If you owe ICBC (Insurance Corporation of British Columbia) hundreds or even thousands of dollars, paying the entire balance at once may not be realistic. You may also need to get your driver’s licence renewed, insure a vehicle or simply deal with debt that has been hanging over you for years.
So, how do you get rid of ICBC debt?
The simplest option is to pay the balance in full, but that is not your only possible route. ICBC allows customers to make partial payments toward debt, and in some circumstances you may be able to arrange repayment over time. If you have serious financial problems involving other debts as well, eligible ICBC debt may also be dealt with through a consumer proposal or bankruptcy.
The right approach depends on what you owe and why you owe it.
How do you get rid of unpaid ICBC debt?
Start by finding out exactly how much you owe and what the debt is for.
“ICBC debt” can include several different obligations, such as:
- Unpaid Autoplan premiums
- Debt from a defaulted ICBC payment plan
- Driver Penalty Point Premiums
- Driver Risk Premiums
- Provincial violation tickets and fines (such as unpaid speeding tickets)
- Vehicle licensing or registration amounts
- Certain amounts ICBC is entitled to recover after paying a claim arising from a motor vehicle accident
Some ICBC-related amounts may also involve fines or other obligations imposed under laws administered by the provincial government, which is one reason the type of debt matters.
The type of debt matters because different rules may apply. As with other government debts, the consequences and available repayment options can depend on the specific amount owed and the law governing it.
You can now check eligible debts through My ICBC under “Billing & payments.” ICBC also allows customers to pay ICBC debt online, including making partial payments.
If you do not recognize the debt or are unsure what it relates to, contact ICBC before paying it. If you believe an ICBC debt is incorrect, contact ICBC first. Depending on the type of debt, additional dispute, appeal or legal processes may also be available.
Can you make partial payments on ICBC debt?
Yes.
ICBC introduced the ability to make partial debt payments through My ICBC in 2026. When you sign in, you can select the amounts you owe and enter the amount you want to pay.
This can be useful if you cannot afford to clear a large balance immediately.
However, simply making a partial payment does not necessarily remove restrictions attached to your account. For example, if outstanding debt is preventing you from renewing a driver’s licence, paying $100 toward a $5,000 balance does not automatically mean ICBC will allow the renewal.
If you need to renew a licence or complete another ICBC transaction before the balance is fully paid, contact ICBC Account Services and ask what arrangements are available.
Can you set up a payment arrangement with ICBC?
In some circumstances, yes.
B.C.’s Motor Vehicle Act specifically recognizes arrangements between ICBC and people who owe certain motor vehicle debts or fines.
For example, ICBC may issue a shorter-term driver’s licence, lasting more than 90 days but less than five years, to someone who has entered into an arrangement with ICBC to repay qualifying debt. The driver must continue complying with that arrangement or ICBC may cancel the licence.
There is no single repayment schedule that applies to every customer. If you cannot pay your balance in full, call ICBC Account Services at 604-661-2723 or 1-800-665-6442 and ask about your options.
Remember that ICBC’s regular Autoplan payment plan is different. That program lets you pay the premium for your current insurance policy over time. A repayment arrangement deals with money you already owe.
Will ICBC forgive or reduce your debt?
ICBC does not publish a general debt-forgiveness program that allows customers to simply ask for ordinary ICBC debt to be written off.
Its public information about payment-plan debt focuses on paying the outstanding balance, and My ICBC allows full or partial payments.
That does not mean every form of ICBC debt must necessarily be repaid dollar for dollar in every financial circumstance.
If you are insolvent and have substantial unsecured debts you cannot afford to repay, a consumer proposal may allow you to offer your unsecured creditors a percentage of what you owe, extend the repayment period or both. If the proposal is accepted under the applicable rules, your creditors accept the repayment terms set out in the proposal.
Under Canada’s Bankruptcy and Insolvency Act, a consumer proposal must be completed within five years. Eligible ICBC debt may potentially be included in a consumer proposal, although whether a particular ICBC balance can be included depends on the nature of the debt.
A consumer proposal can potentially include many types of debt, including amounts owed to private creditors and some government creditors such as the Canada Revenue Agency. Whether a particular ICBC debt can be included depends on the nature of the debt.
Can bankruptcy offer formal debt relief?
Some ICBC debt may be discharged through personal bankruptcy, but there are important exceptions.
Filing for bankruptcy generally triggers an immediate stay of proceedings. This prevents creditors from continuing ordinary collection actions for debts covered by the bankruptcy, although exceptions apply.
Bankruptcy generally releases an individual from most debts once the bankruptcy process and discharge requirements are completed. However, certain debts survive bankruptcy, including court-imposed fines, penalties and restitution orders. Debts arising from fraud or fraudulent misrepresentation can also receive different treatment.
Because “ICBC debt” covers several types of obligations, you should not assume that bankruptcy or a consumer proposal will eliminate your particular balance.
If your ICBC balance is part of a larger debt problem involving credit cards, a car loan or other unsecured debts, a Licensed Insolvency Trustee can determine which debts can be included and explain the consequences of each option.
For someone dealing with several debts they can no longer manage, a consumer proposal or personal bankruptcy may provide a path toward a financial fresh start, although the treatment of ICBC debt depends on the type of amount owed.
What happens if you don’t pay ICBC debt?
Ignoring ICBC debt can make it harder to get back on the road.
ICBC says outstanding amounts such as provincial violation tickets, penalty point premiums and Autoplan debt can affect your ability to renew or upgrade your B.C. driver’s licence.
B.C. law also gives ICBC authority to refuse to issue a driver’s licence in certain circumstances involving motor vehicle indebtedness.
Defaulted Autoplan payment-plan debt can have additional consequences. ICBC says it may cancel optional coverage and use a bailiff to recover active licence plates if an outstanding balance remains unpaid. A payment-plan default can also place you on a cash-only basis for at least one year, meaning you cannot immediately return to regular monthly insurance financing.
For more detail on how debt affects vehicle insurance renewal, see Can You Renew ICBC Insurance If You Owe Money?
How do you pay ICBC debt?
The easiest method for many customers is My ICBC.
Sign in and go to:
Account → Billing & payments → Money owed to ICBC → Make a payment
You can select the debt you want to pay and enter a payment amount. Online payments generally appear on your account within 10 minutes.
You can also make eligible payments at an Autoplan broker, ICBC driver licensing office or Service BC centre. ICBC accepts payments by mail as well, although mailed payments can take about two weeks to process.
If you need insurance or a driver’s licence soon, take processing time into account.
What should you do if you can’t afford the debt you owe ICBC?
If you do not have enough money to pay the entire remaining balance immediately, check My ICBC and determine exactly what you owe.
First, check My ICBC and determine exactly what you owe. If you can afford to reduce the balance, you can make partial payments online.
If the debt is affecting your ability to drive, renew your licence or insure a vehicle, contact ICBC Account Services and ask whether a repayment arrangement is available for your situation.
And if your ICBC debt is only one part of a much larger financial problem, consider speaking with a Licensed Insolvency Trustee about formal debt-relief options.
Once any ICBC restrictions have been resolved, King Insurance can help you understand your Autoplan insurance options and get the coverage you need to get back on the road.
About King Insurance
Located at the northwest corner of Marine Drive and Main Street, King Insurance proudly serves the South Vancouver communities of Marpole, Sunset, Oakridge, Victoria-Fraserview and nearby areas such as Marine Gateway and Marine Landing, as well as clients across Richmond and the Lower Mainland.
King Insurance can also help B.C. drivers review and renew their ICBC Autoplan insurance and understand their available coverage options.
Ka Hing Cheung is proud to work in Canada’s insurance industry, helping people and businesses manage risk and protect what matters most. Ka Hing is committed to ongoing learning and helping customers understand their available coverage options clearly.
Related Links
Can You Renew ICBC Insurance If You Owe Money? https://kinginsurance.ca/can-you-renew-icbc-insurance-if-you-owe-money/
Moving to British Columbia: What You Need to Know About ICBC
https://kinginsurance.ca/moving-to-british-columbia-what-you-need-to-know-about-icbc/
ICBC: Payment Plan Debt
https://www.icbc.com/insurance/buy-renew-cancel/insurance-payment-plan/payment-plan-debt
ICBC: Prepare for Your Renewal
https://www.icbc.com/insurance/buy-renew-cancel/renewal-reminder