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What impacts the cost of your insurance?

August 01, 2023

Different factors go in to calculating the cost of Basic and Optional auto insurance — from your years of driving experience and your crash history to where you live in the province.

About Optional insurance premiums

The age, make, model and other safety features of your vehicle, along with its repair and potential replacement costs, all factor in to the cost of your Optional insurance, such as collision and comprehensive coverage.

Collision and comprehensive coverages are available to purchase from a variety of insurers, including ICBC. Generally, these coverages tend to cost more for higher-end vehicles because they are more expensive to repair or replace.

Increasing vehicle repair and replacement costs is a major issue facing all auto insurers these days, and ICBC is no exception. Vehicles are becoming safer and more complex, with crash avoidance technologies, cameras and onboard computer systems. All these things are great — they aim to keep us safer and the technology is really exciting — but it also means our vehicles are becoming increasingly expensive to repair, with many manufacturers using proprietary parts.

We constantly monitor market conditions, collision rates and industry trends and make adjustments as needed, while keeping insurance rates as affordable as possible for British Columbians.

About Basic insurance premiums

ICBC Basic Autoplan insurance is the mandatory coverage you need for a vehicle in B.C. Like any insurer, we set premiums based on a policy's risk — that is, the likelihood and cost of a claim in the future. Keeping that in mind, there are many factors that affect a customer’s Basic insurance premium, including where they live, their crash history, how they use their vehicle and who else might drive it.

ICBC is the sole provider of Basic insurance in British Columbia and rates are regulated by the British Columbia Utilities Commission (BCUC). In 2022, we submitted an application asking for no overall change to Basic insurance rates for two years, and the BCUC has approved the application on an interim basis. If the BCUC fully approves our application, it means there will be no change to Basic rates until April 2025, and no overall increase to Basic rates in B.C. for five years, as our last Basic insurance increase was back in April 2019.

We’re always looking for ways to keep insurance rates more affordable for our customers, and you can, too. Remaining crash and conviction free will help keep your premiums from increasing and making the most of eligible discounts and savings can help you lower your insurance costs. Low-kilometre and distance-based discounts, and those for safety and anti-theft technology, as well as savings for experienced drivers and seniors, all add up when it comes to getting you on the road.