If your vehicle is a write-off
vehicle damage arbitration
Sometimes it costs more to repair a vehicle than the vehicle is worth. When this happens, we usually have to write it off as a total loss and pay the owner an amount to replace the vehicle, based on its actual cash value.
How a vehicle is written off
After you make a claim under your Collision, Comprehensive or Specified Perils coverage, an estimator carefully examines your vehicle to determine whether it should be repaired.
When making this decision, we
- estimate your vehicle’s repair cost, then
- calculate the amount ICBC would pay you for a total loss settlement—what it would cost to replace it (its actual cash value) less whatever amount we could recoup by selling the vehicle as salvage.
A vehicle is written off when (1) repairing it would cost more than (2) offering the owner a cash settlement and recovering some of our costs through salvage.
Example: calculating a total loss
This vehicle would be written off because it would cost more to repair than it’s worth:
| Cost of repairing vehicle | vs. | Cost of writing off the vehicle | ||
|
Estimated cost of repairs |
$8,500 |
Cost of replacing the vehicle (its actual cash value, plus applicable taxes) |
$11,200 |
|
|
|
|
Less the vehicle’s value if sold as salvage (after taxes) |
($3,000) |
|
|
total cost |
$8,500 |
total cost |
$8,200 |
|
How we determine a vehicle’s value
To calculate a vehicle’s actual cash value, we do a complete inspection, considering:
- year, make and model
- factory options
- after-market equipment
- odometer reading
- mechanical, tire, exterior and interior condition
- receipts for recent maintenance or major repairs
We also consider similar models offered for sale privately and through dealers.
Your deductible
If your vehicle is written off, you may still need to pay the deductible that applies under your Collision, Comprehensive or Specified Perils coverage.
If you’re not at fault, the deductible may be reimbursed or waived.
Not satisfied with your settlement?
You can have your total-loss settlement reviewed by a claims manager.
If this doesn’t resolve the matter, you may be eligible for vehicle-damage arbitration.
Under this process, you and ICBC apply to the British Columbia Arbitration & Mediation Institute. An independent arbitrator will be appointed.
Note: Arbitration doesn’t address fault, or ICBC's liability to pay a claim.