If your vehicle is a writeoff

ICBC determines if a vehicle is a writeoff, or total loss, by assessing the cost of repair compared to the vehicle's actual cash value (ACV) and its salvage value. It may make more sense to pay you to purchase another vehicle rather than repair your damaged one.

Vehicles that are written off are disposed of properly as salvage, and the registered owner or lien-holder is issued a cheque for its actual cash value. Car owners have the option of an appeal process if they disagree with the total loss settlement amount.

Here is the process you can expect to go through for a writeoff:

1. Determining a writeoff

If your vehicle has been damaged, an estimator determines whether your vehicle should be repaired or declared a writeoff.

Here's an example:

• The cost of repairing a vehicle is $8,000.
• The ACV of the vehicle is $10,000.
• The estimated salvage value is $3,000.

This vehicle would be declared a writeoff: It would cost more to fix it ($8,000) than to pay its owner the ACV ($10,000) and recover some of the costs by selling it as salvage ($3,000).

Deductible may apply

Please note that even if your claim results in a writeoff, you may still need to pay a collision deductible. If you are not at fault, this deductible may be reimbursed or waived.

2. Signing the salvage release form for a writeoff

You are asked to sign a salvage release form, which transfers your vehicle from your name(s) into ICBC's name. The vehicle is then disposed of properly.

• This procedure supplies the majority of recycled parts used by the automobile repair industry in B.C.
• The proceeds from salvage sales helps reduce the cost of auto insurance for B.C. motorists.

3. Considering your vehicle settlement offer

Just as we research your vehicle’s value, we encourage you to do the same by checking ads for similar vehicles in the used vehicle market. A good place to start is the Buy & Sell and AutoTrader B.C. 

Note that asking and selling prices can vary widely, based on mileage, vehicle options and condition.

You may want to discuss your findings with your ICBC estimator.

How we determine the actual cash value

To determine the actual cash value, we do a full inspection of your vehicle, taking into consideration

• the year, make and model
• factory options
• after-market equipment
• mileage
• condition of exterior, interior, mechanical and tires
• receipts for recent after-market equipment or upgrades, and
• reviews of vehicle sale publications and internet sources.

4. Accepting and receiving your settlement

• We let you know the actual cash value calculated for your vehicle.
• A cheque in that amount is made out to you and any lien-holder (that is, anyone with a financial interest in the vehicle, such as a bank, lease company or repair shop).
• ICBC may pay the applicable taxes. An allowance for taxes is paid as part of the settlement. This allowance will be reduced according to the insured's ability to claim input tax credits.

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  (PDF).

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.