Automotive

How does ICBC determine salvage value

  • Last Updated:
  • Jul 26th, 2019 4:31 am
[OP]
Newbie
Jun 5, 2018
6 posts
1 upvote

How does ICBC determine salvage value

I was in an accident (no fault) and the initial repair estimate came in at $24K (17K parts, rest for labour, supposedly no structural damage). Air bag deployed and I also have a some injuries in my hand and neck. The car value is around 90K. I am asking ICBC to write off the car but they are saying the salvage value of this car is only $25K which seems ridiculous. They say salvage value is usually around 15% of the value of the car and they are just being generous with my car (lol). Any advice please?
4 replies
Deal Addict
Apr 6, 2008
1793 posts
1119 upvotes
I'm in Ontario, but I'm going to assume it's the same. The insurance company has final say it what happens to your vehicle (fix or write off) as it is their obligation to make it the same as pre-accident. At the end of the day, they are only going to pay out what is legally required and if it only needs 26% of the cars value to repair, they will take that route. A certain threshold has to be met to write it off, which I believe is around 70%?

To them, it's just a piece of metal and they don't care about the future loss of value due to the accident claim. You could theoretically try suing them for it but I doubt you would be successful.
Member
Apr 27, 2009
232 posts
73 upvotes
West Vancouver
Why are you concerned about salvage value? The insurance company uses "fair market value" of the car and repair cost as the main factors in determining to write the car off.
[OP]
Newbie
Jun 5, 2018
6 posts
1 upvote
Randy6560 wrote:
Jul 26th, 2019 12:14 am
Why are you concerned about salvage value? The insurance company uses "fair market value" of the car and repair cost as the main factors in determining to write the car off.
That's not what ICBC said. They said they use the salvage value of the car plus the repair costs to come up with a calculation to figure out if they should write off the car or not. They are not telling me what that calculation is. Looking at other posts on here it seems like the calculation is if the salvage value and repair costs total up to 80% of the fair market value or more they write it off.
Deal Addict
Sep 8, 2017
2472 posts
2495 upvotes
Vancouver
Why do you want them to write it off?

I was in the opposite situation. I wanted insurance to repair my car, but instead they wrote it off. I took good care of it and it was in excellent condition prior to the accident. Whatever money they gave me wouldn't have replaced it. Despite a month of drawn-out negotiating and arguing, they still had their way. I felt quite powerless by the end of it. Insurance will do whatever costs them less.

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