Getting into a car accident is stressful enough, but when your vehicle is totaled, the process of dealing with car insurance, loans, and replacement vehicles can feel overwhelming. If you’re in a situation where ICBC has sent you a check after your car was declared a total loss, you’re probably wondering: What now?
Whether you’re new to British Columbia or just unfamiliar with the claims process, it’s important to understand the steps you need to take to properly manage your insurance coverage and get back on the road with confidence. Here’s a clear, step-by-step guide to what you should do next.
Step 1: Understanding the ICBC Payout and Your Insurance Policy
When your vehicle is totaled, ICBC will issue a payout based on the fair market value of your car at the time of the accident, minus your deductible. If you still owe money on your car loan, the payout will be made out to both you and your lender, as they have a financial interest in the car.
What do you do with the check? Take the check to your lender (the insurance company or financial institution that holds your car loan) to pay off the remaining balance. The lender will use the car insurance payout to clear your loan. If the payout exceeds your loan balance, they will return any remaining funds to you. If you owe more than the payout amount, you’ll be responsible for paying the difference.
It’s important to remember that this payout doesn’t go directly to you if you have an outstanding loan. You need to work with your lender to ensure the loan is settled. For more details, please check the ICBC Claims Process page. Certain conditions may apply depending on your lender’s requirements.
Step 2: Cancelling Your Old Car’s Auto Insurance
Once the loan is cleared, you’ll need to cancel the auto insurance on your totaled vehicle. You don’t want to continue paying for insurance coverage on a car you no longer own, so this is an important next step.
- Visit an Autoplan Broker: Head to an Autoplan broker to handle your auto insurance policy in BC. Bring your vehicle’s plates with you. The broker will help you cancel the auto insurance on your old vehicle and ensure that all exclusions apply properly under ICBC guidelines.
- What should you bring?
Be sure to bring your vehicle plates to the broker. You may also need proof that the loan has been cleared, which could come in the form of documents from your lender. Once your auto insurance is canceled, you won’t be charged for your old vehicle anymore, and you can start saving toward your next plan to insure your replacement car.
Step 3: Getting New Plates and Exploring Insurance Options for Your New Car
Once your old vehicle’s policy is canceled, you’re ready to purchase a new car. This is where you’ll need to get new plates and car insurance for your new vehicle.
- New Plates: When you buy a new vehicle, you’ll need to visit an Autoplan broker to obtain new plates. Whether you buy a car from a dealership or a private seller, your Autoplan broker will guide you through the registration process and issue you the necessary plates.
- New Insurance Policy: You’ll also need to purchase a new insurance policy for your new car. This ensures your vehicle is legally covered and financially protected in the event of an accident or hit and run driver. Your Autoplan broker will walk you through your coverage options, such as basic insurance, collision coverage, and comprehensive coverage.
If your new car is financed, your lender may require specific types of auto insurance coverage, such as comprehensive or collision insurance, to protect their investment. Make sure your new policy meets these requirements to avoid unnecessary financial strain later on. Remember that your premium may vary based on factors like your driving record, location, and the value of your new car.
Step 4: Understanding Your New Insurance Coverage and Additional Coverage Choices
Once you have your new car and auto insurance policy, it’s important to fully understand your coverage. ICBC offers a variety of coverage options, and understanding the details will help you make informed decisions and find the solutions that fit your needs.
- Basic Insurance: This is the minimum required by law in BC and includes third-party liability, accident benefits, and uninsured motorist protection. It covers damages to others if you’re at fault in an accident and can help with certain repairs and replacement costs, depending on the situation.
- Optional Coverage: Depending on your needs and the value of your new vehicle, you may want additional coverage such as collision or comprehensive coverage. Collision covers damages from an accident, regardless of fault, while comprehensive protects against incidents that aren’t accident-related (like theft, vandalism, or storm damage). Your broker can explain any limitations within these policies to help ensure you’re not caught off guard when repairs or claims are needed.
- Deductibles: This is the amount you’ll pay out of pocket before your insurance coverage kicks in. Choosing a higher deductible usually means lower monthly premiums, but it also means paying more upfront if you need to file a claim or arrange for repairs. We can help you compare options and find the right solutions for your budget and protection level.
If you have home insurance, life, or health coverage with King Insurance, talk to your broker about combining your plans for potential savings. Clients who are already a client with other insurance products may qualify for discounts and simplified renewals. Each plan is customized, and certain conditions or exclusions apply depending on the policy.
Step 5: Getting Back on the Road with the Right Insurance Products for New Drivers
Once you’ve received your new car insurance policy and plates, you’re ready to get back on the road with your new vehicle. The process may feel overwhelming at first, but once everything is settled, you’ll be back to driving with confidence.
Remember that your new premiums may differ from your previous car insurance, especially if your new car has a higher value or different safety features. Be sure to review your policy regularly to ensure it meets your needs and that you’re getting the right coverage for your family and lifestyle.
If you’ve experienced a total loss, accident, or hit and run driver incident, your broker can also help you explore insurance products that provide added protection for final expenses, life coverage, or vehicle replacement costs. Ask your broker to help you insure what matters most—your vehicle, your family, and your peace of mind.
Key Takeaways
Dealing with a total loss doesn’t have to be complicated. Here’s a quick recap of what you need to do:
- Insurance Payout: If you still owe money on your car, the insurance payout will be issued to both you and your lender. Pay off the loan first, and any remaining funds will be returned to you.
- Cancel Your Old Insurance: Visit an Autoplan broker with your vehicle plates to cancel the insurance on your totaled car.
- Get New Plates and Insurance: Once you have a new car, visit an Autoplan broker to obtain new plates and purchase a new insurance policy.
- Understand Your Coverage: Be sure to understand your new insurance policy, including the coverage types, deductibles, and claims process.
While having your car totaled can be stressful, understanding the steps you need to take will help you navigate the process smoothly. If you have any questions or need help with your insurance, don’t hesitate to reach out to your local Autoplan broker or King Insurance for personalized assistance.
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 in Canada, helping people and businesses 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—especially those who are already a client—while making sure they understand their coverage options clearly and avoid unnecessary financial strain in the future. Whether you’re looking to insure your vehicle, home, life, or health, King Insurance is here to help your family build a lasting plan for protection and savings.