Buying a Car in BC: Insurance From the Dealer or Your Own Broker
If you are purchasing a new vehicle from a dealership in BC, it's not mandatory to buy insurance from the on-site Autoplan broker. You have the choice to compare your new car insurance from dealer or outside broker options in BC.
You can, for example, choose to go with a different Autoplan broker whom you already know and trust. What is most important is getting everything completed before you drive your new or used car away.
Goldleaf Insurance Brokers | Life, Auto & Commercial Insurance
Phone: (604) 591-6200
Email: info@goldleafinsurance.ca
Address: 13049 76 Avenue #102,Surrey, BC, V3W 2V7
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New Car Insurance From Dealer or Outside Broker
Many new and used vehicle dealerships in British Columbia have an Autoplan broker working on site. One reason for this is that it provides convenience to customers, so they can complete the purchase, registration, and licensing in one location. However, customers still have the option to choose which Autoplan broker to work with.
In fact, ICBC states that customers can contact any Autoplan broker when buying a new vehicle. Further, ICBC has also instructed dealerships to inform their customers that they must not imply that customers are required to use the broker located at the store.
If you prefer your own broker, contact them before delivery. Your broker and the car dealership will need the right purchase information and documents to complete the transaction. Your vehicle must be properly registered, licensed, and insured before you take it onto the road.
For help in this process, contact the brokers at Goldleaf Insurance Brokers
Dealership Insurance vs. Your Own Autoplan Broker
Both options can complete an ICBC Autoplan transaction. The main difference is who you work with and when you arrange the insurance.
|
Factor |
Dealership Autoplan Broker |
Your Own Autoplan Broker |
|---|---|---|
|
Convenience |
Often available at the dealership when you pick up the vehicle |
Requires planning before pickup |
|
Choice |
You work with the broker located at or recommended by the dealer |
You choose the Autoplan broker you prefer |
|
Familiarity |
The broker can be new to you |
You can work with a broker who already knows your insurance history |
|
Documents |
Dealership staff can provide purchase details directly |
Purchase documents need to be sent to your chosen broker |
|
Coverage review |
Coverage can be reviewed during the dealership transaction |
You need to discuss coverage before arriving to pick up the car |
|
Optional insurance |
Options depend on the products available through the broker |
Your broker can explain the ICBC and eligible private options they offer |
ICBC specifically allows buyers to use any Autoplan broker. A dealership can recommend its on-site broker, but it can't require you to use that broker. When comparing options, make sure you are looking at the same coverage, limits, and deductibles rather than comparing price alone.
How to Insure a New Vehicle From a Dealership
1. Choose Your Vehicle
After knowing the car you are purchasing, gather all the relevant vehicle details. Although the type of vehicle affects your premium costs, it's wise to speak with a broker before finalizing the sale, as their input may assist in reducing premium costs.
2. Choose Your Autoplan Broker
Choose whether you would like to use the broker provided by the dealer or your preferred Autoplan broker. Remember that there is no obligation on your part to use the broker indicated by the dealer.
3. Send the Purchase Documents
If you are using an outside broker, ask what documents they need from the dealership. Typically, this includes information that identifies the vehicle and confirms the purchase. Obtain such documentation before your delivery date to prevent delays in receiving your vehicle due to incomplete paperwork.
4. Review Your Coverage
Review both your Basic Autoplan policy (including mandatory Enhanced Care injury coverage) and additional optional protection before completing the sale process. Pay attention to deductible amounts, the intended usage of your vehicle, listed drivers, and whether you need extra coverage for damage protection.
5. Complete Registration and Insurance
At the time you receive your new vehicle from the dealership, it must first be registered, inspected (if applicable), licensed, and insured. After completion of these steps, you can legally take the vehicle onto the road.
Information Needed to Insure Your New Car
Get all your documents in order before moving forward with the insurance transaction. The paperwork required by your broker will depend on what you're purchasing and what your existing insurance is.
Your broker may request:
- Your BC driver's licence and customer information
- The vehicle identification number (VIN)
- Year, make, model, and vehicle details
- Purchase or lease information (Bill of Sale or Lease Agreement) from the dealership
- The names and licence details of unlisted drivers who will use the vehicle
- How the vehicle will be used, such as commuting, pleasure, or business use
- Details about your existing policy if you are replacing another vehicle
- Information about your current licence plates when a transfer applies
If you are transferring an existing insurance policy, ICBC requires additional transfer documentation, including the APV9T Transfer/Tax form. Previous odometer information can also be needed when determining eligibility for a distance-based discount.
Once the transaction is complete, you will have the required proof of insurance for your vehicle before you take it onto the road.
Buying a Used Car From a Dealership
If you purchase a used vehicle through a licensed BC dealership, the registration, licensing, and insurance process is similar and still needs to be completed.
Dealers can assist customers in completing these steps and may have an insurance broker present at their location or provide customers with contact information when they choose to work with an Autoplan broker of their choice.
Insurance costs can vary greatly for a used vehicle based on factors including its market value, repair cost, age, and usage. It's recommended that you take some time to discuss your insurance options and determine the type of coverage that will meet your goals before you sign the final paperwork.
Contact us at Goldleaf Insurance Brokers before purchasing a used vehicle so we can assist in determining what insurance options would be best suited for your situation.
Buying a Car From a Private Seller
A private vehicle purchase requires more involvement from both the buyer and seller. In a standard BC private sale, the buyer and seller complete and sign the APV9T Transfer/Tax Form. You also need the seller’s signed vehicle registration (APV250). These documents are then taken to an Autoplan broker to transfer the vehicle into the buyer’s name. Once the vehicle is registered, it can be licensed and insured.
BC law gives the buyer 10 days to register a newly purchased vehicle, but that doesn't mean you automatically have 10 days of insurance. A separate 10-day rule allows certain buyers to temporarily use plates from a previous vehicle, but strict conditions apply. For example, the old vehicle must have been disposed of, both vehicles must be the same type, and neither vehicle can be leased.
If you don't meet every requirement, arrange proper insurance and licensing before driving the car with the help of licensed brokers at Goldleaf Insurance Brokers
New, Financed and Leased Vehicle Insurance
A financed or leased vehicle adds another party to the insurance decision. Your leasing or financing company has a financial interest in the car, so your loan or lease contract can require additional protection.
Collision and Comprehensive coverage are commonly required on financed and leased vehicles, even though these coverages are optional under provincial insurance rules. The exact coverage and deductible requirements depend on your contract.
Read the financing or leasing terms before choosing your car insurance policy. New vehicles also lose value over time, which makes replacement protection worth reviewing when you make a large purchase.
Talk to Goldleaf Insurance Brokers about car insurance quotes and the insurance requirements for your financed or leased vehicle before your delivery date, so you can make an informed decision.
Auto Insurance Coverage to Consider
Discounts vary between private insurance companies. Some offer multi-policy savings when you insure both your home and vehicle with them, while others offer discounts when a household has more than one eligible auto policy with the same insurer. Your driving record also matters when insurers calculate risk.
Comparing quotes lets you see the actual premium rather than guessing which provider has lower rates. To ensure you get the best quotes, contact us.
Basic Autoplan
Basic Autoplan is the core insurance required by law, and it's mandatory for vehicles operated in British Columbia. It includes Enhanced Care medical/rehabilitation protection and $200,000 Third-Party Liability. You purchase your Basic Autoplan through an authorized Autoplan broker before driving the vehicle.
Collision Coverage
Collision coverage protects your own vehicle when it is damaged in a crash covered by the policy, and it's especially important when repairing or replacing the car would create a major financial burden. A deductible applies to eligible claims.
Comprehensive Coverage
Comprehensive coverage protects your vehicle against covered losses not related to a collision. This can include theft, vandalism, fire, weather damage, falling objects, and similar events, depending on your coverage.
Extended Third-Party Liability
Basic insurance includes Third-Party Liability protection up to $200,000. Extended Third-Party Liability increases that limit (typically up to $2,000,000 or $5,000,000). Your broker can explain the available limits and help you decide how much protection fits your situation.
Loss of Use
If an insured claim leaves your car at a repair facility, Loss of Use coverage helps with eligible transportation expenses while you wait. Depending on the insurance policy, this can include a rental car or other approved transportation costs.
Vehicle Replacement Insurance
Replacement protection is designed to reduce the effect of depreciation after an eligible major loss, since new vehicles can lose value quickly. Eligibility depends on factors such as vehicle age and the other optional coverage carried on the vehicle.
Can You Get an Insurance Estimate Before Buying
Yes. In fact, insurance cost is worth checking while you compare vehicles. The purchase price is only one part of what the car will cost you, and an early insurance estimate gives you a clearer picture of the total cost of ownership. It also gives you time to compare deductibles and optional coverage without making a rushed decision on delivery day.
Give your broker as much information as possible about the car, including the year, make, model, intended use, listed drivers, and purchase details. A vehicle identification number (VIN) helps identify the exact vehicle once you have it.
How Goldleaf Helps When You Buy a Car
Buying the car is your decision, but we can make the insurance side easier to understand and complete.
1. Review the Purchase
Tell us whether you are buying new or used, purchasing from a dealership or private seller, and whether the vehicle is owned, financed, or leased.
2. Gather the Documents
We explain which vehicle and purchase documents are needed for your Autoplan transaction so you can get them ready before pickup.
3. Review the Insurance
We explain the Basic Autoplan and available optional coverage, both through ICBC and eligible private insurance providers. You can review deductibles, vehicle protection, liability limits, and other insurance needs before making your decision.
4. Complete the Transaction
Once the required information is available, we help you complete the applicable registration and insurance transaction so your vehicle is properly insured before you drive it.
Contact Goldleaf Insurance Brokers before your vehicle pickup and let us help you determine the best coverage and prepare your car insurance in advance.