In British Columbia, every vehicle must carry Basic insurance from ICBC, the public insurer. Since May 1, 2021, Basic follows the Enhanced Care model: injury benefits are paid regardless of fault and most lawsuits are removed. Optional coverage, such as higher liability and collision, can be bought from ICBC or from private insurers.
Last updated: October 28, 2026
- Basic insurance is mandatory and sold only by ICBC.
- Basic includes $200,000 of third-party liability, Enhanced Care injury benefits and vehicle damage coverage when you are not at fault.
- Collision, comprehensive and higher liability are optional and can be bought from ICBC or private insurers.
- Under Enhanced Care, injury benefits are paid regardless of fault and most lawsuits are removed.
- ICBC announced that Basic rates stay frozen through the 2026-27 fiscal year.
- Your premium depends mainly on driving experience, crash history, vehicle, use and location.
BC’s system is different from Ontario’s or Alberta’s, where private insurers sell all coverage. Understanding the split between Basic and optional coverage is the key to comparing prices in BC.
Basic insurance: mandatory and sold only by ICBC
When you plate a vehicle in BC, you buy Basic insurance from ICBC through an Autoplan broker or online. Basic includes:
- Third-party liability of $200,000 (most drivers add more through optional coverage).
- Enhanced Care coverage for injuries: care and recovery benefits for anyone injured in a crash in BC, including the at-fault driver.
- Basic Vehicle Damage Coverage, which repairs your vehicle up to $200,000 when you are not responsible for the crash.
- Underinsured motorist protection and other basic protections.
What Enhanced Care changed
Under Enhanced Care, injured people receive benefits from ICBC whether or not they caused the crash. According to BCAA’s summary of the change, care and recovery benefits no longer have an overall maximum, and wage-loss benefits are set at 90% of net income, based on gross income up to $100,000. In exchange, the right to sue an at-fault driver is largely removed, with limited exceptions.
Optional coverage: ICBC or a private insurer
Optional coverage is where you have a choice of provider. It typically includes:
| Optional coverage | What it covers |
|---|---|
| Extended third-party liability | Liability above the $200,000 in Basic, commonly $1 million to $5 million |
| Collision | Repairs to your vehicle when you are at fault or partly at fault |
| Comprehensive | Theft, vandalism, fire, glass, hail and similar damage |
| Hit-and-run vehicle damage | Moved from Basic to optional coverage under the new model |
| Loss of use, rental, roadside | Endorsements that vary by insurer |
Because private insurers compete only on optional coverage, it is worth comparing ICBC’s optional price with those of private insurers at each renewal.
How your premium is calculated
ICBC uses a driver-based rating system. Your premium depends mainly on your driving experience and crash history, the vehicle, how and where it is used, and your location in BC. At-fault crashes and certain driving convictions increase premiums, and high-risk drivers may also pay additional penalties on their driver’s licence. ICBC has kept Basic rates frozen for several years; in October 2025 it announced that the freeze would continue through the 2026-27 fiscal year.
How to lower your BC car insurance cost
- Compare optional coverage between ICBC and private insurers.
- Choose the right deductible for collision and comprehensive.
- Pick the correct rate class: pleasure use is cheaper than commuting or business use, but it must match how you actually drive.
- Report low annual distance if it applies and your insurer offers a discount.
- Add listed drivers carefully: inexperienced drivers on your policy affect the price.
- Keep a clean record: crash-free years build discounts over time.
Buying a car in BC
Check the insurance cost before you buy, especially for vehicles with high theft or repair costs. Then add it to your monthly budget with our car payment calculator and the guide how much car can I afford in Canada. For other provinces, see comparing quotes in Ontario and average car insurance cost in Alberta.
Step by step: insuring a vehicle in BC
- Register and plate the vehicle through an Autoplan broker or online; Basic insurance is purchased at the same time.
- Choose your rate class and use: pleasure, commuting or business, and the principal operator.
- Decide where to buy optional coverage: ICBC or a private insurer. You can buy Basic from ICBC and optional from another company.
- Choose deductibles for collision and comprehensive.
- Keep your documents: proof of insurance must be in the vehicle.
Moving to BC from another province
New residents generally need to get a BC driver’s licence and register and insure their vehicle in BC within a set period after moving. Bring your driving history from your previous insurer: claims-free experience can help you qualify for a lower premium. Check the current requirements with ICBC before you move.
Compared with other provinces
BC, Saskatchewan and Manitoba use public insurers for basic coverage, and Quebec uses a public plan for bodily injury through the SAAQ. Ontario, Alberta and the Atlantic provinces rely on private insurers for all coverage. Under BC’s model, the price you compare between companies is only the optional part of your policy.
Whichever provider you choose for optional coverage, review your policy each year at renewal. Your driving record, vehicle and kilometres change over time, and so do the prices offered by ICBC and private insurers.
Frequently asked questions
Can I buy Basic insurance from a private company in BC?
No. Basic insurance is only available from ICBC. Private insurers can sell optional coverage only.
Am I covered if I cause a crash in BC?
Under Enhanced Care, you receive injury care and recovery benefits even if you are responsible. Damage to your own vehicle when you are at fault is covered only if you bought collision coverage.
Can I still sue after a crash in BC?
The right to sue is largely removed under Enhanced Care, with limited exceptions. For a specific case, consult a lawyer or ICBC.
General information only, not insurance or legal advice. Coverage amounts and rates can change; confirm details with ICBC or a licensed Autoplan broker.
