There are two discount options available — the low-kilometre discount and the
distance-based discount. These discounts form part of usage-based insurance.
For annual policies
effective before June 1, 2023, ICBC offers a 10% low-kilometre discount on Basic, Extension Third Party Liability, and Collision coverages for eligible customers who drive their vehicle a distance of less than 5,000 km per year.
For annual policies
effective on or after June 1, 2023, ICBC offers:
- 10% low-kilometre discount on Basic coverage for eligible customers who drive their vehicle a distance of less than 5,000 km per year.
- 10-15% distance-based discount on Extension Third Party Liability, Collision, Comprehensive and Specified Perils coverages for eligible customers who drive their vehicle a distance of less than 10,000km per year.
If a customer drives less than 5,000 km and have met all other eligibility requirements, then they will be eligible for both the low-kilometre discount on their Basic insurance, and the distance-based discount on their applicable ICBC optional coverages.
Who would benefit?
The discounts may benefit those who do not regularly use their vehicle, for example, those who only drive on evenings and weekends, use public transportation to commute to school or work during the week, or simply have a second vehicle that’s not used very often.
The usage-based discounts are based on the mileage driven over the last 12 months. This is determined by an odometer reading from the previous policy term, and another at the policy’s renewal a year later.
annual policies are eligible for the discounts (not short-term policies).
There are certain
rate classes that are not eligible, such as motorcycles and collector vehicles because their rate classes already reflect low kilometres travelled as most of these vehicles are not used year round. This discount is meant for those who are in rate classes where the majority of the vehicles are driven longer distances.
Talk to your broker if you have questions about your vehicle’s eligibility.
Collecting odometer readings
If you have a vehicle that may qualify for this discount, you need to provide your vehicle’s odometer reading at the time of your renewal or new policy purchase.
How the discount works
qualifying period for the usage-based discounts starts when you provide your Autoplan broker with the first vehicle odometer reading.
In a year’s time, at your annual renewal, the odometer reading will need to be provided again to determine if the vehicle was driven less than the distance travelled requirement. If eligible, the discount will then be applied at that time to your renewed policy.
Distance travelled requirement
Vehicles must have been driven less than the maximum allowable kilometres to be eligible for usage-based insurance discounts.
The distance travelled requirement varies by discount type.
Usage-based insurance discount||Maximum allowable kilometres per year|
|Low-kilometre discount||The vehicle has travelled less than 5,000 km.|
|Distance-based discount||The vehicle has travelled less than 10,000 km.|
Providing an odometer reading to your broker
To provide the odometer reading at renewal or when you take out a new policy, you will need to show your broker one of the following:
A photo of the vehicle odometer taken within the last seven days.
A receipt or work order with an odometer reading dated within the last seven days from either a garage, a mechanic, an auto shop or auto dealership.
A reading through a service or app which reports vehicle information and diagnostics, generated within the last seven days.
Providing an odometer reading after your policy is in effect
For policies effective February 1, 2021, or later, customers may provide proof of eligibility any time during their policy period. Proof must be dated no more than seven days prior to your renewal or new policy purchase date. Eligible customers will receive a prorated refund to reflect the discount, based on the date proof is submitted to ICBC. You can
submit your reading and required proof online.
Usage-based discounts cannot be transferred to another vehicle mid-term.