Changes to Your Vancouver Auto Insurance You May Have Missed
by adminIn May 2021, ICBC quietly rolled out changes to its basic auto insurance plans. The goal of these changes was to help reduce the cost of auto insurance for most drivers while still providing essential basic coverage.
Many Vancouver area drivers who are already paying for additional optional auto insurance probably won’t notice a difference in coverage. But those relying on basic coverage alone may no longer have all the protection they once did.
While the net effect of the new ICBC Basic Vehicle Damage Coverage (BVDC) and Enhanced Accident Benefits (EAB) coverage – which dramatically reduces litigation and legal costs – is a reduction in insurance premiums and enhanced accident recovery care, drivers may be surprised to learn they no longer have all the insurance features they once had.
Also Read: Why you Should Have West Vancouver Auto Insurance
As a result, many new optional insurance coverage products have emerged to fill the gaps left by the new ICBC model. Here is a brief outline of what’s changed and what you can do to ensure you remain fully protected.
Ban on Suing Drivers, Occupants, and Vehicle Owners
One of the most significant changes under the new ICBC BVDC is a near-complete ban (except for a few specific exceptions) on suing vehicle owners, occupants, or operators for damages, injuries, or death suffered from an accident.
Instead, ICBC has moved to a first-party insurance model. Combined, BVDC and EAB will provide all ICBC policyholders with reliable coverage without engaging with third-party liability providers.
Also Read: How to Save the Most Money on Auto Insurance in Vancouver
Drivers concerned that BVDC and EAB will not provide adequate protection are encouraged to speak with their Vancouver auto insurance brokers to explore their optional coverage options. For example, high-income earners can take out an Income Top-Up Policy under the new plan, which will protect above and beyond the $100,000 in coverage currently provided under EAB.
Hit and Run Coverage no Longer Included in Basic ICBC Plan
Unless you have read the fine print or spoken to your Vancouver auto insurance broker, you may not know that your basic coverage no longer protects against hit and run accidents unless you can identify the responsible driver.
Drivers are now required to purchase additional hit and run coverage, either by purchasing standalone hit and run protection or optional collision coverage. Those opting for standalone hit and run coverage will be subject to a $750 deductible.
Off-Highway Coverage for Non-Standard Vehicles no Longer Covered
Also excluded in the new ICBC basic plan is coverage for non-standard vehicles, like farm equipment and golf carts. Operators exposed to risk from these types of vehicles will now purchase separate Off-Highway Third Party Liability Coverage.
Other Optional Insurance Coverage Products
Drivers can continue to purchase optional insurance products based on their needs and risk tolerance. Some common optional insurance products include:
- Collision – one of the most frequently requested optional coverage policies, Collison coverage will provide protection even if you are found to be at fault or partially responsible for an accident or vehicle damage. The collision also provides hit and run coverage, something no longer covered under the Basic plan.
- Comprehensive – protects against non-accident-related damages, like theft, vandalism, or extreme weather events.
- Loss of Use – will provide coverage for a rental vehicle or other transport while you’re without your vehicle
- New Vehicle Replacement Value – if your car needs to be written off, NVR will provide you with the option to replace your car with a new year model, a vehicle of equal value, or a cash payout.
If you have any questions about the new ICBC Basic coverage or want to ensure you have adequate protection under these recent changes, Prime Insurance, your local Vancouver auto insurer, is here to help.