If this is your first brush with auto insurance in British Columbia, then you might not be aware that auto insurance is required by law.
Here is a quick overview of the insurance requirements in the province of British Columbia and the coverage options you may want to consider.
Insurance Laws and Penalties
Every person who owns and operates a motor vehicle must meet a set of minimum coverage requirements. These standards are outlined in the Motor Vehicle Act.
To drive in BC, you must first have coverage provided by the Insurance Corporation of British Columbia (ICBC), the government insurer. If you’re stopped by a police officer and discovered to be driving without insurance, you could face a minimum fine of $598.
Meeting the minimal insurance requirements ensures you can legally drive, but it is not an indication that you are sufficiently covered. Most people will choose to purchase additional insurance to avoid being financially exposed in the event of an accident.
Minimum Required Coverage
In British Columbia, all drivers are required to have the following through Basic ICBC coverage:
Basic Vehicle Damage coverage: Covers the repairs of your vehicle when other drivers are responsible – instead of recovering the cost of repairs from the insurance policy of the driver responsible, your own insurance will cover you. Note you will need collision coverage to cover the cost of repairs if your vehicle is worth over $200,000, or if you are responsible for a crash.
Third-Party Liability coverage: If you cause an accident that results in non-vehicle property damage, or the accident occurred out province, then you will be covered up to $200,000.
Enhanced Care: Covers Every B.C. resident for medical costs, wage loss, and more if you’re injured in a car accident. These benefits are available to drivers, passengers, cyclists, and pedestrians, even if you’re at fault for the accident. If you’re unable to work due to an accident, ICBC will cover 90% of your net income. However, income coverage is capped on individuals with gross salaries of $113,000 or higher.
While these are the minimum requirements under ICBC, individuals can opt to purchase optional coverage through ICBC or a Private insurance company. Please contact your insurance broker for more details.
Other Coverage Options
If you only purchase the minimum required insurance, you may end up having to pay for your own repairs. Damage to your vehicle resulting from a collision is only covered when the other driver is at fault.
