Province Plans To Drop ICBC Cancellation Fees During COVID-19 Crisis


The B.C. government plans to waive cancellation fees at the ICBC as drivers question whether to get rid of auto insurance during the COVID-19 pandemic.

Currently, canceling an ICBC policy costs $ 30, plus $ 18 for new license plates and an additional $ 15 if you pay monthly.

“A number of people – due to job loss – may need to suspend their insurance or cancel their insurance, where deferrals are not enough, and we don’t want them to pay premiums. additional costs, “said Attorney General David Eby. .

“For people who plan to cancel their insurance and restart it, I would suggest, as much as possible, to wait for the cancellation to give us the chance to have a system in place allowing them to do so at no cost . “

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But even with the cancellation fees, drivers could save a ton if they had to cancel their policies now.

If the pandemic were to last until the end of June, British Columbia drivers would save almost three months of premiums.

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For example, a driver who drives more than 10 kilometers per day with 20,000 kilometers per year and a faulty accident pays an average of $ 2,654 per year in insurance premiums to travel from Abbotsford to Vancouver.

If the driver canceled his policy now and parked his vehicle, he would save $ 547 after the cancellation fee and obtain a new license plate and policy in early July.

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The province itself is also seeing savings from ICBC in the pandemic, but it is unclear how much at this point.

“The risk is lower. There are fewer collisions because there are simply fewer cars on the road, “said Eby.

“I don’t think anyone has imagined anything like this. We are still early enough in the pandemic to understand what the financial impacts are, but I have asked the ICBC to report to me on how it affects the finances of the ICBC. “

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A new law introduced by the government will ensure that savings made on the system during the pandemic are ultimately passed on to drivers, added Eby.

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Two insurance companies operating in the United States, Allstate and American Family Insurance, announced on Monday that they would return approximately $ 800 million to their auto insurance customers because people drive far less during the epidemic.

Allstate will reimburse approximately 15% of the premiums paid in April and May, for a total of approximately $ 600 million. This includes Canadian customers with personal auto insurance.

The BC Liberals are asking the Horgan government to do something similar.

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“This is the time when ICBC and the government should offer discounts or at least clawbacks on the rates we currently pay,” said ICBC British Columbia Liberal spokesperson Jas Johal.

The province says one of the factors considered before considering a haircut is the insurer’s investments. Like so many others, the company was hit hard financially by the significant downturn in the stock markets.

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Canadian Taxpayers Federation B.C. Director Kris Sims said the government should allow drivers to stay at home and switch to cheaper recreational insurance without any penalties.

“We don’t drive to and from work every day of the week, which means they should be allowed to switch leisure insurance,” said Sims.

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