Most individuals rarely consider or discuss insurance unless they are paying for it or making a claim. As a result, many customers seem to continue to believe several insurance misconceptions regarding vehicle insurance policies.
If you own a vehicle in British Columbia, you are required to get and maintain ICBC Autoplan basic insurance through ICBC Insurance agents.
The Insurance Corporation of British Columbia covers all-risk vehicle insurance for drivers in the province. Also, they are in charge of licenses and registration for vehicles and drivers.
ICBC, a provincial crown company established in 1973 to sell insurance policies through its network of brokers, is in charge of overseeing the province’s autoplan insurance program. In British Columbia, every driver is required to buy a basic insurance package from ICBC, which covers third-party liability, accident benefits, vehicle damage, underinsured motorist protection, and inverse liability coverage.
Reality: Your auto insurance rates do not increase. But if you accrue 4 or more driver penalty points throughout a year's assessment, ICBC will send you a Driver Penalty Point (DPP) bill. If you do not pay this bill, ICBC may refuse to renew your auto insurance, and you will not be able to renew your driver’s license.
Nonetheless, the majority of speeding tickets cost you 2 to 3 points, so you won't pay a higher premium if you just get them occasionally.
Reality: Most people have the misconception that ICBC Autoplan insurance costs increase if you own a red car.
However, While ICBC Autoplan considered a variety of factors to determine insurance premiums, such as model, driving history, where you live, use of the vehicle, and the coverage and deductible you selected, the vehicle color was not one of them.
Reality: Your age, driving history, and the kind of car you drive are just a few of the variables that may impact the cost of your auto insurance. Your line of work is not one of these criteria, though.
No matter which branch of the military or position you are in, you do not have to pay more than ordinary civilians.
Reality: The idea that a young driver did not receive a discount is untrue. Drivers who enroll in defensive driving courses can receive a discount from ICBC Autoplan, with a maximum reduction of 5%. However, a license should be acknowledged by the ICBC.
Reality: This is also one of the misconceptions regarding the ICBC Autoplan. If anyone decides to discontinue their insurance, they will get a refund for any unused premium. However, there can be a cancellation fee.
Reality: If you are involved in an accident in British Columbia, you are legally obligated to report it to ICBC, regardless of who is to blame. This is necessary for ICBC in order to determine the risk of drivers and calculate rates correctly. If you choose not to make a claim to ICBC in the event that you weren't at fault for a crash, your insurance rates will not go up. This is so that all drivers are covered by ICBC's Enhanced Care insurance coverage for medical costs and lost wages, regardless of guilt.
Reality: British Columbia's ICBC insurance does not base your insurance cost on credit ratings.
ICBC refrains from using credit ratings for a number of reasons. Because there is no proof that a person's credit score can accurately forecast their risk of driving. Those with poor credit scores, who could be more likely to reside in small regions and have less access to inexpensive insurance, may also be subject to discrimination if credit scores are used.
Instead, they base charges on elements like location, car type, or driving record. ICBC does not intend to utilize credit scores going forward.
Reality: You should update your insurance to make sure you are protected in case of an accident or other occurrence before the expiration date.
In British Columbia, you have up to 55 days before the end of your existing policy to renew your ICBC vehicle insurance.
Early renewal of your ICBC insurance can have several advantages, including preventing coverage gaps, giving you time to make any necessary revisions to your policy and locking in a lower cost if rate rises are imminent.
Reality: The most widespread misconceptions regarding automobile insurance are, "My insurance won't be affected if my acquaintance uses my car and gets into an accident”. But, this is untrue. At-fault collisions will reflect on the driving record of the driver who caused the collision, not the owner of the car, under the driver-based insurance model adopted by British Columbia in 2019. However, the owner of the vehicle will be required to pay a one-time higher premium if the driver who caused the collision isn't listed as an additional driver on the insurance policy.
Reality: Also, this isn't true. because ICBC will still offer auto insurance to drivers with poor driving records, but they will probably pay higher prices because insurance costs are greater. Drivers with several DUI convictions or license suspensions may not be eligible, since the conditions change depending on how serious the driver's record is. Minor traffic offenses may still be eligible, but there is a greater cost.
Reality: The myth that hybrid and electric cars with ICBC have higher premiums is not entirely true. Hybrid and electric cars are generally less likely to be involved in accidents due to their fuel efficiency and safety features.
However, factors like expensive battery replacements and harsh winters may increase the premium. Overall, the cost of insuring a hybrid or electric car with ICBC varies depending on factors, but it is not necessarily true that you will have to pay a higher premium for these types of cars.
Reality: ICBC Autoplan does not always cover car damage or theft. It depends on the kind of policy you have. Only property damage is covered by standard liability insurance when an accident occurs. Repairs for damaged or stolen vehicles are covered under comprehensive and collision insurance. There are, however, some exceptions, such as losses caused by carelessness.
A British Columbia Crown corporation, ICBC Autoplan Insurance, oversees the state's auto insurance policy, which provides third-party liability, accident benefits, vehicle damage, underinsured motorist protection, and inverse liability coverage. There are several misconceptions about how large a firm is, such as the following: there are no advantages to renewing before renewal; speeding fines; car color; army fees; discounts on young drivers; and unused premiums. These are not entirely accurate and true, though.
Like ICBC, Autoplan focuses insurance premiums on criteria such as province, car model, and driving history rather than credit scores. Due to their fuel efficiency and safety measures, hybrid and electric vehicles are often less likely to be involved in collisions. Nevertheless, elements like high battery repair costs and severe winters might raise the price. Also, ICBC always covers the cost of the car's damage, and crashes that were the other driver's fault, not the owner's, will appear on that person's driving record.