If you’re one of many drivers in British Columbia who uses their vehicle less often, ICBC has some good news for you. Starting June 1, 2025, ICBC is rolling out an expanded Distance-Based Discount that rewards low-mileage drivers with real savings on their auto insurance.
Whether you mainly drive around your neighborhood or only use your car for occasional trips, you could be eligible for discounts that make a real difference. Here’s everything you need to know about the new ICBC distance-based savings program.
What is ICBC’s Distance-Based Discount?
The Distance-Based Discount is designed for drivers who don’t rack up a lot of kilometers each year. If you drive less than 15,000 kilometers annually, you could receive a 10–15% discount on select Optional coverages like Collision, Comprehensive, and Extended Third Party Liability.
But it gets even better. If you drive under 5,000 kilometers per year, you’re eligible for an additional 10% discount on your Basic insurance coverage.
That means smaller insurance bills just for putting fewer kilometers on your odometer.
How Does It Work?
Getting the discount is simple:
- At the start of your insurance policy, you submit your odometer reading.
- At renewal time, you provide another odometer reading to confirm how many kilometers you’ve driven.
If your mileage stays within the program limits, you’ll see the savings on your next policy term.
You can submit your readings online through ICBC or with the help of your local Autoplan broker.
Why is ICBC Offering a Distance-Based Discount?
This program isn’t just about saving money. It’s part of ICBC’s larger efforts to make insurance fairer and more flexible. If you’re not using your vehicle as much, you shouldn’t be paying the same rates as someone who’s on the road every day.
Plus, driving less often means fewer risks on the road, which benefits everyone. ICBC’s new discount helps recognize and reward safer, lower mileage driving habits.
Is the Distance-Based Discount Still Available in 2026?
The short answer is: Yes. Drivers renewing their insurance in 2026 can still get the discount if they meet the criteria of driving less than 15,000 kilometers per year (discount applied on optional coverages), or less than 5,000 kilometers per year (discount applied on basic coverage).
Who Should Apply?
You might qualify for ICBC’s Distance-Based Discount if:
- You work from home and don’t commute daily.
- You own a secondary vehicle that’s rarely used.
- You only drive short distances around your city or town.
- You’re a retiree or student with limited travel needs.
Even occasional drivers can unlock meaningful savings — it’s worth checking your annual mileage to see if you’re eligible.
How Much Can You Save?
Here’s a quick breakdown:
- Under 15,000 km/year: Save 10–15% on Optional insurance coverages.
- Under 5,000 km/year: Get an additional 10% off Basic insurance coverage.
Over time, these savings can add up, especially for households with multiple low-mileage vehicles.
How to Get Started
If you think you might qualify, the first step is easy: check your current odometer reading and keep track of your mileage. When it’s time to renew your auto insurance, submit your readings either through your Autoplan broker or online with ICBC.
You can learn more details and see the full program information on ICBC’s official Distance-Based Discount page.
Final Thoughts
If you drive less, you deserve to pay less — and ICBC’s Distance-Based Discount makes that possible. Whether you’re adjusting to a new hybrid work schedule, living a more local lifestyle, or simply using your car less, this new program is a smart way to save.
Stay safe, drive smart, and enjoy the savings.