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