ICBC expands its usage-based insurance offering with new discount

ICBC expands its usage-based insurance offering with new discount | Insurance Business Canada

Motor & Fleet

Drivers who travel less than 10,000 km annually may avail of deal

Motor & Fleet

By
Mika Pangilinan

In a bid to offer more cost-saving options, the Insurance Corporation of British Columbia (ICBC) has introduced a new distance-based discount for drivers in the province who travel less than 10,000 kilometres per year.

According to a press release, BC drivers with policies effective June 1 or later may be able to save between 10 to 15% on their ICBC optional coverage when renewing this year. The amount will vary based on the distance driven, with greater savings for those who drive fewer kilometres.

To qualify, drivers must meet provide two odometer readings taken one year apart as proof of their driving distance. They must also have a 12-month Autoplan policy that includes ICBC optional coverage.

Additionally, not all vehicle types are eligible for the discount, with motorcycles, RVs, collector vehicles, and certain other vehicles excluded from the program.

In a recent survey commissioned by ICBC, over half of British Columbians (56%) expressed interest in usage-based insurance, with cost savings being the primary motivator.

ICBC said its new distance-based discount is a response to this demand, expanding on an existing low-kilometre discount that was implemented in 2019 for vehicles driven less than 5,000 kilometres annually.

Drivers currently eligible for the low-kilometre discount already enjoy a 10% reduction on their basic insurance, according to ICBC, and may now also qualify for the new distance-based discount on select optional coverages.

More than 50% of eligible ICBC policyholders already provide their odometer readings online or through their insurance broker, the Crown-owned insurer stated further.

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