Auto Insurance​

Yes. Auto insurance is mandatory according to law everywhere in Canada.

For the protection of drivers, passengers, and anyone involved in a car accident, owners of vehicles must purchase auto insurance to cover any damages from unexpected and unavoidable events. While some provinces require more insurance coverage than others, a minimum amount of insurance coverage is mandated by every jurisdiction in Canada. Car insurance protects you from having to pay to repair your vehicle if it’s damaged in an accident and protects you from liability claims if you’re held responsible for causing damage to another person’s vehicle or injuring another party.

In addition to collision and comprehensive coverage, auto insurance covers policyholders’ third-party liability, specified perils, and all perils:

• Third-party liability coverage – offers protection for drivers if they’re found at fault for damaging property or injuring or killing another party. While coverage amount is mandated at the provincial level, at the minimum, your policy should cover medical expenses for people injured in the accident. This coverage type is mandatory in Canada.
• Specified perils coverage – offers protection for drivers against specific incidents that may result in the destruction of their vehicle. All perils coverage protects you against all risk, except risks that are specifically excluded from the policy. With a specified perils policy, you pay only for the coverage you need; for example:
  
  
  • Fire
  • Theft
  • Hail
  • Lightning
  • Explosion etc.
    
    
• All perils coverage – protects you from all risks except those excluded from your policy.

An insurance deductible is the amount of money you agree to pay out of your own pocket before the insurance company will pay the remaining balance of a claim. For example, if a car accident causes $2,500 in damage to your vehicle and your policy requires a $500 deductible, you’ll be required to pay the $500 up front to the body shop before the insurance company will pay the remaining $2,000.

You should calculate short and long-term expenses your dependents will be faced with in your absence and identify a suitable amount of coverage that will take care of their needs. Contact one of our life insurance experts to discuss the right amount of coverage for you and your family – we’re happy to walk you through the entire process.

Under new ICBC rules, if you live in the same household as an individual, the person needs to be a registered driver of the car to be covered by your insurance. If you do not live in the same household, you may lend your car up to 12 times per year and this person will be covered by your insurance policy.

There are several ways to reduce the cost of purchasing auto insurance:

• Build and maintain a clean driving record;
• Choose a higher deductible amount if you’re able to afford paying more up front when involved in a car accident;
• If you drive less than 5,000 kms a year, you can save 10% on your insurance premium the following year; and,
• Find additional ways to save by contacting one of our auto insurance experts.

Ride-hailing companies are responsible for ensuring their drivers and driver vehicles meet Passenger Transportation Board (PTB) requirements; these regulations include:

• A Class 1, Class 2, or Class 4 commercial driver’s license issues in B.C.;
• A police record check;
• A vehicle that meets all requirements and has passed a vehicle inspection; and,
• A commercial driving record, commonly known as an (N) print or National Safety Code abstract, which you can request from ICBC online or by phone at 1-800-663-3051 or 604-661-2800.

ICBC issues blanket insurance to ride-hailing companies, but not individual drivers, which provides the insurance required during ride-hailing usage. This blanket coverage is compulsory for ride-hailing companies and provides coverage for accident benefits and up to $1,000,000 third party liability. Therefore, drivers and their passengers are covered by the ride-hailing company’s insurance policy when:

• You accept a trip via the mobile app;
• When you’re on the way to pick up a passenger(s); or,
• When you’re transporting passenger(s).

To learn more, visit ICBC’s website here or contact AP Insurance and we’ll provide custom advice based on your personal circumstances.