ICBC introduces new 'distance-based discount' for drivers

New ICBC discount announced Drivers in B.C. who travel fewer than 10,000 kilometres per year may be eligible for a new, distance-based discount on insurance.

British Columbians who drive fewer than 10,000 kilometres a year are now eligible for a break on their insurance, according to ICBC.

The new distance-based discount will save qualifying drivers between 10 and 15 per cent on their optional coverage under policies purchased or renewed after June 1.

"The less you drive, the greater the discount," ICBC's website says.

Policyholders have to submit one odometer reading when they purchase or renew a policy, as well as another the following year. Motorcycles, collector vehicles and RVs don’t qualify.

The discount is different from the insurer's low kilometre discount, which gives drivers who put on fewer than 5,000 kilometers a break on their basic insurance.

ICBC says the new discount is part of an effort to introduce more options for insurance that are based on driver behaviours and vehicle use.

"As usage-based insurance evolves within ICBC, we will look to introduce more options and expand current programs to allow more British Columbians to qualify. For this reason, it is important to submit your odometer reading when you purchase or renew your annual policy, no matter how far you think you may drive in a year," the website says, later estimating that 40 per cent of customers are expected to be eligible for the available usage-based discounts.