Last updated 2025-01-06

Insurance policy cancellation or transfer

The benefits and requirements of transferring an insurance policy to a replacement vehicle, rather than cancelling the policy when the original vehicle involved in a crash is a total loss, or customer sells their vehicle.

Options

When a vehicle is determined a total loss, the insurance policy is not cancelled automatically; instead, once the customer accepts a total loss settlement, they have the option to
  • cancel their insurance policy, or
  • transfer it to a replacement vehicle.
Vehicle replacement decision Details
Customer does not intend to replace their vehicle within a relatively short period of time Advise the customer to immediately take their licence plates to an Autoplan broker to discuss what options to consider prior to cancelling their insurance policy.
Customer intends to replace their vehicle
Advise the customer to
  • contact their Autoplan broker to
    • discuss their options, and
    • ensure that the existing coverage is compatible with the replacement vehicle, and
  • consider whether it is cost effective for them, if they transfer their existing insurance policy to a replacement vehicle rather than cancelling their insurance policy.

Transfer requirements

Regulation allows a customer 10 days from the date of purchasing a replacement vehicle, to transfer their insurance from the original vehicle to their replacement vehicle, provided that the
  • replacement vehicle is
    • a replacement for the one named in the owner's certificate, and
    • the same vehicle type as the one that was disposed of, and
  • original vehicle named in the owner’s certificate has been surrendered to ICBC with a signed Vehicle Ownership Transfer Agreement (CL96), if applicable.
Important: For insurance policies with an effective date on January 6, 2025 or later, if the original or the replacement vehicle is leased, the 10-day substitute vehicle provision (10-day rule) cannot be used. For additional information, refer to topic, 10-day substitute vehicle provision criteria.
ICBC must advise the customer to contact their Autoplan broker to
  • discuss their options, and
  • ensure that the existing coverage is compatible with the replacement vehicle.

Transfer benefits

Transferring an insurance policy to a replacement vehicle can help the customer avoid new plate and cancellation fees. When there is no other source of coverage, the insurance policy can provide
  • Underinsured Motorist Protection (UMP) coverage for the customer and members of their household
  • Third Party Liability Extension coverage for the customer and members of their household under certain circumstances
  • Enhanced Accident Benefits coverage for the customer and members of their household
  • Temporary Substitute Motor Vehicle coverage for the customer and members of their household, and
  • Rental Vehicle coverage provided by RoadStar or RoadsidePlus for the customer and their spouse.