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How many vehicles does ICBC write off each year?

In B.C., an average of 150 vehicles go to ICBC’s salvage yards every day — a total of 46,000 in 2006.

When Your Vehicle Is a Total Loss brochure (PDF)

Important reminders:

If needed, ICBC can arrange to remove your personal belongings, insurance documents and licence plates from your vehicle.
If you have a leased vehicle, contact your leasing company to advise them it's a total loss. ICBC will deal directly with the leasing company on the total loss settlement.
Your current Autoplan Collision, Comprehensive, Roadstar or RoadsidePlus coverage can be transferred to a substitute rental vehicle.
Once a total loss settlement has been presented to you, and your rental vehicle has been returned, see your Autoplan broker to transfer or cancel your insurance coverage, including your payment plan.

What is a "total loss"?

When you make a claim under your Autoplan Collision or Comprehensive insurance, an estimator must decide whether your vehicle should be repaired or declared a write off.

To do this, the estimator considers the following:

the cost of repairing your vehicle
the actual cash value of your vehicle
the salvage value of your vehicle

If it's not economical to repair your vehicle, ICBC considers the vehicle to be a write off. In insurance terms, this is called a “total loss.” We pay you the actual cash value of your vehicle, and recover some of the costs by selling the vehicle as salvage.

It’s a decision we make based on dollars and cents and it helps us control your Autoplan premiums.

Please note that all claims may be subject to a deductible.

Example

After a crash:

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

In this example, ICBC would consider your vehicle a write off. This is because it would cost more to fix your vehicle ($8,000) than to pay you the actual cash value ($10,000) and recover some of the costs by selling it as salvage ($3,000).

What happens to my vehicle if it’s total loss?

You will be asked to sign a salvage release form which transfers your vehicle from your name(s) into ICBC's name. This allows ICBC to sell the vehicle through a salvage auction.

This process 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.

How do I receive my settlement?

A representative from ICBC will contact the vehicle owner to present the actual cash value which has been calculated for your vehicle. A cheque in that amount will be made out to the registered vehicle owner and any lienholder (that is, anyone with a financial interest in the vehicle, such as a bank, lease company or repair shop).

ICBC pays 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.

How can I determine the value of my vehicle?

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.

Check out the following independent B.C. classified ads to start:

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

Looking to find a replacement vehicle? Check out our Buying & Selling a Car section for information that will help make your experience easier.

If you're buying a used vehicle, make sure you've got the facts by getting an ICBC Vehicle Claims History Report.

What if I don’t agree with the settlement?

If your claim is covered by Autoplan Collision or Comprehensive insurance and you are unable to reach an agreement with your ICBC representative, you can request a review by a manager. If the manager is unable to settle the matter, he or she will advise you on the course of action you can take.

How can I protect my new car investment against a total loss?

Newer vehicles can depreciate quickly. And sticker prices on new cars are always going up with inflation. If your car is a write off or stolen and unrecovered, your insurance policy will typically pay you based on the current market value of the vehicle. If you borrowed money to buy it, your payout for a total loss might be less than you owe on your loan.

The good news is that coverage is available to protect you from losses due to inflation and depreciation of your new or newer vehicle. Ask your Autoplan broker for details.

Declared Value

Some people who own specialized vehicles, such as motorcycles or trailers, insure them for amounts they specify. You should review the declared value of your vehicle at least once a year to ensure that it reflects market value, including applicable taxes, and takes into account depreciation. Speak to your Autoplan broker for more information.