Learn all about car insurance in Vancouver.

Like the rest of B.C., Vancouver operates under a public car insurance system. The car insurance system in B.C. is owned and operated by the provincial government, which means that mandatory coverage must be purchased through the Insurance Corporation of British Columbia (ICBC). This means that insurance companies in Vancouver don’t sell basic?? car insurance.

However, you can still purchase additional coverage, such as fire, theft, and collision coverage, from private insurers.

The price of car insurance in Vancouver can vary due to a number of factors. Drivers in B.C. are known to pay more for car insurance under their public system than any other province in Canada. See below for a car insurance estimate for Vancouver residents.

Average auto insurance rates by province

Calculating your automobile insurance rates in Vancouver can be complicated. You may have come to this page looking for a Vancouver car insurance calculator. However, a basic calculator likely won’t take into account the many considerations that go into determining your rate. Just like any insurance provider, the ICBC uses a number of factors to calculate your insurance premiums. Here are some to consider:

Your licence level: Not having a full licence will cause your premium to be higher. Conversely, having a full licence has a positive effect on your car insurance rates. New drivers looking for car insurance in Vancouver may see higher rates due to this. This is also why students who need car insurance in Vancouver may face challenges securing an affordable rate.

Your mileage: How much you drive every day is another major contributor to what you’ll pay in auto insurance rates. Someone that’s driving 30-45 minutes to and from work each day will pay more in car insurance than someone who only uses their car to run the occasional errand.

Your postal code: Insurance companies determine your rates partially based on the postal code you live in. If your area generally has a higher concentration of claims, you may find yourself paying higher rates than people living in the next postal code over.

Your driving record: Your driving history is another factor that will weigh heavily on how much you pay for car insurance. Someone with an accident or multiple tickets on their record will pay more for insurance than someone with a clean record because they’ll be deemed higher risk. Having little driving experience (approximately less than 10 years), previous claims, and driving convictions will push your car insurance rates up. For this reason, car insurance rates for high-risk drivers in Vancouver may be higher than the average rate.

Your age: Like it or not, the younger you are, the more you’ll pay for car insurance (rates level out by age 30). This is because you’re considered a high-risk driver until you’ve built up a driving history that demonstrates the opposite. There isn’t much you can do about it, but at least you’re not alone. Young people across Canada face the same high auto insurance rates when compared to the more experienced drivers they share the road with. This is another reason why the ICBC may not give new drivers in Vancouver a cheap rate on their car insurance.

However, being young isn’t the only way age can impact your car insurance rates. Adults between the ages of 50 and 70 get some of the lowest car insurance rates in Canada. If you belong to this demographic, you probably have a long history of being insured and you might even have bundled your home insurance policy with the same provider of your auto insurance. After age 70, rates begin to creep up because people in this age group are statistically more likely to need to file a claim and need longer to recover from an injury. Therefore, seniors in Vancouver who hold car insurance policies may have trouble getting cheap rates.

Your policy: How much you pay in auto insurance is impacted by how much auto insurance you buy. There are a number of different policies to choose from in Vancouver, but everyone in Canada is required to have at least a basic level of car insurance.

Your insurance history: In addition to having a poor driving history, your insurance history can also play a role in determining your rates. If you’ve filed multiple claims or have a history of missing payments, you may be given a higher rate. Furthermore, new immigrants who need car insurance in Vancouver may also face challenges because they have no Canadian insurance history at all.

However, this can be mitigated by asking your last insurance company to provide a reference for you when switching to a new provider.

Vancouverites searching for car insurance should also note that as of September 2019, the ICBC moved to a more driver-focused model. This means that your personal driving and insurance history will be more important in calculating your rate than external factors.

Obtaining affordable car insurance in Vancouver depends largely on whether you purchase additional coverage. Luckily, car insurance brokers in Vancouver are well-versed in ICBC policies and requirements and also what types of optional coverages would/wouldn’t benefit you. Scroll down to learn more.

Third-party liability and accident benefits - This is a basic auto insurance policy. You must carry this type of insurance to legally operate a car in Ontario. It protects your liability should you injure someone else in a collision and pays for your medical costs. You must have liability benefits worth at least $200,000 and accident benefits worth at least $50,000.

Collision - Covers costs if your car is damaged in a collision.

Comprehensive - Covers costs if your car is damaged by things other than a collision, including theft, vandalism, or falling objects.

Specified perils - Protects your car from insurable risks that you specify you want in your policy. If it’s not written in the policy, it isn’t covered.

All perils - A hybrid between collision and comprehensive insurance. Offers coverage if your car is damaged in a collision or by any other insurable risk.

You can customize your car insurance quote to reflect any type of coverage.

• Growing population: Vancouver was the fastest-growing Canadian municipality throughout the 1900s, beating out even Brampton. Cities with higher population density tend to pay higher rates for car insurance.
• Difficult winter driving conditions: Driving in Vancouver in the winter can be more tricky than driving in provinces that are used to getting a lot of snow: Vancouver is generally unprepared when it does snow. Being in a weather-induced collision will likely result in higher car insurance rates.

While it’s true that B.C. operates on a public car insurance system, that doesn’t mean there aren’t steps you can take to secure cheap car insurance in Vancouver.

• Take a driver’s education course: A certificate of completion demonstrates to your insurance company that you take driving safety seriously and can reduce your premium. 
• Enroll in a telematics program: Depending on how much — and how well — you drive in Vancouver, you may be able to reduce your premiums. A telematics program can help you do just that by recording your mileage and your driving habits for your insurance company so you can qualify for discounts. The only caveat is that you’ll need to demonstrate good driving habits in order to get the discount at renewal.
• Bundle your home and auto insurance together: Lastly, a common way to qualify for car insurance discounts is to bundle your home and auto insurance together. Most insurance companies will reward customers who hold more than one policy with them. To find out if you qualify, ask your broker or agent about this option