Vancouver Car Insurance: All You Need To Know In 2024

Car insurance in Vancouver is predominantly managed by the ICBC (Insurance Corporation of British Columbia), which offers mandatory coverage required by law.

However, you can also opt for optional add-ons from private car insurance companies to tailor your policies to your specific needs. While it may sound complex, we'll break it down for you.

In this guide, we explain everything about car insurance in Vancouver, from mandatory coverage and add-ons to the costs and how you can lower your premiums to get the cheapest auto insurance plans.

Vancouver Car Insurance: A Quick Overview

Unlike most of Canada, British Columbia, where Vancouver is located, has a public insurance system.

• The Insurance Corporation of British Columbia (ICBC) is the crown corporation that provides mandatory insurance.
• While ICBC offers basic insurance, you can purchase optional coverage for things like collision and theft from private insurers.

Vancouver is known for being a congested area. This can impact your car insurance rates as there's a higher chance of accidents in stop-and-go traffic.

You can't buy mandatory insurance directly from ICBC. Instead, you go through a network of Autoplan brokers. Brokers can also help you with optional coverage from private insurers.

You can use our free tool below to explore coverage from car insurance companies based on your province and get free quotes online.

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What is the mandatory coverage for car insurance in Vancouver?

Provided through ICBC, mandatory coverage in Vancouver is called Basic Autoplan coverage. It includes a few key components:

• Third-party liability: Covers injuries and damage you cause to others (people and property) in an accident you are at fault for.
• Accident benefits: Covers medical and rehabilitation costs for you and your passengers, regardless of who is at fault.
• Underinsured motorist protection: This kicks in if the person who caused the accident doesn't have enough insurance to cover all the damages.
• Inverse liability: Covers a portion of damages if you are partially at fault for the accident.

What optional coverage can you get via car insurance in Vancouver? 

Mandatory insurance provides a good foundation, but optional coverage in Vancouver can significantly improve your financial protection in case of an accident or other incidents.

Here are some of your options:

• Collision coverage: Covers repairs to your vehicle if it's damaged in a collision, regardless of who's at fault. This is particularly valuable if your car is newer or holds significant value.
• Comprehensive coverage: Protects your car from damages caused by events other than collisions, such as theft, vandalism, fire, weather events and animal strikes.
• Extended third-party liability: ICBC's basic coverage offers third-party liability protection, but it has a limit. Extended third-party liability increases that limit, protecting you if you cause a serious accident and the damages exceed the basic limit.
• Loss of use coverage: If your car is damaged and undrivable due to a covered incident, this reimburses you for rental car costs while your car is being repaired.
• Rental vehicle coverage: This covers damage you cause to a rental vehicle if you're in an accident.
• New vehicle protection: This can offer enhanced coverage for newer vehicles, often replacing them with a new model in case of a total loss.
• Specified perils coverage: Provides coverage for specific events not covered under comprehensive insurance, like hail damage or earthquakes (depending on your policy).

What is the cost of car insurance in Vancouver?

The average cost of car insurance in British Columbia (including Vancouver) is around $1,199 per year. This translates to roughly $100 per month.

Vancouver car insurance costs can vary significantly depending on the following factors — and can range from $1,000 to over $3,000 annually.

• Your driving record: A clean driving history with no accidents or tickets will result in a lower premium.
• Your age and gender: Young drivers and males typically pay higher rates.
• Your vehicle: The make, model, year and value of your car all influence the cost.
• Your location: Where you live in Vancouver can affect your rates (e.g., postal code).
• The type and amount of coverage you choose: More comprehensive coverage will cost more than basic mandatory insurance.

These are the main factors that can influence Vancouver car insurance prices. Other factors include discounts and how you use your car.

You must compare car insurance quotes online before getting a policy. If you're in provinces like Ontario or Quebec, you can get free quotes using our tool below.

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Which companies offer the best car insurance in Vancouver?

ICBC is the crown corporation that provides mandatory insurance in Vancouver. You can't buy it directly from ICBC, but you go through a network of brokers called Autoplan brokers.

Once you have mandatory coverage, you can purchase optional coverage for things like collision and theft from private insurance companies.

Many companies offer optional coverage in Vancouver. Here are a few of the top companies to get you started, but it's always best to shop around for quotes:

1. Intact Insurance
2. TD Insurance
3. PAFCO
4. Aviva Canada

We have created detailed reviews for each company so you can make an informed and better decision. Check them out by clicking on the list above and get all the information you might need — cost, coverage, pros, cons, exclusions and more. 

How to get the cheapest car insurance in Vancouver?

Vancouver isn't exactly known for being easy on the wallet, especially when it comes to car stuff. The good news is there are ways to outsmart the system and snag a better deal.

First things first, be a driving superstar. No tickets, no accidents, that's the golden ticket to lower premiums. Insurance companies love rewarding responsible drivers.

If you’re up for a little challenge, consider a higher deductible. This means paying a bit more upfront if you need to make a claim, but it lowers your monthly payments. Just make sure you can swing it if something happens.

Here are some other ways to save:

• The less you drive, the less you pay, that's the logic here. Think carpooling, cycling or using the bus when you can. Every kilometre saved adds up.
• Your car matters too. Safer, fuel-efficient vehicles with lower repair costs are insurance companies' sweethearts, translating to lower rates for you.
• Bundle up! If you're a homeowner, insure both your car and house with the same company. Many insurers offer discounts for bundling policies.
• Paying your premium annually can sometimes score you a discount too, think of it as a reward for responsible budgeting.
• Look into usage-based insurance. These plans track your driving habits (think miles driven, time of day) and reward safe drivers with sweet discounts.

Finally, there are hidden discounts out there. Good student? Low-mileage driver? Ask your insurer. Sometimes belonging to professional groups can even snag you a discount.