Plate cancellation or transfer of a policy
Summary of the requirements and benefits for transferring an insurance policy.
Cancellation versus transfer decision
In total loss situations, the licence plate and insurance papers must be returned to the customer. This enables the customer to cancel or if applicable transfer their coverage.
When a vehicle is a total loss, insurance is not cancelled automatically. When the customer accepts a total loss settlement, the following happens:
| When the customer ... | Then ... |
|---|---|
| does not intend to replace the vehicle within a relatively short period of time | the customer should be reminded to take their plates to an Autoplan broker to discuss their options prior to cancelling their insurance. Note: ICBC's policy in backdating cancellations is outlined in Cancellation and Refunds.
|
| intends to replace a vehicle | it may be more cost-effective for the insured to transfer an existing policy to the new vehicle rather than cancelling. Note: ICBC representatives should advise the customer to see their Autoplan broker to discuss this option and to ensure that the existing coverage is compatible with the replacement vehicle.
|
Requirements to transfer a policy
Regulation allows a customer 10 days from the date of purchasing a replacement vehicle to transfer their insurance provided that the:
- new vehicle is a replacement for the one named in the owner's certificate, and
- vehicle originally named in the owner’s certificate has been surrendered to ICBC with a signed Vehicle Ownership Transfer Agreement (CL96).
ICBC representatives should advise the customer to see their Autoplan broker to discuss this option and to ensure that the existing coverage is compatible with the replacement vehicle.
Benefits of transfer of a policy
Transferring the policy to a new vehicle can help the customer avoid new plate and cancellation fees. When there is no other source of coverage, the policy can provide:
- Underinsured Motorist Protection coverage for the customer and members of their household
- Third Party Liability extension coverage for the insured and members of their household under certain circumstances
- Enhanced Accident Benefits coverage for the insured and members of their household
- Temporary Substitute Motor Vehicle coverage for the insured and members of their household, and
- Rental vehicle coverage provided by RoadStar or RoadsidePlus for the insured and their spouse.