If you’re driving with an “N” on your vehicle, you may be wondering: Am I paying more for insurance just because I have a Class 7 licence and not a Class 5? The short answer is no. What matters to ICBC isn’t the class of licence you hold, but how much driving experience you have and how safely you’ve driven.
Here’s what you need to know about how ICBC calculates premiums for N drivers—and why long-time Class 7 drivers shouldn’t worry.
You’re Not Penalized for Being Class 7
One of the biggest misconceptions we hear is that Class 7 drivers automatically pay more for insurance. But ICBC doesn’t use your licence class to set your rate.
Instead, your premium is based on risk factors such as:
- How many years you’ve been driving
- Whether you’ve had any at-fault crashes
- Where you live
- How you use your car
- Who else drives your vehicles
- What kind of vehicle you drive
That means a driver who’s had their Class 7 for 20 years with a clean record will pay the same as someone with a Class 5 and the same level of experience. From ICBC’s perspective, a veteran driver is a veteran driver, regardless of the letter on your licence.
ICBC even spells this out on their website: “Safe driving and lots of experience can help to lower your premiums.” In fact, you earn better Basic insurance discounts with each year of experience, up to a maximum of 40 years.
But New N Drivers Will Pay More
If you’re a novice driver and just earned your N, you’ll likely pay more. That’s because you’re still considered high-risk due to your lack of experience and developing driving skills, not because you’re holding a Class 7 licence.
New drivers don’t yet qualify for significant experience-based discounts, and because crash statistics show that novice drivers are more likely to get into accidents, their premiums reflect that added risk. This is common during the novice stage of the Graduated Licensing Program.
It’s also a time when you’ll start to gain confidence behind the wheel, learning how to navigate your ride in different traffic and weather conditions.
No Formula for New Drivers, But Driving Experience Brings Down Costs
There’s no one-size-fits-all formula for how much you’ll pay. However, a brand-new N driver in an urban area with no listed experience could see annual premiums of $3,000 to $5,000, depending on the coverage and vehicle. That number goes down steadily over time as you gain experience and maintain a clean driving record. Consistent practice and development of driving skills during the novice stage are key factors in reducing insurance premiums for new drivers.
A Veteran N Driver Pays the Same as a Veteran with a Class 5 Full License
Let’s say you’ve had your N for 15 or 20 years. You’ve driven responsibly, avoided crashes, and never felt the need to upgrade to a Class 5 full licence. Are you paying more because you never took the second road test?
Not at all. ICBC doesn’t penalize you for holding a Class 7 long-term. Your premium is calculated based on how many years you’ve been on the road and whether you’ve demonstrated safe driving over time. If you’ve got the same experience and crash history as someone with a Class 5, your insurance rates will be virtually identical. Whether you’re a Class 7 or fully licensed driver, ICBC treats experienced drivers equally.
Graduated Licensing Program Update: Should You Upgrade to a Class 5 Driver’s Licence?
From an insurance standpoint, there’s no rush to upgrade. ICBC doesn’t charge less for a Class 5 driver with the same experience as a Class 7.
However, there may soon be a new reason to wait. Graduated licensing and the road test requirement might be going away.
The Government of B.C. has introduced legislation to modernize the Graduated Licensing Program (GLP). If passed, starting in early 2026, drivers with a Class 7 Novice licence and a clean record won’t have to take a second road test to get their Class 5. Instead, they’ll go through a 12-month restriction period, during which they must demonstrate safe driving practices.
This means that if you’re eligible and have a clean driving history, it may be worth waiting until 2026 before booking your Class 5 test. You could pass into the next stage of the Graduated Licensing Program without another road test.
New Immigrants and ICBC Rates
If you’re new to British Columbia, ICBC doesn’t assume you’re starting from scratch. But you’ll need to prove your driving experience to receive credit for your years of experience.
- You can be credited for up to 15 years of road experience from outside B.C., as long as you provide acceptable proof such as a driver abstract or an official letter from your previous licensing authority. When you apply to obtain a BC driver’s license, you will need to bring valid identification and meet specific requirements.
- Even with this experience credited, ICBC applies adjusted premiums for the first three years to reflect that new drivers in B.C. may need time to adjust to local roads, traffic laws, and conditions. This protects both new drivers and contributes to overall road safety.
- After that period, assuming a clean driving record, your premiums will match those of other experienced drivers in the province.
It’s important to submit documentation early. Ideally you should submit when exchanging your licence, so your experience is factored into your insurance rating right away. You can do this online or visit an ICBC office to complete the process in person.
Estimating Your Insurance: ICBC’s Tools
ICBC doesn’t provide a simple calculator or rule of thumb to estimate your insurance costs. There’s no quick equation that says “X years of driving = Y dollars.”
But they do offer two official tools that can help:
1. Insurance Estimator Tool
If your insurance renewal is coming up within 45 days, you can use this tool to:
- Enter your drivers and vehicle details
- See how different optional coverages affect your rate
- Get a personalized estimate of what you’ll pay
The estimator is free, secure, and accurate. It pulls directly from ICBC’s database using your current policy.
2. Driver Factor Report
Your “driver factor” is a score based on your experience and crash history. You can request this from ICBC to see how you’re being rated and what discounts you currently qualify for. It’s the same factor ICBC uses to calculate your portion of the premium.
Other Factors That Affect Your Rate
Even if you’ve been driving for decades, other factors can influence how much you pay:
- Location: Rates vary by region due to traffic, weather, and claims frequency.
- Vehicle type: Newer cars with expensive parts may cost more to insure.
- Usage: Business use and long commutes may increase premiums.
- Distance driven: If you drive safely and less than 5,000 km a year, you could qualify for a low-kilometre discount.
- Listed drivers: Their experience and crash history also affect your policy.
Need a Personalized Quote?
Still not sure how your N status affects your premium? Or whether your current policy gives you the best value?
At King Insurance, we help you cut through the confusion. Whether you’re a first-time N driver, a veteran with years of experience, or someone planning to upgrade your licence, we’ll explain your options and help you get the right coverage at the right price.
Contact us today for a free consultation or a personalized quote. We’ll help you drive safely—no matter what letter’s on your licence.
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.