Policy on equipment upgrades or substitutions on ICBC glass only claims.
Definition of depreciation, the items depreciation applies to, and considerations to component condition.
Depreciation relates to the wear and tear of vehicle parts based on the average life expectancy of that part as determined by the manufacturer. The difference between the cost of a replacement part and the remaining value in the damaged part is referred to as depreciation.
If the total depreciation dollar amount on a claim is ... | Then ... |
---|---|
less than $100, before taxes | depreciation does not apply. |
more than $100, before taxes | the customer is responsible for the full amount. |
When replacing an Original Equipment Manufacturer (OEM) part with an aftermarket or re-manufactured part, if a lower priced part of similar kind and quality is used, common sense and good judgement can apply to determining depreciation, matching the depreciated cost of the OEM part, if necessary. This includes vinyl and convertible tops.
If the identical make and model of electronic equipment is available, no depreciation is applied.
Vehicle component | Betterment | Percentage of depreciation |
---|---|---|
Interior electrical components (excluding stereos) | No depreciation | N/A |
Aftermarket sound and communication equipment | 0-23 months | 0% |
2-6 years | 10% per year | |
6+ years | 80% maximum | |
Batteries | 0-23 months | 0% |
2-6 years | 20% per year | |
6+ years | 90% maximum | |
Major mechanical components, including
|
0-100,000 kms | N/A |
100,001-150,000 kms | 10% | |
150,001-200,000 kms | 20% | |
200,001-250,000 kms | 30% | |
250,001-300,000 kms | 40% | |
300,001 kms and over | 10% for each additional 50,000 km to a maximum of 80% | |
Other mechanical components, including
|
0-100,000 kms | 0% |
100,001-200,000 kms | 5% | |
200,001-300,000 kms | 10% | |
300,001-400,000 kms | 15% | |
400,001 kms and over | 5% for each additional 100,000 kms up to a 50% | |
Suspension components, including
|
0-80,000 kms | N/A |
80,001-100,000 kms | 10% | |
100,001-125.000 kms | 20% | |
125,001-150,000 kms | 30% | |
150,001-175,000 kms | 40% | |
175,001-200,000 kms | 50% | |
200,001 kms and over | 60% | |
Vinyl and convertible tops | 0-4 years | 0% |
5-8 years | 25% | |
8-12 years | 50% | |
12+ years | To a maximum of 80% | |
Complete repaints | Estimator discretion, based on condition. Note: Depreciation on complete paint jobs includes the cost of paint and labour operations, such as the remove and re-installation of parts required during the painting process.
|
Up to a maximum of 80% |
Tires | Measured remaining tread on tire being replaced | Pro rate according to original tread depth |