and gives you some nominal (basic) coverages. By purchasing the basic, you are getting $200k in third-party liability, $1M of under-insured motorist protection and some accidental benefits.
3. The ‘Optional’ portion can be purchased from other insurers
- Although many people find that buying a portion of their coverage from a single insurer (owned by the government) quite frustrating, the good news is that you don’t have to buy all of it from them! The ‘Optional’ coverage is comprised of excess third-party liability, collision, comprehensive and excess under-insured motorist protection. There a currently a few insurers offering optional auto in BC.
4. ICBC operates on a no-fault system
- On May 1, 2021 ICBC enacted a new ‘no-fault’ insurance model. Under this new model, being referred to as an “enhanced care” by ICBC, individuals involved in car accidents in British Columbia will no longer be able to sue the crown corporation for damages if they are injured, even if they are not at fault. The severity of injuries does not have any impact on your ability to sue. This system has been operating successfully in other provinces for many years, and ICBC’s implementation of this change was largely due to the volume of small-claim payouts, which ultimately affected its need to increase premiums.
5. ICBC is sold through brokers with ‘Autoplan’ licences
- Since its inception, the crown corporation has used independent brokers to promote and sell its compulsory coverage. In the 70’s, they issued licences to brokerages called ‘Autoplan’ certificates, which allowed these agencies to sell the basic portion. In the 80’s, there was a moratorium placed on these licences; therefore, today the same 800 across the province are the same as they were 40 years ago. ICBC has given us hints that they will be allowing consumers to buy their ‘Basic’ coverage online come 2022; however, right now you still need to visit your local ‘autoplan’ broker for plates and decals.
That’s the gist. Alteri is not an autoplan licenced entity; however, we sell optional auto! Fill out this form today, or shoot us an email to info@alteri.ca and we will help you shop this coverage around!