So, you’ve just purchased a shiny new ride—congrats! But before you rush to cancel your old car’s insurance, take a moment to consider your options. Many BC drivers mistakenly believe that cancelling their existing ICBC insurance and starting fresh with a new policy is the best way to go.
The truth? Cancelling could actually cost you more in the long run. If you need help with the down payment for the new car, consider trading in your current vehicle. Instead, transferring your existing policy to your new car is often the smarter, more cost-effective move.
Why Cancelling Your Auto Insurance Could Cost You
While cancelling might seem like a logical step, it comes with potential downsides that could hit your wallet:
- Cancellation Fees
- There is a $30 cancellation fee when cancelling a policy.
- If you are financing your policy with a monthly payment plan, you may also have to pay any outstanding balances. The structure of monthly payments for car loans and the implications of down payments on overall loan amounts can affect your financial obligations.
- Surrendering Your Old Licence Plates
- When cancelling a policy, both the licence plates associated with your policy and your policy itself must be surrendered.
- If you are particularly attached to the licence plate you already have, especially if it is a Personalised Number Plate, you can instead transfer your licence plate to your new vehicle.
- Coverage Gaps
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- Cancelling your old policy before your new one is active could leave you temporarily uninsured.
- This gap can create potential risks, especially if there are delays in processing the new policy.
- An individual’s driving history can affect the approval process for car loans and insurance premiums. Maintaining a clean driving history is crucial for better financial outcomes.
Make sure to keep your insurance documents readily available to avoid any issues during the transfer process.
So what’s the Best Option?
Instead of cancelling, the best course of action is often to transfer your existing ICBC insurance to your new vehicle. This allows you to keep your current benefits, avoid coverage gaps, and ensure you’re getting the most out of your insurance policy.
Here’s how the process works:
- Visit an Autoplan Broker
- Bring your new vehicle registration and current insurance details to your broker to initiate the transfer.
- Review and Adjust Coverage
- Newer cars often require additional coverage like comprehensive or collision insurance—your broker can help tailor the policy to your needs.
We’ll Make Optional Coverage Easy For You
If you’re in the Lower Mainland and need expert guidance, King Insurance offers hassle-free insurance transfers and renewals. Since 2016, we’ve been helping drivers across Vancouver and surrounding areas with trusted, professional service. Conveniently located at 8187 Main Street, Vancouver, BC, we offer:
- Hassle-Free ICBC Renewals: Easily renew online or via email, without needing to visit in person.
- Multilingual Support: Our friendly team speaks Cantonese and Mandarin to serve our diverse community better.
- Comprehensive Coverage Options: We specialize in ICBC auto insurance and additional coverage options to suit your unique needs.
- Optional Coverage: Enhance your policy with additional coverage options tailored to your needs.
- Leased Vehicle Considerations: Understand the financial aspects and implications of leasing a vehicle, including the need for regular servicing and mileage limitations.
Final Thoughts on Vehicle Insurance
Before making any decisions, take the time to weigh your options carefully. Cancelling your old car’s insurance might seem convenient, but transferring your existing policy is the smarter way to save money, retain benefits, and ensure seamless coverage.
Understanding the purchase price and additional associated costs when buying a car is crucial. Ensure all steps are complete to avoid any lapses in coverage. It’s also important to understand the financial implications, warranty considerations, and associated risks when making purchasing decisions.
If you need help navigating your auto insurance options, King Insurance is here to assist. Remember, conducting a test drive and thorough inspection is essential when purchasing a used vehicle. Contact us today or visit our office to speak with our knowledgeable team and get your new car insured the right way.
Be aware of the necessary steps and documentation required for registering a used vehicle after purchase. Additionally, obtaining a vehicle history report is vital when purchasing used cars. Our team can also provide details related to vehicle registration and licensing services. We highlight the range of vehicles available for purchase, including both new and used options.