When it comes to car insurance in Vancouver, BC, ICBC’s income replacement policy might leave you with questions—especially if you’re self-employed or a high earner. Here’s the deal with ICBC Canada’s 90% income replacement policy and why some people are opting for a bit more coverage.

The 90% Replacement Reality of Auto Insurance in Vancouver

ICBC Canada promises up to 90% income replacement if you’re out of work due to an accident. Sounds good, right? But here’s the catch: ICBC assumes you’re not spending as much if you’re not working (no commuting, no work lunches, no extra wardrobe expenses). That’s why they say 90% is enough. However, you still need to pay for ongoing bills and, for some, the essential costs of running a business, including local-area companies.

Why High Earners and the Self-Employed Should Take Note of Car Insurance

If you’re a self-employed worker, ICBC’s calculations can complicate things. The 90% they calculate is based on last year’s net taxable income—after deducting any business-related expenses. For someone who’s self-employed, that can mean significantly less income replacement than expected. And if you’re still covering business expenses (like insurance or a company car), that 90% might feel more like a whole lot less. Self-employed drivers need to be aware of how their driving record can impact their insurance rates.

It is essential to purchase auto insurance not only to comply with legal standards but also to protect yourself and your family financially.

High earners, especially those making over $113,000, should also consider this: ICBC caps standard income replacement at that level. A high-income earner’s driving record can affect their eligibility for certain coverage options. So if you’re a high-income earner without employer-provided income coverage, you might be in for a surprise.

What’s the Income Top-Up Coverage Option?

ICBC’s Income Top-Up option steps in to fill the gap for those earning over $113,000 per year, and it can be particularly beneficial for those needing various types of insurance coverage, including vehicle insurance. This additional coverage can also help cover any liability that may arise from higher income levels. It’s optional coverage you can add on in tiers of $10,000, up to a max of $100,000, raising your income replacement ceiling. This means that if you’re injured in an accident, the extra coverage can help get your replacement income closer to what you’d actually earn. Top-Up is designed for everyone, so you’re not left financially stretched while you recover.

Is Income Top-Up Worth It for Drivers?

For many high-income earners in Vancouver, opting for this additional coverage can help protect their income and business, providing peace of mind. While auto insurance in Vancouver comes with costs, the price of not being fully covered after an accident could be higher. Self-employed? The Top-Up could be the difference between keeping your business running smoothly or facing some serious budget cuts.

Our dedicated team ensures that each person receives individual attention, focusing on their unique needs to enhance customer satisfaction and loyalty.

A Few Takeaways on ICBC Canada’s Car Insurance Income Replacement Policy

ICBC’s Enhanced Care system is intended to provide fair coverage, but it might not be the perfect fit for everyone—especially if you’re self-employed or on the higher end of the income scale. If that’s you, it’s worth discussing ICBC insurance renewal options with your Autoplan broker. Clients can easily request a quote for additional coverage to ensure they have the protection they need. And remember, for income over $113,000, Top-Up could make a big difference in what you bring home if you can’t work.

For homeowners, liability coverage is crucial to protect against potential risks, especially in areas with challenging security considerations.

If you’re considering boosting your income protection or have questions about car insurance in Vancouver, our team at King Insurance Services is here to help. Purchasing adequate coverage is essential to meet your individual needs and protect your family. Reach out to us anytime at ICBC@kinginsurance.ca or fill out our quick contact form at King Insurance Services. We’re here to make sure you have the coverage that works best for your needs! Our website can assist you in accessing necessary information and support.