How are premiums set?

The Autoplan premium is what you pay for your insurance coverage. Premiums vary depending on a number of factors. These may include: your claims history and what type of insurance you have; what your vehicle is used for; where it is located when it is not being driven (the garaging address), or, in the case of most commercial vehicles, where it is driven.

Premiums may change for a number of reasons, including:

• Where you live — If you live in a large city, you will experience different driving conditions than someone who lives in a small town; your insurance takes this into account. If you drive where there is heavy traffic, you have a higher chance of being involved in a crash, so your insurance costs more. Find out more on the impact of where you live.
• Rate classes — Using your vehicle to drive to work is different from using it for your business. ICBC charges different rates accordingly. There are more than 150 different rate classes to cover all the different ways B.C. drivers use their vehicles. Find out more about the common rate classes.
• Your claims history — If you have been at fault in a crash, your insurance will cost more. The frequency of claims is taken into consideration. Likewise, you will get better discounts if you maintain a crash-free record. Find out more about how your claims history might affect your insurance costs.
• Your vehicle —The type of vehicle you drive will not affect the cost of your Basic coverage. It will however, affect the cost of any optional vehicle coverage that you choose, such as Collision or Comprehensive. If your vehicle costs a lot to repair or replace, you can expect it to cost more to insure.
• Extra coverage — The more Optional coverage you buy, the higher your insurance premiums will be. Get more detail in understanding your insurance costs.