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
|
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.