By Ka Hing Cheung

Turning 18 is an exciting milestone—it’s a time when you officially reach adulthood and gain the legal ability to make major life decisions. One question that many young adults ask is whether they can purchase and insure a car without the help of a parent or guardian. While the rules may vary depending on where you live, for most people, the answer is yes. Here’s how it works in British Columbia, where ICBC sets specific requirements around licensing, vehicle registration, and insurance.

The Legal Age for Vehicle Registration

In most provinces across Canada, 18 is the legal age at which you can enter into contracts independently, including buying a vehicle and purchasing an insurance policy. At 18, you are considered an adult in the eyes of the law and can make financial decisions on your own. This means you can:

• Buy a car: Whether it’s a new or used vehicle, purchasing a new car at 18 is entirely legal.
• Register the vehicle in your name: When you buy a vehicle, you can complete a vehicle registration with the appropriate government agency, like ICBC in BC, under your own name.
• Purchase insurance: At 18, you can buy an ICBC insurance policy on your own, as long as you meet the requirements set by your insurance provider.

When registering a vehicle in British Columbia, to register a vehicle, you must bring all documentation, returned mail, and correspondence regarding your vehicle to your broker. Your broker will process an initial registration for your vehicle and provide you with your vehicle registration document, which serves as proof that the vehicle is legally registered in your name.

However, while you can buy and register a vehicle at 18, there is an important consideration: if you’re under 19, you cannot independently apply for a driver’s licence in British Columbia. According to the Motor Vehicle Act (Section 032), a parent or family guardian must apply on your behalf. This means that although you can own and register the vehicle, you’ll need a parent or guardian to help you obtain a valid driver’s licence before you can legally drive the vehicle.

Even if you’ve purchased and registered the vehicle, you won’t be able to legally drive it until you have that licence. Once you turn 19, you’ll be able to apply for and hold a full, independent driver’s licence without parental consent.

Car Insurance for 18-Year-Old New Drivers

One of the most important things to consider when buying a vehicle as a young adult is the cost of car insurance. While the act of purchasing and registering insurance is straightforward for an 18-year-old, the cost can be quite high.

In British Columbia, all drivers are legally required to have Basic Autoplan insurance from ICBC. This mandatory coverage includes third-party liability, accident benefits, underinsured motorist protection, and uninsured motorist protection. Beyond Basic Autoplan, optional coverages available include Collision, Comprehensive, Hit and Run, New Vehicle Replacement Plus (NVR+), Specified Perils, and Income Top-Up. These optional coverages allow drivers to customize protection based on their needs, budget, and the value of their vehicle.

Insurance rates for young drivers, especially those under 25, tend to be more expensive. Insurance rates for young drivers tend to be higher because insurers use risk data to determine premiums, and less driving experience usually means higher risk. While rates for 18-year-olds will be lower than for newly-licensed drivers, they can still be quite steep. However, there are ways to reduce the cost:

1. Choosing a safe, reliable car: Insuring a vehicle with a strong safety record or a lower risk of theft can help reduce premiums.
2. Maintaining a clean driving record: Safe driving is one of the best ways to reduce insurance rates over time.
3. Adding a parent or guardian to the policy: In some cases, having a more experienced driver on the policy can lower rates.
4. Paying annually: If you can afford it, paying your premium in one lump sum rather than monthly can sometimes save money.

It’s important to note that some insurers may also require a parent or guardian to co-sign or be listed as the primary policyholder when you’re first starting out. This is not because you’re unable to purchase insurance, but because young drivers typically lack the experience to get the best rates without an experienced driver on the policy.

What You Need to Buy a Car and Auto Insurance

If you’re ready to buy a car and insure it in your name, here are the basic steps:

1. Get your driver’s license: You’ll need a valid driver’s license before you can purchase and insure a vehicle. In BC, the N License (Novice) is the most common for those under 19.
2. Choose a vehicle: Research the best vehicle for your needs and budget. When purchasing certain vehicles, a Commercial Vehicle Inspection Report is required to verify that the vehicle has been inspected and passed by an approved vehicle inspection facility. For used vehicles, a mechanic’s inspection is strongly recommended.
3. Register the vehicle: Head to your local licensing office (like ICBC in BC) to register the car in your name. Make sure to bring proof of ownership (usually a bill of sale) and your driver’s license.
4. Buy insurance: You can shop around for car insurance online or through an agent. Be sure to compare rates to find the best deal. Your insurer will require details about the car (like the make, model, and VIN) as well as your driving history.

Special Considerations for Young Drivers

While the process of buying a car and getting insurance at 18 is straightforward, there are still some things to be aware of as a young driver. Insurance providers often have special conditions for drivers under 25, and these can impact your coverage options and premiums.

• Insurance for new drivers: If you’re a new driver, many insurers offer “new driver” policies. These typically come with higher rates but may also offer coverage tailored to less experienced drivers.
• High-risk insurance: Some young drivers may be classified as “high-risk” due to a lack of driving experience. If this happens, it might be more difficult to find affordable insurance options. However, with a clean driving record, you can expect rates to go down over time.
• Discounts: Many insurers offer discounts for young drivers who complete driver education courses or take advanced driving classes. These can help lower your premiums and improve your driving skills at the same time.

Consider Getting Help with the Car Buying Process

While it is legal to purchase and insure a vehicle on your own at 18, buying a vehicle is a significant financial commitment. If you’re buying a used car, you may want to consider having a parent or a knowledgeable adult accompany you during the process. An experienced buyer can help ensure you’re getting a good deal, understand the terms of the purchase agreement, and avoid being taken advantage of.

Having an adult with you can also help with the negotiation process, ensuring that you’re not paying more than the vehicle is worth or falling for any potential scams. It’s always a good idea to have the vehicle inspected by a trusted mechanic before you make the purchase.

Conclusion

In short, yes, you can buy and insure a vehicle at 18 in many provinces across Canada, including British Columbia. You’ll need to have a valid driver’s licence, and you’ll likely face higher insurance premiums as a new driver. While the process is straightforward, it’s important to be aware of the financial implications of insuring and maintaining a car at such a young age.

By understanding how the system works, choosing the right vehicle, and being proactive about keeping your driving record clean, you can manage the costs and responsibilities that come with car ownership. And, as always, don’t hesitate to seek advice from trusted adults or professionals to ensure you’re making the best decisions for your future.

About King Insurance

Located at the northwest corner of Marine Drive and Main Street, King Insurance proudly serves not only the South Vancouver communities of Marpole, Sunset, Oakridge, Victoria–Fraserview, and nearby areas like Marine Gateway and Marine Landing, but also clients across Richmond and the entire Lower Mainland. 

Ka Hing Cheung is proud to work in the insurance industry, helping people manage risk and protect what matters most. Ka Hing is committed to ongoing learning and enjoys helping clients find the right coverage at the best available rate, while making sure they understand their options clearly.

Related Links:

https://www.icbc.com/vehicle-registration/buy-vehicle/registering-a-vehicle-in-B-C

https://kinginsurance.ca/adding-a-spouse-to-your-car-registration-in-bc-what-you-need-to-know/

https://www.icbc.com/insurance/buy-renew-cancel/insurance-payment-plan