Lessors and related stakeholders

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

This May, Orders in Council have now been introduced by the Government of British Columbia, bringing the supporting regulatory and statutory changes into force for insurance policies effective on or after January 6, 2025 with early renewals up to 45 days prior (November 22, 2024).

What's changing for leased vehicles

For policies with an effective date of January 6, 2025 or later, 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

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

Among other challenges, the current system prevents lessees from using ICBC’s online insurance services and can limit their choice of insurance brokers.

Once the amendments come into effect, lessees will be able to purchase, change and renew the vehicle licence and insurance for their leased vehicles, through brokers or our online insurance services.

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.

We know many leasing companies are already thinking about what they can do to prepare for the changes. We’re thinking about your needs as well and making sure you have sufficient time and information to transition to the new model.

We are hosting information webinars this summer and invite you to register. We also encourage you to start thinking about the updates you may need to make to lessee and broker agreements, insurance coverage and reporting requirements.

If you have any questions or would like specific information shared at the upcoming sessions, please let us know at [email protected].

Register for an upcoming webinar.

Contact us

We’re committed to supporting you and will be holding information sessions about these changes in Summer 2024.

We’ll share more details soon. In the interim, please email [email protected] if you have any questions.