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In BC, what should I know about insurance requirements for car loans?
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In BC, what should I know about insurance requirements for car loans?

In British Columbia, securing a car loan necessitates understanding the dual layers of auto insurance. Firstly, the provincial government mandates basic auto insurance, known as Basic Autoplan, provided exclusively by ICBC (Insurance Corporation of British Columbia). This fundamental coverage includes third-party liability and accident benefits, which are legally required for all registered vehicles. Secondly, and critically for financed vehicles, lenders will invariably require additional, private insurance coverage: specifically comprehensive and collision. This is because the vehicle serves as collateral for your loan, and the lender needs to protect their financial interest against damages, theft, or total loss. Without comprehensive and collision coverage, if the vehicle is significantly damaged or stolen, you would still be obligated to repay the full loan amount even if the car is no longer usable, potentially leaving you in a severe financial predicament. As we approach 2025, with increasing vehicle repair costs and values, lenders are particularly vigilant about ensuring adequate coverage is in place, often requiring proof of these policies before loan disbursement. This ensures both the lender's asset and your financial well-being are safeguarded throughout the loan term.

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