If you drive a car in BC, you’ll need a car insurance policy. But unlike many other provinces across Canada that allow drivers the freedom to get insurance from any insurer they like, BC requires that drivers obtain their auto insurance policies from the Insurance Corporation of British Columbia (ICBC).
For this reason, BC drivers don’t have the luxury of shopping around for the lowest rates. As such, drivers have little recourse but to just accept the rates they’re given by ICBC.
That said, ICBC has recently made some changes that will help significantly reduce the annual premiums that BC motorists pay for their car insurance through the new Enhanced Care coverage program.
Let’s take a closer look at this rate reduction and how much you can expect to save.
Who Is The ICBC?
ICBC is a provincial Crown corporation in BC that was developed in 1973 to provide universal car insurance products to drivers in the province. It promises to provide ample coverage at competitive prices. The agency is overseen by a CEO, board of directors, and management team who are guided by public sector regulations.
Changes To BC’s Auto Insurance
In 2021, ICBC switched over to a no-fault insurance model that will help to reduce expensive legal costs from the insurance system. In turn, this will slash premiums for motorists.
According to ICBC, a litigation-based insurance system results in unnecessary legal fees, which contributes to significant increases in insurance rates in BC. Car insurance rates have been the highest in BC compared to other provinces and territories as a result.
By moving to a no-fault insurance model, ICBC promises to provide lower auto insurance rates to drivers in BC. On May 1, 2021, car insurance rates decreased thanks to the recently implemented Enhanced Care program. On average, most auto insurance plans saw a $400 reduction, which equals approximately 20% lower fees compared to 2020.
Last year, the average annual rate for a car insurance policy in BC was $1900. Now, it’s $1500. Drivers don’t need to make any changes to their policies in order to realize these savings. Instead, they’ll be automatically applied.
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Difference Between The New Auto Insurance And The Former
To help you better understand how the old and new systems differ from one another, consider the following side-by-side comparison chart:
| Old System | New System |
| Rate increases every year due to legal expenses | 20% savings in rates |
| Maximum $300,000 in care and recovery coverage | No limit for care and recovery |
| Maximum $740/week in wage loss payments | Maximum 90% of net income in wage loss payments |
| One-time settlements for future medical care paid for | Medical care costs covered anytime for as long as required |
| Up to 33% of settlement goes to attorneys | 100% of compensation goes to you |
| Suing for compensation only possible if you’re not at fault | No legal action, with exception of offenses under Criminal Code |
Enhanced Care Refunds
Under the new system, drivers can get a one-time, pro-rated refund, which is the difference between what you paid when after your last policy renewal (before May 1, 2021) and the lower price of Enhanced Care, for the time period that your insurance policy extended after May 1.
About 3.6 million refunds were made averaging $150 each, totalling approximately $594 million.
How Will I Get My Refund?
Refunds were issued between May to July 2021. The refunds made were based on how your premiums were paid, including the following:
- ICBC payment plan
- Credit card
- Cheque
- Direct deposit
How Are These ICBC Savings Possible?
By removing the litigation aspect of the previous car insurance approach in BC, much less money will need to be spent on legal fees to sue drivers. This amounts to millions of dollars saved every year.
More specifically, it’s anticipated that BC drivers will save over $1.5 billion in the first full year that the new Enhanced Care platform operates. Plus, the new program will help keep rates stable, rather than having rates rise every year as was the case before the Enhanced Care program was implemented. Instead, BC drivers can see average savings of 20% for coverage.
Further, injured drivers and passengers can get higher cost coverage in care and recovery benefits.
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ICBC Insurance FAQs
When will the Enhanced Care coverage take effect?
Does “no-fault” insurance only exist in BC?
Why is ICBC reducing car insurance rates?
What happens if you get into an accident outside of BC?
Final Thoughts
Car insurance rates are already high enough. Thanks to the new Enhanced Care program, BC drivers will likely see significant declines in their annual premiums.
