British Columbia drivers now have a new way to potentially lower their car insurance costs. ICBC has rolled out a new usage-based discount program, rewarding those who drive less. Eligible drivers could see savings of 10% to 15% on certain optional coverages, making car insurance more affordable for lower-mileage vehicles.
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The core idea is simple: if you drive less, you might be eligible for a discount on your insurance premium. This reflects a lower risk profile and aligns with the increasing interest among drivers for insurance plans tied to actual vehicle usage.
Who is Eligible for the ICBC Discount?
Starting June 1, 2025, drivers renewing their optional ICBC coverage may qualify for this distance-based discount if they drove less than 15,000 kilometers in the previous year. This threshold is designed to benefit individuals who don’t use their vehicle for daily long commutes or extensive travel. Examples include drivers who rely on public transit for work, use a vehicle primarily on weekends, or have a second vehicle that isn’t driven frequently.
How Much Can You Save?
The potential savings range from 10% to 15% on specific optional coverages. The exact discount amount will depend on the total distance driven during the one-year policy term leading up to your renewal. This means the less you drive under the 15,000 km limit, the greater your percentage discount could be within that range.
Which Coverages Apply?
This distance-based discount applies to premiums for the following ICBC optional coverages:
- Extension Third Party Liability
- Collision
- Comprehensive
- Specified Perils
Reviewing your current policy to see if you hold these coverages is the first step to understanding your potential savings.
How to Qualify and Apply
To prove eligibility, drivers must provide two photos of their vehicle’s odometer taken approximately one year apart. These photos will verify the distance driven during the preceding 12-month period.
The discount becomes available for policies renewing on or after June 1, 2025. Drivers should plan to take their first odometer photo about a year before their renewal date if they believe they qualify based on their driving habits.
ICBC’s President and CEO, David Wong, emphasized the corporation’s focus on affordability. “We know many of our customers are interested in usage-based insurance with cost savings being the top motivating factor, and it’s our goal to provide affordable auto insurance to the people living in B.C.,” Wong stated. He also noted that driving less reduces accident risk and is better for the environment.
ICBC logo on a blue background
For full details on submitting your odometer reading and verifying eligibility, check the official ICBC website. The site provides a step-by-step guide on the process.
Who Isn’t Included?
It’s important to note that not all vehicles are eligible for this discount. Motorcycles, RVs, collector vehicles, and certain other vehicle types are currently excluded from this offer. Drivers of these vehicle types will not be able to take advantage of the distance-based savings.
What’s Next for BC Drivers
ICBC’s new distance-based discount offers a tangible way for lower-mileage drivers in British Columbia to reduce their optional insurance premiums. If you drive less than 15,000 km annually, this could mean real savings come renewal time in 2025.
Review your driving habits and vehicle type, then visit the ICBC website or speak with your broker to see if you qualify for this new discount or explore other potential savings.
