If you’re planning to finance a car in British Columbia, there’s one big monthly cost you shouldn’t overlook — insurance. Many people focus so much on the car payment itself, they’re shocked when the insurance bill turns out to be just as high (or even higher).
In this article, we’ll break down how insurance works in BC, why it can be so expensive, and what you can do to keep costs down — especially if you’re financing or buying a car with bad credit.
How Insurance Works in BC (ICBC Overview)
In BC, basic auto insurance is provided through ICBC (Insurance Corporation of British Columbia). It’s mandatory. That means no matter who you are or where you live, you have to get your basic coverage from ICBC.
Basic coverage includes:
- Third-party liability (if you injure someone or damage property)
- Accident benefits (medical coverage, income replacement)
- Uninsured motorist protection
- Hit-and-run coverage
You can also add optional coverages, such as:
- Collision (pays for damage to your car in a crash, even if you’re at fault)
- Comprehensive (covers theft, vandalism, weather damage, etc.)
- Extended third-party liability
You can get optional coverage through ICBC or private insurers — but your base coverage always goes through ICBC.
Why Car Insurance Can Be More Expensive Than Your Car Loan
Here’s a common situation: someone finances a used car for $300/month, but their insurance ends up being $350/month or more. How is that possible?
There are a few key reasons:
- Driving History
- If you’re a new driver or have tickets/accidents, ICBC sees you as high-risk.
- Premiums go up fast — even one at-fault crash can raise your rates for years.
- Vehicle Type
- Some cars are simply more expensive to insure, especially:
- Sports cars
- Luxury brands
- Older vehicles with poor safety ratings
- Some cars are simply more expensive to insure, especially:
- Usage
- If you’re using the car for business (like Uber or DoorDash), expect to pay more.
- Even commuting long distances can increase rates.
- Coverage Level
- Adding collision and comprehensive coverage adds a lot.
- Choosing a lower deductible = higher monthly premiums.
- Location
- ICBC uses your postal code. Some areas have more claims, which = higher rates.
- Lower Mainland residents tend to pay the most.
- Credit Score
- While ICBC doesn’t use credit scores directly, people with poor credit often finance cars that are riskier to insure — which pushes premiums higher.
Real Example
Let’s say you finance a 2017 Dodge Charger (used, but sporty). Your loan is $320/month. If you’re under 25 with one ticket and live in Surrey, you might be quoted over $400/month for insurance — with a $500 deductible.
That adds up to $720+ per month, which can be more than a newer, safer car in a lower-risk area.
How to Keep Insurance Costs Down
If you want to avoid sky-high insurance while financing a car, follow these tips:
1. Choose the Right Car
- Vehicles with good safety ratings, lower theft rates, and affordable parts tend to cost less to insure.
- Examples: Honda Civic, Toyota Corolla, Mazda 3, Hyundai Elantra.
2. Increase Your Deductible
- If you’re a safe driver, consider raising your deductible to lower the monthly rate.
3. Bundle Optional Coverage
- Shop around for collision and comprehensive coverage from private insurers to compare prices.
4. Improve Your Driving Record
- Clean driving = lower rates over time.
- Take a defensive driving course if eligible — it may help.
5. Avoid Luxury or Performance Cars
- Tempted by a BMW or Mustang? Be ready to pay more in both payments and insurance.
6. Get a Quote Before You Buy
- Always call ICBC or check online before finalizing your car purchase. You can ask for an estimate based on the VIN or car model.
Should You Include Insurance in Your Car Budget?
Absolutely. When figuring out what car you can afford, always add insurance to your monthly cost. A $350 car payment sounds great — until you realize your all-in cost is closer to $700.
As a general rule:
- If you’re a new driver or have poor credit, budget at least $300–$500/month for insurance alone, depending on the car.
- For experienced drivers with clean records, insurance can be closer to $150–$250/month.
Final Thoughts
Yes, car insurance in BC can be more expensive than your car loan — especially if you’re not careful with what you buy or where you drive. But with the right planning, you can keep your total monthly cost manageable.
At GettingDeal.com, we help people across BC get car loans that fit their lifestyle — and we can help you pick the right car that keeps insurance affordable too.
Ready to get approved and want to avoid surprises?
👉 Visit GettingDeal.com and check what you qualify for — fast, private, and with zero pressure.