Car insurance for newcomers in BC

[AndyUK]

I'll be landing in Vancouver in a few weeks and although I don't intend to get a car for a while, I would like to at least prepare for it mentally ;-)

I know that insurance rates for newcomers are insanely high but can someone give me a rough figure? I know it will depend on the car and the driver but any info would be appreciated.

Also, are there any car insurance comparison websites for BC? Or is it a monopoly? I found a few comparison websites but they exclude BC.

And finally, are there any insurance companies that would consider my driving record (UK driving licence held for 20+ years, 10+ years of documented no claims discount - never had any claims, but 10+ is the maximum bracket)? From what I gathered the answer is no, but just wanted to double-check.

 

[AndyUK]

Awesome, thank you. That's helpful

 

[Simba112]

Awesome, thank you. That's helpful

When you go to ICBC to exchange your UK license to BC ones, they will consider your driving history and your age, plus any claim against you. I am not sure how exchange reciprocal works but i know someone who exchanged his Japanese license and they took into consideration age factor, drivers history and vehicle you are driving...Estimate would be roughly $2,600 to $4,000 a year...

 

[Simba112]

Maybe someone here who has arrived in BC as you will be doing will have some first-hand knowledge. I can provide a bit of info.

In BC (and Manitoba also), the government has a monopoly. In BC, the government insurer is the Insurance Corporation of BC. I believe that all motorists must buy their basic insurance from ICBC. Basic insurance is for the statutory minimum of $200,000 in liability coverage. That covers damage incurred by the innocent party(ies) if an accident is your fault.

It used to be that all motor vehicle insurance had to be purchased from ICBC. I believe it's now the case that you can buy any insurance coverage beyond the statutory minimum from private insurers. One of those is the BC Automobile Association (BCAA). I see advertising online for TD insurance. Excess insurance can include increased liability insurance ($5 million is not unusual), collision coverage (for damage to your vehicle when you are at fault), there there are things like "comprehensive" and "all perils", etc. to cover things like theft, a tree falling on you car, vandalism, etc.

ICBC has a website and you might get some info there. You may be able to contact ICBC and get some kind of estimate. Just a guess, but I would estimate your basic coverage at about $1,000 per annum.

ICBC provides a claim free discount. Not sure of present terminology. I think it's still "Roadstar" status after 10 years claim free. At that point, you get a 40% discount. I doubt they would give you credit for claims free status in another jurisdiction, but ya' never know. I base my $1,000 estimate on the fact that I get the 40% discount and my basic insurance is about $500 a year.

I can't say about insurance comparison sites for BC, but they would relate only to excess coverage, if they exist.

Basic coverage could be 1,000 or 1,500 but that does not include Third Party Liability, Collision, Comprehensive and Road side plus etc...That plus other factors can push your policy to $2,500 and above. I would also advise a coverage of $2,000,000 Third Party Liability NOT $200,000 as advised. I am aware of case, someone was at faulty and hit Specialist Doctor who was hospitalized and was away from work. Specialist Doctors have higher salary close to half a million, plus other damages the other guy's "Third Party Liability" couldn't cover. Most people choose lower third part liability to pay less on insurance policy, but if you live in Metro Vancouver, be on the safe side....Net-worth Individuals are high compared to other provinces

 

[Simba112]

That's interesting about the Japanese experience. If Japan has state insurance and you can get a letter from that insurer attesting to claims-free status over so many years, that might, I suppose, be of some value. But, with private insurance, and many possible insurers, how can you know to a certainty that nothing is being hidden? Sure, age can be taken into account. That won't change from country to country. Also, can ICBC assume that driving conditions are comparable, etc. When I moved from Ontario to BC, I got no credit for never having had a claim in Ontario. I started at zero discount and had to work up to the 10-year max in BC. Maybe they are more lenient now.

As for vehicle being driven, certainly it will cost more to place collision coverage on a Ferrari than on a Honda Civic. I think the coverage for theft also gets rated depending on make etc. Some are more targeted by thieves than others.

Absolutely you are right. Since ICBC Monopolize Auto Insurance in BC, it is hard to understand their calculation basis, lots of things dont make sense. To answer your question, how they know nothing is being hidden, may be they have online access with authorities they signed agreement with to pull some basic information, but i am not 100% sure. I was driving for over 20yrs, when i moved to BC I did both Knowledge test and Road test. They didnt consider my driving experience but when they changed law to no faulty liability, they considered my age. At first i was paying 3,600 a year but went down to 2,600 of course after driving here for some time without losing points. If you drive car with auto collision detective technology you also save....I lived in New Brunswick, and used to pay $80 a month through TD Auto Insurance, but I guess there is no other option in BC than ICBC. If you have extended warranty, still they will coordinate to cover claims, so whats a point of having it anyway, if at all i can have Road Side Assistance from BCAA...

 

[Simba112]

Please note that I did not advise $200,000. I simply set out the minimum required by the Insurance (Vehicle) Act.

Even $2 million won't cover all eventualities. I have seen a number of judgments exceeding $4 million. Here is but one example:

QUANTUM ASSESSMENT — Multiple injuries • Loss of future earnings • Future care costs • Loss of opportunity for family income • Loss of interdependency • In-trust awards — Plaintiff, then 21, suffering widespread and severe multiple injuries in high speed head-on collision killing the 3 others involved — Plaintiff spending 4 weeks in an induced coma and undergoing many surgeries to repair serious back, shoulder and abdominal injuries — Plaintiff also suffering PTSD and depression — Plaintiff’s injuries making it inadvisable for her to become pregnant and to give birth — Court awarding total damages of almost $4 million, including non-pecuniary damages of $367,000, damages for loss of capacity to earn income and loss of interdependency of $2.45 million, damages for future care costs of $882,066 including $100,000 for surrogacy fees and $110,000 for loss of homemaking capacity — Court also making an in-trust award of $50,000.

Wilhelmson v. Dumma S.C., Sharma J., 2017 BCSC 616, Vancouver M135089, April 13, 2017 , 109pp.

That judgment was 6 years ago. In 2023 dollars, the amount would be about 20% higher.

Of course, all of this must be tempered with a dose of practicality. If you are the proverbial man of straw and judgment-proof, why carry millions in liability insurance? At the same time, I would observe that the premium cost to increase by 1 million to 2 million, etc., is not really all that much.

Another change is that, a couple of years ago, ICBC eliminated the tort system as it relates to personal injury claims. Now, except in limited circumstances, you can no longer hire a lawyer and litigate your claim and have a judge or jury assess quantum. That should see a reduction in rates. I think it has started already. Many personal injury cases are still going through the courts. I see a handful every week. But those are cases that were in the pipeline when the change came in and the change was not made retroactive, since retroactive legislation is far from the norm in Canada.

The Trial Lawyers Association of BC cried foul when the change was made. But it was judges and lawyers who killed the goose that laid the golden egg. Personal injury awards became equivalent to a lottery win. In the judgments going through right now, it's not unusual to see $1 million awards for minor rear-end collisions where there is little or no visible damage to the vehicles involved. Totally nuts.

Thank you for the detailed elaboration. BC is wonderful place to be, except housing and auto insurance system is crazy. My apology to suggest you advised

 

[AndyUK]

Thank you both - really helpful info

The figures you provided are roughly what I expected - probably around 2k if I get a (very) cheap car or maybe some of my driving experience will be considered, 3-4k+ for something mid-range... a bit more than equivalent of 600 CAD I pay per year for fully insured (plus business use, plus my wife can use it too) sports BMW
Oh well, I can deal with it as in exchange I will have the mountains and the ocean on my doorstep

 

[foodie69]

When I was a newcomer many many years ago, I paid $150 a month in Vancouver

 

[Kiva667]

There are a lot of factors that go into BC auto insurance cost. Me, I pay $529 per year to insure my classic BMW (my daily driver) and this includes collision coverage. But they factor in my age and the mileage I drive.

When I moved here from abroad I still had an American DL with which BC has reciprocity, so they knew about my accident-free record in the USA.

You might want to check if BC has reciprocity with the UK. If they don't, get a copy of your Brit drivers record and bring it with you; this may or may not help with insurance cost.

 

[Simba112]

There are a lot of factors that go into BC auto insurance cost. Me, I pay $529 per year to insure my classic BMW (my daily driver) and this includes collision coverage. But they factor in my age and the mileage I drive.

When I moved here from abroad I still had an American DL with which BC has reciprocity, so they knew about my accident-free record in the USA.

You might want to check if BC has reciprocity with the UK. If they don't, get a copy of your Brit drivers record and bring it with you; this may or may not help with insurance cost.

Are you saying you are paying equivalent of $43 a month for car insurance in BC

 

[Kiva667]

Are you saying you are paying equivalent of $43 a month for car insurance in BC

That is correct. This includes a 10% discount for driving less than 5000 kms per year. Also, my age, and spotless driving record over many years.

I pay once yearly - and that saves a few dollars also. Plus I live on Vancouver Island so insurance costs less than it would in the lower mainland.

 

[Simba112]

That is correct. This includes a 10% discount for driving less than 5000 kms per year. Also, my age, and spotless driving record over many years.

I pay once yearly - and that saves a few dollars also. Plus I live on Vancouver Island so insurance costs less than it would in the lower mainland.

So you have leisure insurance not commuting? Based on max km a year?… that explains. Because on average a 58yrs old with 42yrs of accident free driving experience would pay $977 a year.

https://www.icbc.com/about-icbc/newsroom/Pages/2022-dec08.aspx

 

[Kiva667]

So you have leisure insurance not commuting? Based on max km a year?… that explains. Because on average a 58yrs old with 42yrs of accident free driving experience would pay $977 a year.

https://www.icbc.com/about-icbc/newsroom/Pages/2022-dec08.aspx

Correct again - I have leisure insurance, not commuting. Frankly I'm not that impressed since in the USA a stated value policy for my car only cost half of what I now pay. I should add that the American policy certified my 1967 auto as a collector car. Easy to get south of the border but here you have to jump through a bureaucratic maze of hoops to get similar collector car insurance.

 

[foodie69]

Correct again - I have leisure insurance, not commuting. Frankly I'm not that impressed since in the USA a stated value policy for my car only cost half of what I now pay. I should add that the American policy certified my 1967 auto as a collector car. Easy to get south of the border but here you have to jump through a bureaucratic maze of hoops to get similar collector car insurance.

In order to qualify for collector license and insurance status, owners must have a vehicle registered in British Columbia with regular insurance.
Typically, the cost of insuring a collector vehicle in British Columbia is as low as $300 a year. The vehicle must be in good original condition, used for pleasure driving only and cannot be driven to work.

 

[Kiva667]

In order to qualify for collector license and insurance status, owners must have a vehicle registered in British Columbia with regular insurance.
Typically, the cost of insuring a collector vehicle in British Columbia is as low as $300 a year. The vehicle must be in good original condition, used for pleasure driving only and cannot be driven to work.

There is a lot more to getting collector plates than this...