Automotive

ICBC insurance question: accelerated depreciation

  • Last Updated:
  • May 9th, 2019 1:14 pm
[OP]
Jr. Member
Oct 11, 2017
120 posts
88 upvotes
Vancouver

ICBC insurance question: accelerated depreciation

have an Mercedes 2015 ML350
got in an accident, I hit the other party and the other party ran away (illegal u-turn)
ICBC is still determining whos fault (even after 3 weeks)
however, they are fixing my car and est. 26k from the body shop (approved by icbc)

in that case, even if my car is fixed after a few months, i would have accelerated depreciation on my car and 26k damage recorded on my car
what should I do in this case? any suggestion?
thank you
3 replies
Deal Expert
User avatar
Jul 30, 2007
28570 posts
13966 upvotes
Toronto
If you trade in your car after repair is completed, you will likely see a 20-25% hit vs a clean car in your trim model easily.
Sr. Member
Feb 25, 2004
512 posts
199 upvotes
this is called diminished value, it a legal concept generally accepted in the USA but rarely here in Canada although I beleive there have been a couple of cases that addressed this via trial.
if you want you have the ability to sue the other party in tort to recoup your losses, your insurer is not responsible for this as you haven't experienced an actual loss, rather it's just an anticipated loss when you go to sell the vehicle.

Your best avenue is small claims court, you will have more success there than in superior court as the claim is limited to $25,000 max and generrally tends to be more plaintiff friendly

best of luck and if you need advice please seek counsel
Member
Dec 11, 2012
250 posts
110 upvotes
Coquitlam, BC
I heard sometimes you can push for ICBC to write-off your car depending on the current value (based on the mileage, condition) of your car, argue with them that my car is worth around $25-30K (my guesstimate) and I believe they have a formula that if the cost of repair is more moren 60-70% of the value of the car, then the car will be a write-off.

My parents had a major accident with their leased BMW X1 few years ago which the side airbags got deployed and whoever saw the car said it will be a write-off (repair estimate was around $16K and the final cost was around $22K). ICBC basically asked them do you want to write-off the car or not and of course they said no as they'd be left with negative equity on the lease.

Also keep in mind that $26K is just an estimate value, the final repair cost for sure will be more than $30K!

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