Bringing vehicle repair costs down

The number of crashes in our province are increasing every year, and with that, the number of vehicle damage claims.

The rising cost of vehicle repairs has impacted the amount ICBC pays in claims – and contributing to the rising cost of insurance in B.C.

Why we need changes to repair costs

More vehicle damage claims are being reported to ICBC than ever before – 251,300 in 2017 alone, 42,000 more than just three years before, which is an increase of 20%.

ICBC spends approximately $1.5 billion on goods and services each year. More than half of these costs are for repairing vehicles.

There are approximately 620 ICBC-accredited collision repair shops and 500 glass repair shops across the province. Our payments to these suppliers to cover repairs for customers have grown dramatically over the years and some policies are outdated.

Changes to glass replacements for suppliers

Payments for glass repair and replacements have increased by 140 per cent over the last decade, from approximately $40 million in 2008 to $96 million in 2017, fueled by an increase in both the number of claims being made and the average cost of those claims.

On June 4, we made changes to the way we reimburse glass suppliers for windshield replacements and moulding to help reduce costs and better align with industry standards. Customers should see no impacts from these changes. The changes will reduce how much glass suppliers are able to mark-up windshields to bring them more in line with industry standards.

Working with industry

We’re committed to working with industry and their associations. This includes modernizing our supplier programs to ensure that customers continue to receive the highest standards of vehicle repairs at the best market value.

To this end, we have established two Industry Advisory Committees - one for collision repair and one for glass - to provide input on new tiering models. Both committees have broad representation from across their respective sectors and across the province.

Modernizing our collision repair and glass supplier programs will ensure they reflect advances within the industry and recognize shops that invest in technician training, certification programs, advanced repair equipment and value-added customer service.