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 Actual Cash Value and salvage value. This means that based on the costs involved, 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 lienholder is issued a cheque for the Actual Cash Value of the car. 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 must determine if your vehicle should be repaired or declared a writeoff. This happens when the cost of repairing exceeds what we call the Actual Cash Value (ACV) of your vehicle. Here is an example:

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

Your vehicle would be a writeoff in this example. It would cost more to fix your vehicle ($8,000) than to pay you the ACV ($10,000) and recover some of the costs by selling it as salvage ($3,000). 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

Did you know...

You will be 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 help reduce the cost of auto insurance for B.C. motorists.

3. Considering your vehicle settlement offer

Just as ICBC researches your vehicle’s value, we encourage you to do the same. You can do this by comparing your vehicle with similar vehicles in local classified ads. You may want to discuss your findings with your ICBC estimator.

How the Actual Cash Value (ACV) is determined

To determine the actual cash value (ACV), ICBC does a comprehensive inspection of your vehicle, taking into consideration the following:

• 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
• Reviews of vehicle sale publications and internet sources

Please note that asking and selling prices can vary widely based on mileage, vehicle options and condition. Check out Buy & Sell and AutoTrader B.C. classified ads to start.

4. Accepting and receiving your settlement

• A representative from ICBC will contact you to present the Actual Cash Value (ACV) that has been calculated for your vehicle.
• A cheque in that amount will be 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 in total loss settlements. If you are owed GST on your settlement, you will be given a GST voucher. You can use this voucher to reduce the GST payable on a replacement vehicle when purchased or leased through a licensed motor dealer.

What if you do not agree with the total loss settlement

If you are unable to reach an agreement with your ICBC representative on your total loss settlement, you can request a review by a manager. If this review does not settle the matter, the manager will advise you of your settlement options.