How Car Insurance Works in Vancouver

If you're new to driving in British Columbia or just curious about how car insurance works in Vancouver, there’s something unique you should know: BC is the only province in Canada where car insurance is provided by a government-owned company.

ICBC: Understanding How Car Insurance Works in BC

The Insurance Corporation of British Columbia (ICBC) is a non-profit, public auto insurer. Because it’s not profit-driven, its rates tend to be more consistent and generally fair compared to private insurance markets in other provinces.

When you insure a vehicle in BC, your coverage is typically broken down into three main components:

1. Third-Party Liability Coverage

This part of your insurance protects you financially if you're responsible for damaging someone else’s vehicle or property—or causing injury to another person—while driving.

Coverage amounts usually range from $1 million to $5 million. At J&A Rentals, we insure our customers with $2 million in third-party liability, offering a solid level of protection without overcharging.

2. Collision Coverage: How Car Insurance Works in BC

Collision coverage helps pay for damage to the rental vehicle in the event of an at-fault accident. This is where the deductible comes in—the amount you’ll need to pay out of pocket before insurance covers the rest.

Deductibles typically range from $300 to $2,500. Many rental companies set the deductible high (usually around $2,500) to advertise lower daily rental rates.

At J&A Rentals, we take a more balanced approach:

• Our standard deductible is $1,000

• We also offer customers the option to reduce it to $500 or even $300, depending on their preference

Keep in mind, the lower the deductible, the higher the insurance premium—but the peace of mind may be worth it.

3. Comprehensive Coverage

Comprehensive coverage takes care of things that aren’t collision-related—think rock chips, cracked windshields, or pothole damage. Like collision, it’s based on a deductible system.

Rock chips are a common issue in BC, especially on highways. That’s why we always include $300 comprehensive coverage as standard for our rentals, making sure you're covered without surprise out-of-pocket expenses for everyday wear and tear.

Final Thoughts

Understanding how car insurance works in BC helps you make smarter decisions when renting. At J&A Rentals, our goal is to provide flexible, transparent coverage options so you can drive with confidence—whether you're here for a weekend or a long-term stay.

If you have any questions about our insurance policies or want to customize your coverage, feel free to reach out to our team. We’re here to help.