Cheapest Car Insurance in Vancouver
Learn how car insurance works in Vancouver, B.C.
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Freelance writer
Car insurance in Vancouver
Vancouver, known for its urban density and ethnic diversity, can be challenging for drivers and commuters to navigate. Being a global destination, it's no surprise Vancouver has the worst road congestion in Canada: Vancouverites lost an estimated 75 hours of productivity in 2021 due to traffic, according to the TomTom Traffic Index.
Plus, drivers in Vancouver can't shop around for insurance providers. Why? B.C. residents can only buy mandatory insurance from one provider, the Insurance Corporation of British Columbia (ICBC). A Crown corporation, the ICBC provides licensing and car insurance in the province.
Auto insurance prices are overseen and regulated by the British Columbia Utilities Commission (BCUC), an independent commission tasked with overseeing rates and service quality standards for other industries, including auto insurance.
Once the province with the highest average premium (Ontario has since claimed the top spot), ICBC introduced significant regulatory changes in recent years that have helped bring rates down.
In 2019, ICBC changed the way it tracks driving history. Now, crash history follows the driver that caused it; blame is no longer automatically assigned to the primary driver. However, to protect their driving record, the main driver must list all potential drivers on their policy before an accident happens.
Then in May 2021, B.C. switched from a litigation-based insurance system to a no-fault system. No-fault insurance means drivers in B.C. can't sue another driver for compensation after a collision to access medical treatment not covered by Medicare. Instead, your insurance company pays your liability and medical costs, regardless of who caused the accident.
By law, all Vancouver drivers must have a basic Autoplan (the name for ICBC's insurance), which can be bought from registered Autoplan brokers.
Autoplan includes:
- Enhanced care coverage - Medical care and recovery benefits for physiotherapy, chiropractic, dental care, counselling, and more. Plus, up to $105,000 in lost wages, regardless of who was responsible for the crash.
- Basic vehicle damage - Repairs up to a limit of $200,000 if an accident occurs and it is your fault.
- Protection if you are responsible for a crash - Up to $200,000 for others' injuries or vehicle damage if you get into a crash and it's your fault. It also covers you if you damage another person's property.
- Protection if the other driver does not have enough insurance - Up to $1 million if you're injured or killed by the driver of an underinsured vehicle, and you are not at fault for the crash.
- Protection where local laws can affect your claim - Inverse liability protection covers you in parts of Canada or the U.S. where local laws don't let you claim against the person who caused your crash. Your vehicle repair costs are covered up to 100% (less if you were partly responsible for the crash).
Optional coverage auto insurance can be purchased through the Roadside Plus and Roadstar packages.
Mandatory andoptional insurance coverages in Vancouver
Coverage name | Designation | Description | ||
Enhanced accident benefits | Mandatory | Part of Basic Autoplan. Covers medical costs with no overall limit. Ninety percent of income is replaced, up to $105,500 (higher earners can purchase Top-Up coverage) | ||
Basic vehicle damage | Mandatory | Covers the cost of repairing or replacing your vehicle if it’s damaged in a collision you’re not at fault for, up to $200,000 | ||
Third party liability | Mandatory | Provides coverage if you damage someone else’s property (that isn't a car) with your car. Also provides coverage if you get into an accident in a province or state that does permit other drivers to sue for damages. | ||
Underinsured motorist protect | Mandatory | Provides compensation up to $1 million if you make a third-party liability claim against a driver that does not have enough insurance to cover your costs. | ||
Inverse liability protection | Mandatory | Covers you if you get into an accident in a province or state that doesn’t let you claim against the person who caused the crash. Vehicle repair costs are covered up to 100%, but only if you’re 100% not at fault. Compensation is deducted according to your percentage of the blame (for example, if you’re 50% at fault, you will only get 50% of costs covered) | ||
Unlisted driver protection | Optional | Provides collision forgiveness for the first crash that an unlisted driver gets into with your car. Also ensures that the crash doesn’t go onto your record, but rather the unlisted driver’s. Free to add to your policy. Charges apply if an unlisted driver gets into an accident with your car. | ||
Collision | Optional | Pays to repair or replace your car when you're at fault for causing an accident. Damage from a hit-and-run driver is also covered by collision insurance. Towing charges are also reimbursed. If you have a track record of being at fault for collisions, you may be charged a higher-than-normal deductible, or you may not qualify for this coverage. | ||
Comprehensive | Optional | Pays to repair or replace your car if it’s damaged by something other than a collision with another car. Covered scenarios include theft, vandalism, fire, flying or falling objects, weather, or collisions with a wild animal. | ||
Specified perils | Optional | Provides coverage for perils insured by comprehensive insurance, but only for ones you name in your policy; if it’s not in your policy, you’re not covered for it. | ||
Hit and run | Optional | Pays to repair or replace your car if it’s damaged by an unidentified driver who doesn’t stay at the scene. If you have collision insurance, you likely don’t need to buy hit and run coverage. | ||
Income top-up | Optional | Increases your income replacement amount that’s part of Enhanced Care coverage. | ||
Extended third-party liability | Optional | Increases your liability coverage beyond the $200,000 mandatory minimum. Policy limits can be increased to up to $5 million. | ||
Loss of use | Optional | Covers temporary transportation expenses when your car is out of commission due to an event covered by ICBC. | ||
Luxury vehicles | Optional | Enhanced Basic Vehicle coverage for cars that retail for $150,000 and over. | ||
Rental vehicle coverage | Optional | Provides liability, accident benefits, underinsured motorist, collision, comprehensive, and loss of use coverages to a rental car. | ||
New vehicle protection | Optional | Pays to repair or replace your car even if you were at fault for the collision. Covers the full replacement cost (depreciation is not deducted) and is indexed for inflation. | ||
Vehicle Travel Protection | Optional | Helps cover unexpected expenses due to a claim while travelling. Included in Roadside Plus and Roadstar packages. | ||
Emergency Roadside Expense Repayment | Optional | For vehicle emergencies like breakdowns, locked-in keys, and flat tires. Included in Roadside Plus. | ||
Theft Deductible Waiver | Optional | Pay no deductible if your vehicle is stolen or shows obvious signs of attempted theft. Included in Roadside Plus. | ||
| Destination Assistance | Optional | Reimburses you up to $100 to help you get where you're going after a collision, theft, or vandalism incident. Included in Roadside Plus.
| ||
Lock rekeying | Optional | If your keys are stolen, this will pay to alter your car's lock mechanism so the old key will no longer work. With Roadside Plus, up to $1,000 is covered, and there's no deductible. With Roadstar, expenses up to $500 are covered, and a deductible applies. | ||
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I have never submitted a claim for any policy's I have had ON MY TRAVELS. (I hope iI never have to.) So that part I can't comment on. If I ever need to submit will know how efficient it goes. thank you
Charlene
Call back within 5 hours
Call back within 5 hours. The Lady spoke clear English.
William A
promtly got a call back and setup with…
promtly got a call back and setup with a lender
Rodney STORIE
Quick response and great quotes
Quick response and great quotes, the only problem is: I got two different quotes in two days, which is cheaper in the second one.
Ray
Great information when speaking with…
Great information when speaking with John. Very knowledgeable and easy to talk with. Unfortunately I was last minute and resigned w the actual lender, not the business I used for the purchase and last renewal.
Corbett Thoms
Easy and fast
Easy and fast
Joanne
The quote the representative was able…
The quote the representative was able to obtain.
Jonathan McConnell
The agent I spoke to was very helpful…
The agent I spoke to was very helpful in recommending a few brokers in my area who was willing to work with my situation
The Blessed One
Laurie is a true agent but John is not
Laurie is a true agent but John is not, the person with extension 136 is not a good listener to client. Extension 133 Laurie is good on her duties!
Thu Tram
How much does car insurance cost in Vancouver?
Vancouver is a large metropolitan city, and car insurance premiums will vary depending on the circumstances.
A 45-year-old man from West Vancouver with a good insurance history can expect to pay about $1,500 a year, according to a recent report commissioned by the ICBC.
The report calculated premiums for several different driver profiles. In the above example, the male driver has a claim and conviction-free record, a 100 km commute, and an annual mileage of 30,000 km. He also drives a 2018 Ford F150 XLT Supercrew.
His rate is approximately 25% higher than the provincial average, estimated to be $1,199 in ICBC’s Annual Service Report.
Your Vancouver auto insurance can vary depending on several factors, including:
Your experience: The longer you have been a licenced driver, the lower your rates will be. ICBC looks favourably at drivers who have been on the road and pose less risk than inexperienced drivers.
Crash history: It may seem obvious, but fewer or no crashes means better Vancouver auto insurance rates.
Who's driving: You'll have to list the drivers of your car for ICBC and, again, the better experienced, the lower the rates.
Where you live: ICBC divides the province into different zones depending on traffic, and population density, among other criteria. Areas with more of the latter generally have higher rates.
How you use your car: Occasional drivers will pay less for their Vancouver auto insurance than those who use their vehicle daily to commute and for business purposes.
Discounts: Adding safety features to your car, like anti-theft devices, can help generate discounts on your Vancouver car insurance rate.
Level of protection: Adding optional coverage such as collision, comprehensive or extended third-party liability will increase the cost of your Vancouver car insurance rates.
Deductible: The higher the deductible, the less risk for ICBC and the lower your Vancouver auto insurance rates.
Your car: While older model cars may have maintenance and other repair issues, they will come with cheaper Vancouver insurance rates. Higher-end or new cars, on the other hand, are worth more and might cost more to fix, and therefore come with higher rates.
How to get the cheapest car insurance in Vancouver
Getting the cheapest car insurance in Vancouver by assessing how and when you use your car and who is driving it. You can lower Vancouver car insurance rates by:
- Being a low-kilometre driver. ICBC places people who drive fewer than 10,000 km per year into this category.
- Adding safety features (or buying a car with features) such as autonomous emergency braking (AEB). Vehicles equipped with factory-installed AEB are eligible for a 10% discount as AEB has been statistically shown to help prevent crashes.
- Keeping your insurance record free of claims and driving convictions. ICBC offers discounts for long-term drivers with clean records.
- Being a senior. These discounts apply to policies where the vehicle is owned or leased by a senior (65+) and is used for pleasure, not daily commuting.
Frequently asked questions about Vancouver car insurance
Here's what else you need to know about getting car insurance in Vancouver.
Which company has the cheapest car insurance in Vancouver?
Comparison shopping, one of the best ways to find cheap car insurance, is challenging in Vancouver. The province owns and operates the one insurance company for all drivers: the ICBC. The insurance package supplied by the ICBC is called Autoplan insurance and is delivered through B.C.'s network of Autoplan brokers. Drivers can purchase optional auto insurance coverage from private car insurance companies or the ICBC. Regardless, buying optional coverage can only be done through a registered Autoplan broker.
The good news is that Vancouver car insurance rates declined after the B.C. government switched ICBC from a "litigation-based model" to a "no-fault" model. The province has taken additional steps to bring down insurance costs.
ICBC has a rebate for those who held a basic auto insurance policy at any time during February 2022. Eligible policyholders will receive $110, and commercial customers will receive $165.
Finally, in 2022, Premier David Eby announced a two-year rate freeze on basic auto insurance to help alleviate pressures caused by increasing living costs.
ICBC offers drivers guidelines on how to keep Vancouver car insurance rates low. Staying crash free, raising your deductible, buying appropriate coverage and finding discounts can all help reduce costs.
Can I get month-to-month car insurance in Vancouver?
Monthly insurance isn't available, but ICBC does offer short-term insurance. Policies for one year, three to 11 months, or even short-term operation permits of up to 15 days are available. Other provinces require drivers to buy a year-long policy but can cancel before renewal.
I am a newcomer to Canada. How do I buy car insurance in Vancouver?
There are two categories for new drivers looking for car insurance in Vancouver:
New to Canada. ICBC requires proof of driving history. To prove your driving experience, ICBC requires a driver's abstract or letter of experience from the licensing authority that issued your first non-learner driver's licence. This documentation is also required to obtain your full B.C. driver's license. Find out what you need to prove your driving experience.
Returning to Vancouver. If you received your first licence in B.C., you need to book an appointment at an ICBC office to update or renew your address.
Joel Kranc, Freelance writer
Joel Kranc is a freelance writer and content provider who has worked with RATESDOTCA since 2019. He holds an MA in political science from the University of Toronto and a film certificate from New York University.
He has been published in and worked for such companies as CNN, Rogers Media, Institutional Investor Magazine, The Globe and Mail, Infrastructure Investor, BenefitsPRO Magazine, Global Finance Magazine, With Intelligence, the CPP Investment Board, Hospitals of Ontario Pension Plan, and many more financial services and industry publications.
He is the author of "Retirement Planning in 8 Easy Steps," which, when released in 2015, was No. 11 on the Publisher's Weekly US Bestseller List for Business and Finance, beating out Mark Cuban's "How to Win at the Sport of Business."
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