As announced in November of 2016, ICBC has plans to drop insurance coverage for high-end luxury cars. This cut in coverage would only be applicable to private passenger vehicles, such as Lamborghinis or high-end Maseratis. This change would not affect commercial trucks, collector cars, limousines and motorhomes.
In the past three years, there has been approximately 30 percent more luxury vehicles on the road. These vehicles cost more than six times the amount to fix after an accident than an ordinary vehicle. ICBC made the decision to remove this coverage in order to save on high repair costs, which have been driving up basic autoplan rates.
Basic insurance rates were expected to increase by 6.4% in 2017, 7.9% in 2018, 9.4% in 2019 and 7.9% in 2020. In an effort to offset these rate hikes, ICBC made the decision to end luxury car coverage for vehicles valued at over $150,000.
Once this change takes effect, luxury vehicle owners will be required to purchase their auto coverage through private insurers. Drivers will still need to have enough coverage to protect themselves and others in the event of an accident. However, this insurance will no longer be provided through ICBC’s public insurance plan.
In the meantime, luxury vehicle owners are still able to purchase their autoplan insurance through ICBC. However, the premium charged on new or renewal policies made after January 8, 2017 will be doubled from the previous year. Vehicle owners will also need to ensure that their premiums can fully cover the cost of any repairs.
For more information and for a list of luxury vehicles, visit ICBC Coverage for Luxury Vehicles.
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