Every driver in British Columbia must purchase basic auto insurance through ICBC (Insurance Corporation of British Columbia). In 2021, BC transitioned to a new Enhanced Care model that fundamentally changed how accident benefits work. This guide explains how ICBC works in 2025, what Enhanced Care covers, your optional coverage choices, and how your driving record affects what you pay.
ICBC is BC's public auto insurer — a Crown corporation operated by the provincial government. Unlike Ontario, Alberta, or the Atlantic provinces, BC does not allow private insurers to compete for mandatory basic auto coverage. All BC drivers must purchase their Autoplan basic insurance through ICBC via an Autoplan broker.
Optional coverages (extended third-party liability, collision, comprehensive, specified perils) can be added through ICBC at the same Autoplan broker, or purchased from approved private insurers like Intact, Aviva, or Wawanesa for potentially competitive rates.
On May 1, 2021, ICBC replaced its previous tort-based system with Enhanced Care, a no-fault insurance model. This was the most significant change to BC auto insurance in decades.
Before Enhanced Care: Injured BC drivers had the right to sue at-fault drivers for pain and suffering damages. Legal battles were lengthy, expensive, and often produced inconsistent outcomes. ICBC's costs were among the highest per claim in North America.
Under Enhanced Care: The right to sue for pain and suffering from vehicle accidents is eliminated for most accidents. Instead, ICBC provides significantly enhanced no-fault care and recovery benefits regardless of who caused the accident.
Enhanced Care provides substantially increased benefits compared to the previous system:
ICBC's Enhanced Care eliminates most legal disputes and redirects money from legal costs to actual care. Average premiums reduced for many BC drivers following the transition, as legal and administrative costs dropped significantly.
Basic Autoplan is mandatory for all BC drivers and includes:
While basic Autoplan provides $200,000 in third-party liability, this is inadequate for serious accidents. ICBC offers optional extensions to $1 million, $2 million, $3 million, or $5 million. The premium difference between $200,000 and $2 million is typically only $50–$100/year — strongly recommended for all BC drivers.
Pays for damage to your vehicle when you collide with another vehicle or object, regardless of fault. Deductible options range from $300 to $2,500. Your Declared Value (the value you set for your vehicle) determines the maximum payout.
Covers non-collision damage to your vehicle: theft, vandalism, fire, hail, falling objects, hitting an animal. Vehicle theft is a significant issue in Metro Vancouver — comprehensive coverage is highly recommended in the Lower Mainland.
A limited version of comprehensive that covers only specific listed perils. Less common than comprehensive.
ICBC's Road Star program provides discounts of up to 43% for drivers who maintain an accident-free record over multiple years. Road Star replaces the old Driver Certificate Discount program and bases discounts on a combination of claims history and driving experience.
ICBC's rate structure is heavily based on your claims history. The Driver Discount (formerly Claim-Free Discount) rewards safe driving:
| Years Claim-Free | Discount Level | Approximate Discount |
|---|---|---|
| New driver (0 years) | 0 | 0% |
| 1–2 years claim-free | +1 to +2 | ~5–10% |
| 3–5 years claim-free | +3 to +5 | ~15–25% |
| 6–9 years claim-free | +6 to +9 | ~25–38% |
| 10+ years claim-free | +10 | Up to 43% |
An at-fault claim drops your driving record level, increasing your basic premium. Significant claims can drop you multiple levels and cost significantly more in premium increases than the claim payout itself — for low-value repairs, it often makes sense to pay out of pocket to protect your discount.
For optional coverages (collision, comprehensive, extended liability), BC drivers can shop between ICBC and approved private insurers. Private insurers sometimes offer more competitive rates on optional coverage, particularly for:
Always compare ICBC optional rates against private insurer quotes. The difference can be $200–$600/year for the same coverage.
Insurance, rent, groceries — living in BC is expensive. KOHO's no-fee account with up to 5% cash back helps BC residents get more from every dollar they spend. Join over 1 million Canadians already saving with KOHO.
Get KOHO Free — Code 45ET55JSYAUnder ICBC's Enhanced Care model, you generally cannot sue for pain and suffering from accidents occurring in BC after May 1, 2021. However, tort rights may still exist for accidents with commercial trucks, out-of-province drivers, or involving criminal acts. Accidents occurring before May 1, 2021 follow the old rules. Consult a lawyer for complex situations.
Basic Autoplan does not cover rental vehicles you are driving. You can add rental vehicle coverage through ICBC's optional coverage options, or purchase coverage from the rental agency. Many credit cards also include rental vehicle coverage — check your card benefits before purchasing rental insurance.
Under Enhanced Care, your injury benefits are paid regardless of fault. However, an at-fault accident affects your driving discount level, potentially increasing your future premiums significantly. You may also face premium surcharges for multiple at-fault accidents.
Maintain a claims-free record to accumulate Road Star discounts. Consider higher deductibles on optional coverage. Compare private insurers for optional coverages. Use ICBC's annual review process to ensure your vehicle's declared value and usage accurately reflect reality. Reducing annual kilometers driven (if you work from home or use transit) can reduce premiums.