Lessors

Lessors and related stakeholders

British Columbia is making changes to make it easier for lessors and lessees to complete licence and insurance transactions on leased vehicles.

For insurance policies effective on or after January 6, 2025 (with early renewals starting on November 22, 2024), we've made some changes to the leased vehicle framework.

What's changing for leased vehicles

Lessees will be able to:

  • Conduct the majority of their insurance transactions without authorization from lessors

  • Renew the eligible policies for their leased vehicles online

  • Receive refund/rebate cheques without authorization or endorsement from lessors

  • Choose any broker to process renewals or changes to their insurance policies

Prior to the changes in B.C., lessees would typically arrange and pay for the vehicle licence and insurance for their leased vehicles; however, lessors would need to provide written authorization to allow these lessees to conduct these transactions on their behalf.

Among other challenges, before the changes, lessees could not renew their insurance online and were limited in their choice of insurance brokers.

With the amendments in effect, lessees are able to purchase, change, renew and even cancel the vehicle licence and insurance for their leased vehicles.

Lessees, rather than lessors, will be the vehicle licence holders and the insurance policyholders, reducing administrative burdens for both parties. Lessors will still be an insured under the policy and will still be protected in the same way they are today. Lessors will also continue to be the registered owner of the leased vehicles, and vehicles cannot be sold or transferred, except by their lessors.

Contact us

We’re committed to supporting you and answering any questions you may have.

Please email us at [email protected] and we’ll get back to you as soon as possible.