If you’re someone who racks up less than 15,000 km behind the wheel, ICBC’s latest change could put real money back in your pocket. As of June 1, 2025, the insurer has expanded its optional distance-based discount program—offering savings of up to 15% on Optional insurance coverage for drivers who travel less than 15,000 kilometers per year. It’s a meaningful update for anyone who works from home, relies on transit, or keeps their driving distance low throughout the year. With this move, ICBC is making it clear: the less you drive, the less you should have to pay.
The update adds a new layer to ICBC’s usage-based pricing model, building on the existing Basic insurance discount for drivers logging fewer than 5,000 km a year. It’s one of several usage-based insurance options ICBC now offers to reflect real-world driving behavior. Now, more British Columbians who keep their mileage low—whether by choice or lifestyle—can access real savings.
Here’s a closer look at what changed, who qualifies, and how you can make sure you’re not missing out.
What’s New as of June 1?
ICBC’s distance-based discounts are not new—but the June 2025 update significantly expands eligibility for this usage-based insurance.
Previously, drivers who traveled fewer than 5,000 kilometers in a year were eligible for a 10% discount on their Basic insurance coverage. It’s not a new discount. What’s new is the introduction of an additional ICBC Optional coverage discount for low-mileage drivers.
Drivers who travel under 15,000 kilometers annually may now qualify for a 10–15% discount on several Optional insurance coverages, including:
- Collision
- Comprehensive
- Extended Third Party Liability
- Specified Perils
If you qualify for both the Basic and Optional discounts—by driving under 5,000 km a year—you can save 10% on their Basic coverage and up to 15% on select ICBC Optional coverages, including third party liability and more—resulting in significant savings across their overall premium.
Discount Eligibility: Who’s Eligible?
Eligibility is based on your annual driving distance and the type of policy you hold.
To qualify:
- You must drive less than 15,000 km annually (for Optional discount)
- You must drive less than 5,000 km annually (for both Basic and Optional discounts)
- You must hold a 12-month ICBC policy (short-term policies don’t qualify)
- You must submit two odometer readings, taken one year apart
Not all vehicle types are eligible. Motorcycles and collector vehicles are excluded, as their insurance rates already reflect limited seasonal usage. If you own collector vehicles, you may already be benefiting from a specialized pricing structure that accounts for infrequent use.
You must also have an eligible vehicle—most standard private passenger vehicles qualify, but some exceptions may apply.
If you’re unsure about your vehicle’s eligibility, a conversation with your broker is the best place to start to learn how distance-based discounts might apply.
How to Submit an Odometer Reading
To ensure your discount applies, you need to provide proof of your vehicle’s odometer reading at two points:
- At the start of your policy term
- At the time of renewal, one year later
The reading must be documented and date-stamped no earlier than seven days before and no later than seven days after the date your new policy takes effect. This is critical: if your documentation falls outside this window, your submission may be rejected.
Accepted forms of proof include:
- A clear photo of your odometer
- A receipt or work order from a mechanic or dealership
- A diagnostic report from a vehicle information app
- A Transfer/Tax Form (APV9T) with an actual odometer reading (not estimated)
- A New Vehicle Information Statement (NVIS)
You can submit your reading online using your BC Services Card or online banking credentials. If that’s not available to you, your Autoplan broker can help you submit the documents manually.
Submitting After Your Policy Starts
Didn’t submit a reading during your policy renewal? You’re not out of luck. You can still qualify for distance-based discounts as long as your documentation meets the date requirements.
You can still submit an odometer reading at any point during your policy term, as long as the date on your documentation meets the required range. If your submission is accepted mid-policy, you’ll receive a pro-rated refund based on how much time is left in your term.
Refunds may come as:
- A direct deposit (if you’re enrolled)
- A mailed cheque (if not enrolled)
- A credit toward future payments (if you’re on a monthly plan)
What Happens After You Submit?
After you submit your odometer reading and supporting documents, ICBC will review your file:
- If approved, you’ll get an email confirming the discount and refund method
- If denied, ICBC will contact you within about seven business days to explain why
Your odometer reading will be stored and used for next year’s renewal assessment.
Final Word: Let Us Help You Save
If you don’t drive much, there’s no reason to pay the same premiums as someone clocking 30,000 kilometers a year. But these usage based insurance discounts aren’t automatic. You have to submit the right documents at the right time—and that’s where we come in.
At King Insurance, our brokers are here to help you navigate the process, gather the required documents, and make sure you don’t miss out on the optional distance-based discounts you deserve. For drivers renewing policies, switching vehicles, or submitting a reading mid-term, we’re happy to walk you through every step.
Call or visit us to learn more—or contact us online if you’d prefer to start from home.
You drive less. Let’s make sure you pay less too. Want to find even more ways to cut costs? Check out our blog on other ICBC-approved strategies to lower your auto insurance premiums.
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.