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Automobile Insurance
Automobile Coverage in British Columbia All vehicle owners must carry a minimum of $200,000 in Third Party Liability Coverage through the Insurance Corporation of British Columbia (ICBC). Included in this basic coverage are a range of benefits of up to $150,000 for any person injured in an accident regardless of who is at fault. It also provides $1 million in protection for you or any member of your household who is injured by a motorist with insufficient insurance to compensate for the injuries sustained. All other automobile insurance - including Collision and Comprehensive - may be purchased through the Crown Corporation or through private insurers. B.C. Land & Insurance offers you a choice: the full range of ICBC protection or basic ICBC protection plus optional coverage from two private insurers - Family Insurance Solutions and ING Insurance. By providing a choice, B.C. Land & Insurance ensures you receive the best possible coverage at the best possible price. Who is Covered? In British Columbia, the insurance policy is issued to the owner of the vehicle. However, your coverage extends to any authorized and eligible operator of the vehicle, any passengers in the vehicle and anyone injured as the result of an accident involving your vehicle. Who is Not Covered? The average person in British Columbia should not be concerned about limits of coverage. If your vehicle is being operated by someone with a valid licence using it for a lawful purpose coverage will apply. However, there are some circumstances where all, or some portion of coverage, may be denied. The most common are:
Rates and Rate Classifications There are four basic factors that affect your government and private insurance rates: 1. the years of driving experience of the principal operator; and. the number of claims; 2. the type of vehicle 3. the way the vehicle is typically used, and; 4. the area in which the vehicle is operated. Claims Rated Scale ICBC uses the years of driving experience and the number of claims in a complicated formula that creates a position on a "Claims Rated Scale." Based on your position on this scale, you could receive a premium discount or a surcharge on your insurance rates. Vehicle Type Every vehicle type and model is rated separately. In establishing rates government and private insurance industry executives take into consideration the likelihood the vehicle will become involved in an accident based on the experience of other vehicle owners. They also take into consideration replacement costs, repair costs and the likelihood the vehicle will be stolen. Some vehicles, such as motor homes, trailers, golf carts, replicas and specialty cars, do not fall comfortably into any rate class. In these special circumstances, ICBC will allow you to assign a value for the vehicle. The declared value is the amount that will be paid in the event of a total loss. Vehicle Use In British Columbia there are three basic classifications of use that affect your premium: pleasure use only; operation to and from work or school and business use. As a rule of thumb the less you use your vehicle, the lower your premium. However, a person with pleasure use only coverage can occasionally drive to work or for business. This type of use is extremely limited and you should consult your B.C. Land & Insurance representative for clarification. Area of Operation As an insured motorist, you are entitled to drive anywhere in Canada or the United States. However, the premium you pay for your coverage will vary depending on where the vehicle is normally parked. The lowest rates in British Columbia are enjoyed by people on Southern Vancouver Island while the highest are paid by people in Greater Vancouver. Inexperienced Drivers & Graduated Licences ICBC believes that a new driver is twice as likely to cause an accident as an experienced motorist. In fact, the Corporation says that one in every five new drivers is involved in a crash within the first two years. As a result, the ICBC and private insurers may restrict or prohibit the use of your vehicle by new drivers even if they are members of your family. The Government also places severe restrictions on the use of vehicles by new drivers - even if the person owns and insures his/her own vehicle. Some of the conditions include a zero tolerance policy with respect to alcohol and prohibition against operating the vehicle between the hours of midnight and 5 a.m. Disregarding these restrictions could void the insurance. Automobile insurance in British Columbia can be divided into two broad coverage areas: Basic Coverage and Optional Coverage. Basic Coverage This is the coverage that protects anyone who is injured in an accident regardless of who is at risk. The three components are Third Party Liability, Accident Benefits, Underinsured Motorist Protection and Inverse Liability. Third Party Liability B.C. law requires that every vehicle owner carry a minimum of $200,000 in Third Party Liability coverage with extra or excess coverage available. B.C. Land and Insurance strongly recommends that you increase this coverage to $2 million or more depending on your driving patterns. The reason is simple. The amount of liability coverage is the maximum ICBC will pay out in the event of an injury claim by someone else. If the courts award higher damages than your limit of coverage, you are responsible for the difference. Both ICBC and our private insurance companies will allow you to increase your liability coverage for a relatively small increase in premium. Accident benefits are designed to provide necessary care and treatment for injuries that might result from a motor vehicle accident. This could include such things as physiotherapy, occupational therapy or private nursing. The benefits also include homemaker services if there is no member of the household able to perform routine chores. They also include funeral costs and other death benefits which are payable to the deceased's family. Benefits of up to $150,000 extend to anyone injured in an accident - a driver, a passenger, a cyclist or a pedestrian. Underinsured Motorist Protection Underinsured Motorist Protection of up to $1 million is included as part of your basic ICBC policy is one of the most important and least understood protections. Extended benefits are available through ICBC or some private insurers. This coverage guarantees appropriate financial compensation for virtually any citizen of British Columbia injured in a motor vehicle accident even if the person responsible for the accident had no insurance or limited coverage. The protection extends to drivers, passengers, cyclists and pedestrians whether or not the individual has ICBC coverage. The qualifying criteria is that at least one member of the household must have a valid B.C. driver's licence. There are some limits to coverage that may apply if the accident occurred outside of British Columbia. Please consult with your B.C. Land & Insurance representative for details. Inverse Liability Inverse Liability is insurance jargon. Simply stated it means that ICBC will pay for all or part of the loss or damage to your vehicle if an accident occurs in a province or state that prohibits or restricts damage claims against the motorist responsible. Optional Coverage In British Columbia all optional automobile coverage can be purchased from either the Insurance Corporation of British Columbia or one of several private insurance carriers such as Family Insurance Solutions and ING Insurance Company of Canada. The coverages offered by the pubic and private insurers are similar. However, the rates charged may vary depending on the vehicle, the region and the experience of the principal driver. Optional Coverages fall into four main categories: Collision, Comprehensive or Specified Perils, Value-Added Insurance and Special Coverages. Collision Collision protection covers the cost of repairing or replacing your vehicle in the event of an accident involving another vehicle, a pedestrian, a cyclist or an object such as a tree or telephone pole. The coverage is limited by the amount of your deductible - unless another driver is totally at fault. If your vehicle is so severely damaged that it cannot be safely repaired, or if the cost of the repairs will exceed the value of the vehicle, your insurer will offer you a financial settlement based on a depreciated industry standard for vehicles of the same year and model. If your vehicle is new, most insurance companies will waive the depreciation and pay you the cost a new vehicle if you had purchased replacement cost coverage.. Comprehensive or Specified Perils Comprehensive or Specified Perils protection covers the cost of repairing or replacing your vehicle in the event the damage is caused by circumstances beyond your control - theft, fire, glass breakage, etc. Comprehensive coverage includes damage to your windshield, theft, vandalism, malicious damage, fire, hail, lightning, earthquake, rising water and impact with an animal. Specified Perils protection is more limited. It covers most naturally occurring damage but does not include damage to your windshield, vandalism or an impact with an animal. The coverage is limited by the amount of the deductible. Neither Comprehensive nor Specified Perils coverage applies if your vehicle is stolen by someone living in your household. There are a variety of coverages available for motorists who are at greater financial risk because of the use they their vehicles. These coverages can be purchased separately or as part of a package depending on the insurance company you choose. The three most popular Value-Added products are: Loss of Use Coverage, Rental Vehicle Coverage and Travel Protection. Some restrictions may apply. Loss of Use Coverage If your vehicle is damaged or stolen, your insurance company will pay the cost of renting a similar vehicle and/or taking alternative transportation such as a taxi or bus. Rental Vehicle Coverage This coverage transfers the benefits available under the terms of your ICBC or private insurance policy to any vehicle you rent in Canada or the United States. With this coverage you never need to purchase costly insurance through rental vehicle companies. Travel Protection Travel Protection is a package of coverages that will reimburse you for the "extra" costs incurred if you are involved in an accident or have your vehicle stolen on the road. It includes the cost of meals and accommodation, rental cars, towing costs, travel expenses and the cost of returning the vehicle home. Emergency Roadside Assistance B.C. Land & Insurance's private Insurance companies also provide Emergency Roadside Assistance as part of their basic policy. This coverage is available as an option through ICBC. Emergency Roadside Assistance will reimburse you for the cost of a service call if have flat tire, your battery dies, you run out of gas or you lock your keys in your vehicle. Reimbursement also applies towing and winching. In addition to these coverages, ICBC has a package of added protections available to their best drivers. Your B.C. Land & Insurance representative will be please to explain these options to you. Special Coverages ICBC offers a number of coverages for people with special needs. Your B.C. Land & Insurance representative will be pleased to explain the conditions that apply. Off-Road Vehicles If you own an off-road, unregistered vehicle such as a snowmobile, trail bike, all-terrain vehicle or camper, you can purchase a package of coverages that include Liability, Collision, Comprehensive or Specified Perils and Accident Benefits. Coverage can be purchased on a daily, monthly or annual basis. Stored Vehicles If you own a registered vehicle that you are not driving, you can protect your investment with Vehicle in Storage coverage. There are a variety of options available. Temporary Operation Permit If you have a valid driver's licence, you can purchase a permit that will allow you to drive an unlicensed motor vehicle or industrial machine from one point to another. Antique or Collector Plates If you own a vintage car you can purchase insurance to allow you to drive it on special occasions such as parades, car club events, weddings and graduations. The vehicle must be at least 30 years old, mechanically sound and restored to original condition. Your B.C. Land & Insurance representative will provide you additional information. Payment Plans ICBC and most private insurers offer motorists the opportunity to pay for coverage on a monthly basis. Your B.C. Land & Insurance representative will provide details and arrange the terms. Moving to British Columbia If you have moved to British Columbia from another province, you have 30 days from the date of entry to purchase license plates and insurance for your passenger or light commercial vehicle. Other commercial vehicles and trailers must register immediately. All vehicles must pass a provincial safety inspection and vehicles operated in Greater Vancouver must satisfy provincial air car standards. If you have moved to British Columbia from another country, the vehicle may also have to pass federal inspection. Your B.C. Land & Insurance representative will help you attain the other documentation you require from your previous insurer. A full-time student from out of province attending a recognized educational institution, can apply for a non-resident's permit which allows the student to operate the vehicle with insurance coverage from his/her home province. Buying or Selling a Vehicle in B.C. In British Columbia, the registered owner of a vehicle is legally responsible for its operation. Therefore it is vitally important that you transfer ownership at the time of sale or purchase. If a reputable, licensed dealer is involved, there are few problems. The dealer has experience with the process and will ensure that the necessary forms and registration checks are completed. However if you are buying a vehicle from a private individual, that person must provide you with the vehicle registration and a signed transfer /tax form. The transfer form is available from your B.C. Land & Insurance representative. The buyer should take the complete form to B.C. Land to complete the transfer of ownership. If you are buying a used vehicle, you should check with the Personal Property Registry in Victoria or a Driver's Service Centre to ensure there are no liens against the vehicle and the ICBC Vehicle Records Unit for a report on any previous accident claims. There are fees for these services. If you have purchased a new vehicle and disposed of the old one of a similar type you can use your old licence plates on your new vehicle for up to 10 days while you arrange for insurance. You must carry a copy of the transfer form and the seller's copy of the vehicle registration. You must also carry a copy of your certificate of insurance and vehicle licence for the old vehicle. Buying a Vehicle Outside BC If you plan to buy a vehicle registered outside of British Columbia, you may temporarily transfer plates from your old vehicle in much the same manner as you would if you were purchasing the vehicle within this province. Your insurance will be valid for 10 days from the date of purchase or until the vehicle is registered in British Columbia - which ever comes first If the vehicle is not registered in the province where it was purchased, you must buy a special permit from that jurisdiction and any others that the vehicle will pass through on its way to British Columbia. You should consult your B.C. Land & Insurance representative for any other conditions which may apply. For more information please contact B. C. Land and Insurance by email: auto@bclandinsurance.com or by phone 250-478-5588. |