BC dealer demo-plate rules: what keeps the coverage valid.
ICBC requires written authority for every demo drive — and a plate used outside the rules can void not just the demo coverage but the Garage Policy behind it. Here is what the rules actually require, in plain language.
One misused demo plate can void the Garage Policy behind it.
A demo plate feels routine — hand over the keys, let the customer take it for the weekend. But ICBC sets specific conditions on demonstration-plate use, and stepping outside them can void the coverage and the Garage Policy that sits behind it. Most dealerships learn that after a claim. The point of this page is to learn it before.
What demonstration-plate use actually requires.
Written authority — every drive
ICBC requires written authority for every demo drive: sales staff, prospective buyers, anyone who isn’t on payroll. There is no exception for “just a quick one around the block.”
The 48-hour limit
Use beyond 48 hours by a prospective purchaser falls outside the rules. A weekend test drive that quietly stretches into the next week is exactly the kind of use that causes problems at claim time.
Repeat use to the same customer
Repeat use to the same customer more than twice in a calendar year can void the coverage. If a buyer keeps coming back for another extended drive, that needs tracking.
Payroll and personal use
Letting a non-payroll driver use a demo plate for personal purposes can void the coverage. Demo plates are for dealership operations — not a family second car for the weekend.
Financial-responsibility cards
Demo-plate use carries financial-responsibility requirements. Keeping that documentation straight and current is part of staying compliant, not an afterthought.
Whose coverage is on the line
When a demo plate is misused, it’s the dealership’s coverage and Garage Policy that answer for it — not the driver’s personal insurance. The exposure lands on you, which is exactly why these rules are worth getting right.
The written-authority log.
The log is where most dealerships fall down. ICBC requires written authority for every demo drive, which means an actual record — not a verbal “we mean to.” It doesn’t have to be complicated: driver name, whether they’re on payroll, the date out and back, and the vehicle.
Kept consistently, that log is the single best protection against a demo-plate problem turning into a voided claim. We help dealers set one up that staff will actually keep — simple enough that it gets used on a busy Saturday, not just in theory.
Four questions worth asking before your next demo drive.
Demo-plate questions dealers ask.
What happens with demo-plate compliance? We're not great at the written-authority log.
Most dealerships aren't. ICBC requires written authority for every demo drive — sales staff, prospective buyers, anyone who isn't on payroll. Use beyond 48 hours, repeat use to the same customer more than twice in a calendar year, or letting a non-payroll driver use a demo plate at all can void the coverage.
Do I need written authority for sales staff too, or just buyers?
Everyone. ICBC requires written authority for every demo drive — sales staff, prospective buyers, and anyone not on the dealership payroll. The simplest way to stay compliant is a single written-authority log that captures every drive, every time.
Not sure your demo-plate use is inside the rules?
We’ll review it — written authority, the 48-hour limit, payroll use, and the log — as part of the free APV4 Gap Audit. No switching, no obligation. We put what we find in writing and hand it to you.
Call 604-582-0557See also APV4 Garage Policy and For Auto Dealers.