What You Need to Know About Distance Based Auto Insurance in BC?
Do you drive less than 10,000 kilometers per year? You may be eligible for a new distance-based discount on select ICBC Optional insurance. At your next two annual insurance renewals with your auto insurance broker in Surrey, bring in a photo of your odometer reading to find out if you are eligible.
Save with ICBCs Distance-Based Discounts
Drivers can save on premium costs of auto insurance with ICBCs new distance-based discount. Starting in 2023, ICBC will be offering a new discount on optional insurance plans that can help eligible drivers save between 5 and 15 percent on certain coverages. This distance-based discount is available for customers who have driven less than 10,000 kilometers in the previous annual policy year and who fall into an eligible rate class. The less they drive, the more they will save!
Who qualifies for the distance-based discount?
It is estimated that approximately 40 percent of ICBC customers in the eligible rate class will qualify for this new distance-based discount.
To be eligible, drivers must:
- Drive less than 10,000 kilometers per annual year
- Submit photos of two odometer readings from one year apart as proof of distance travelled
- Have an existing 12-month ICBC Autoplan policy with optional coverage
- Have a vehicle with an eligible rate class (excluded vehicles include motorcycles, RVs, and collector vehicles)
The qualifying period starts when eligible drivers submit their first odometer reading, either at their annual renewal or when they purchase a new policy. Once an annual year has passed, drivers will submit a second photo of their odometer reading to prove they drove less than 10,000 kilometers in the past year.
If eligible, customers can receive a 5 to 15 percent discount on their ICBC Optional coverages plan at their time of renewal. Drivers whose vehicles acquired more than 10,000 kilometers in the given year will not be eligible for the distance-based discount; however, they will not be charged more either as there is no penalty for surpassing the 10,000 kilometer range.
How do I submit my odometer reading?
You can submit your odometer reading online or through your Goldleaf broker. Not sure if you will qualify? Even if you think you will accumulate more than 10,000 kilometers in the given year, it is still worthwhile submitting your odometer reading. Should you be eligible, you will already have your proof on file for when the discount comes into effect in the spring of 2023. Plus, with no penalty for driving over the 10,000-kilometer limit, there really is no downside to submitting your odometer reading.
You can submit your odometer reading when:
- You purchase a new policy
- You renew your current policy online or when you contact your Goldleaf broker
If you did not submit an odometer reading when you renewed or purchased a new policy, don’t worry. You can submit it at any time during your policy term. However, the photo of your odometer reading must be dated within seven days before or after your policy purchase or renewal date. So, while you can submit the photo at any point in your policy term, the proof of odometer reading must be obtained no earlier than seven days before the date you renewed or purchased your current policy and no later than seven days after that same date. To ensure a seamless submission, reach out to your Goldleaf broker directly.
How is this different from the low-kilometer discount?
ICBC has a similar low-kilometer discount that was introduced in 2019; however, this new incentive will not replace but can actually be used in tandem with the existing usage-based incentive. So, what’s the difference between the two? This new distance-based discount applies to select ICBC Optional coverages only, whereas the existing low-kilometer discount is applicable to ICBC Basic insurance, Extension Third-Party Liability and Collision coverages. Additionally, this new distance-based discount is available for drivers who travelled less than 10,000 kilometers in the previous annual year compared to the low-kilometer incentive which is 5,000 kilometers or less.
For customers who are eligible for both the low-kilometer and the distance-based discounts, it is possible to receive both. For example, say a driver is receiving a 10 percent discount on their Basic insurance with the low-kilometer incentive. They can continue to benefit from this plan and also receive 5 to 15 percent savings on select ICBC Optional coverages.
Take advantage of ICBCs expanding usage-based insurance plans
Why pay for what you don’t use? With usage-based insurance, you can buy insurance that is priced based on your specific driving behaviours. While the newest distance-based discount tracks kilometers travelled, there are other usage-based insurance plans that use devices or smartphone apps to track driving speed, braking habits, etc. This customized approach to insurance not only saves you money but also gives you more control over your premium costs.
As these types of incentives have been implemented throughout Canada and across the world, ICBC is working hard to bring these usage-based plans to British Columbia. While our team at Goldleaf is excited for the new launch of this distance-based discount, we are expecting to see more incentives introduced over the next few years.
In addition to ICBCs usage-based plans, speak to your Goldleaf broker to see if you are eligible for discounts such as:
- AEB System Discount
- Fleet Discount
- Tax savings if you are planning on buying a used vehicle
To stay in the know and ensure you receiving the best and most affordable coverage based on your driving habits, our brokers are here to advise.
Ready to save?
Starting in the Spring of 2023, you may be eligible for a 5 to 15 percent discount on your ICBC Optional insurance if you drive less than 10,000 kilometers in a given year. To get a jumpstart on these potential savings, verify your driving distance by submitting two odometer readings spaced one year apart. For your peace of mind, submit these photos at your annual insurance renewals with Goldleaf Insurance.