Effective May 1, 2021, new Basic Vehicle Damage Coverage (BVDC) will apply and will automatically be included in the basic insurance that all vehicle owners purchase from ICBC.

BVDC changes the way vehicle repair and replacement costs are paid when customers are in crashes involving more than one vehicle. Under BVDC:

• If you are not responsible for a crash, your premiums will not be affected and your BVDC pays for the repairs.
• If you are responsible for a crash, your premiums could be affected. Your optional collision coverage will cover costs related to your damaged vehicle; if you don’t have this coverage, you will be responsible for the repair costs.
• If you are partially responsible, your premiums could be affected. Your optional collision coverage pays for the percentage of repair costs that you’re responsible for, and BVDC pays the rest.

Under the current system, the insurance policy of the driver responsible for a crash pays for the repairs to the other driver’s damaged vehicle. If the responsible driver has inadequate third-party liability coverage, the other driver would need to pursue remedy through the courts. Paying for the claim out of your own policy (first-party coverage) will ensure that all policyholders receive a consistent level of vehicle damage protection when they are not responsible for a crash, and they won’t need to rely on the at-fault driver’s third-party liability coverage.

BVDC will include a maximum coverage limit of $200,000 for vehicle-related damages, enough coverage to repair or replace 99% of vehicles in B.C. Drivers who have bought ICBC’s optional collision coverage will be covered for any vehicle repairs above the $200,000 limit. Collision coverage also ensures that repairs to an owner’s vehicle are covered if they are responsible for a crash.

While BVDC covers you even if the other vehicle in the crash is uninsured, it doesn’t cover vehicle damage from a hit-and-run (i.e., when an unidentified driver damages your vehicle and leaves the scene). Starting May 1, protection from hit-and-run vehicle damage will be covered by an optional insurance product. If you buy ICBC’s collision coverage, as about 80% of ICBC’s personal insurance customers do, you will still be protected from hit-and-runs. Customers can discuss coverage options with their Autoplan broker.

ICBC’s shift to Enhanced Care coverage on May 1 will save drivers an average of 20% a year on their full ICBC basic and optional auto insurance while ensuring access to better care and recovery benefits for people injured in crashes, regardless of fault.

To learn more, visit: icbc.com/2021