1. What optional insurance can cover

Optional insurance products include the following in addition to basic insurance coverage:

Vehicle Collision Comprehensive Specified Perils Vehicle in Storage Limited Depreciation Coverage Replacement Cost Coverage Collector and Vintage Vehicles Equipment Motor Vehicle Equipment Excess Special Equipment Motor Home Contents

Individual Extended Third Party Liability Excess Underinsured Motorist Protection Loss of Use Vehicle Travel Protection Roadside Plus

For further details about optional insurance products, customers are encouraged to contact their local independent broker.

2. Most commonly purchased optional insurance coverages

Collision

• With this optional insurance, ICBC pays you, without regard to fault, for damage to your car caused by a collision with another car or any other object or your car overturning.

Comprehensive

• Under comprehensive coverage, ICBC pays you, for damage to your car from all causes, other than collision, such as theft (of the car itself or its parts), fire, flood, windstorm, glass breakage, vandalism, hitting or being hit by an animal, or by falling or flying objects.

Extended Third Party Liability

• This coverage protects you (and anyone driving your car with your permission), if a claim is made against you by another person ("third-party"), alleging that you were negligent or otherwise at fault. Thus this coverage will make payments on your behalf to that injured third-party, in the event your car is involved in an accident that results in serious injury or death to others or damage to their property.
• Basic insurance gives you the required minimum amount, generally $200,000. Your optional insurance can provide additional amounts up to and including $5 million.

3. How optional insurance rates are set

There are five main factors that determine optional insurance rates:

1. The vehicle you drive (“rate group”)
   • If your vehicle is more expensive to repair or replace, tends to be involved in crashes more frequently or tends to be stolen more frequently – all these factors and others can cause your optional insurance rates to be higher.
2. The coverage and deductibles you choose
   • For example, the more Third Party Liability coverage you choose (above the amount provided through basic insurance), the more it costs.
   • When you choose a higher deductible, you are agreeing to take on more of the risk associated with a potential loss. ICBC is therefore taking on less risk and will charge you less.
3. What you use your vehicle for (“rate class”)
   • e.g. driving to work or school, pleasure, business, etc.
4. Where you live (“territory”)
   • If you tend to drive where there’s lot of traffic, you have a higher chance of being in a crash. (That’s why rates in the Lower Mainland are the highest in BC.)
   • If autocrime is a problem where you live, then you’re more likely to have your vehicle stolen, broken into or vandalized.
   • For non-commercial vehicles, your territory is decided by where you park your vehicle when it’s not in use.
5. Your claims record
   • If you have a long record of claims-free driving, you get increasing discounts.
   • If you have a record of claims, you may have to pay surcharges to reflect your record on increased risk.

Copyright © 2008 ICBC - Insurance Corporation of British Columbia