If ICBC has declared your car a total loss after a crash, you may feel frustrated when their payout doesn’t seem to reflect your vehicle’s true value. A common concern we hear from clients at King Insurance is when ICBC offers a payout that’s significantly lower than what they believe their car is worth, especially if it had low mileage or had been well-maintained. So, what do you do in this situation? In this blog, we’ll explore how you can dispute ICBC’s valuation, provide the right evidence, and get a fair payout for your vehicle.

Understanding ICBC’s Total Loss Valuation Process and Market Value

When your car is written off by ICBC (Insurance Corporation of British Columbia) following an accident, they’ll determine the car’s Fair Market Value (FMV) at the time of the loss. The valuation is based on factors such as the age of the vehicle, its make and model, and the current condition.

However, the valuation is often less than what you might expect, especially if your car had low mileage or if you’ve invested in recent repairs or upgrades. For example, if you have a 2008 Nissan Versa with fewer than 100,000 km, ICBC may still offer a payout lower than what comparable vehicles are being listed for in the current market.

If you feel ICBC’s offer is too low, you have the right to dispute the valuation. Here’s how you can go about it.

Step 1: Review ICBC’s Valuation and Ask for Clarification on Insurance Coverage

When you receive your payout offer from ICBC, carefully review the details of the valuation. ICBC will often provide you with the listings or examples they used to determine the value of your vehicle. If their figures seem off, it’s essential to ask for clarification.

For example, if ICBC used listings from another province (like Ontario) instead of focusing on local listings in BC, this is a red flag. Your car’s value is determined by the local used car market, so it’s important that the valuation reflects that. The used car market can fluctuate rapidly, affecting vehicle valuations by ICBC. Ask your ICBC claims adjuster to explain the listings used and to provide more details about how the value was determined. Be sure to point out any hidden damage that may not have been considered.

Step 2: Provide Evidence with Comparable Listings for Vehicle Damage Arbitration

ICBC’s initial offer might feel like a lowball, but the good news is that you can provide your own evidence to challenge their valuation. A good place to start is by researching local listings for cars that are similar to yours. This includes factors like:

Make, model, and year: Find vehicles with the same make, model year and specifications.
Mileage: Look for comparable vehicles in terms of the number of kilometers driven. Market comparables should include ads for similar vehicles from platforms like Craigslist and Facebook Marketplace.
Condition: Maintenance and upgrade records can help demonstrate the true value of your vehicle during a dispute with ICBC. Your car’s condition, including any improvements or recent regular maintenance, should be considered when comparing to other cars. New tires or recent repairs can increase the vehicle’s value. You should document your vehicle’s pre-accident condition to strengthen your case for a higher payout.
Local listings: ICBC relies on local market data, so make sure to gather listings from the BC area specifically, including resources like Auto Trader

The more comprehensive your evidence, the better your chances of getting a higher payout. When you gather comparable listings, provide as much detail as possible. Include information like the asking price, the vehicle’s mileage, and any notable differences (or similarities) between your car and the one listed. Be sure to point out any upgrades or features your car has that may increase its value.

Step 3: Dispute the Valuation with Your Claims Representative

If you’re not satisfied with ICBC’s payout offer after reviewing the details and gathering evidence, the next step is to dispute the valuation with your claims representative. You can visit their website for more information on vehicle valuation disputes. ICBC has a formal process for reviewing disputes, and it’s crucial to follow the proper steps.

When you contact your claims representative, be polite but firm. Present the evidence you’ve gathered, explain why you believe the original offer is too low, and ask for a reassessment. Often, providing additional proof can result in a higher payout. In most cases, if you provide adequate evidence, the company will revise its initial offer. You can also escalate your dispute to an ICBC supervisor or manager if you are still unsatisfied after discussing with your claims representative.

Step 4: Escalate to a Supervisor or File a Formal Dispute for Vehicle Valuation

If your dispute is still unresolved after contacting your claims representative, the next step is to escalate the issue. You can request that a supervisor review the case. A supervisor may have more authority and flexibility to make adjustments to the valuation.

You can escalate your dispute to a manager if you are still not satisfied after the supervisor review. ICBC also has an official process for filing a formal vehicle valuation dispute. This involves submitting your evidence and explaining why the payout offer is unfair. While it’s not guaranteed that you’ll get the amount you’re hoping for, a formal dispute can often lead to a more reasonable settlement. Keep in mind the cost of additional professional help, but it might be worth the investment if it helps you get more money.

Step 5: Be Patient and Persistent

Disputing ICBC’s valuation can be a frustrating process, but persistence is key. It’s important to remain patient and follow the steps outlined by ICBC for submitting evidence and appealing decisions. In some cases, it may take several weeks for ICBC to reassess your claim, so try to manage your expectations and keep communication lines open with your claims representative.

It’s also helpful to keep a detailed record of your communications with ICBC. You should keep a clear record of all communications with ICBC regarding your vehicle valuation dispute. Keep track of emails, phone calls, and any documents you submit. This will help ensure that there are no misunderstandings and that you have a clear timeline of your case’s progress.

Step 6: Consider Retaining a Professional to Assist

If you’re still having difficulty securing a fair payout, you might consider consulting a professional. Some individuals choose to hire an independent vehicle appraiser or an insurance expert who can assist with the valuation dispute. These professionals can provide additional evidence and help you navigate the appeal process.

ICBC’s arbitration process can be used if the dispute is not resolved through the initial reviews. Arbitration is a form of dispute resolution conducted by a third-party arbitrator.

Step 7: Retain Salvage and Repair Privately

If ICBC declares your vehicle a total loss, you can retain the salvage of your vehicle and repair it privately. This can sometimes result in a better outcome, especially if you are able to repair the car at a lower cost than ICBC’s assessment.

Conclusion

Disputing ICBC’s vehicle valuation can be challenging, but it’s often worth the effort. By gathering comparable listings, understanding the local market, and following the right steps, you can often secure a fair payout for your totaled car. Remember, it’s important to stay patient, present solid evidence, and remain persistent throughout the process.

If your vehicle was written off in a car accident and need help navigating your insurance claim, don’t hesitate to reach out to the experts at King Insurance. Our team can guide you through the claims process, help you understand your rights, and ensure you get the payout you deserve.

About King Insurance

Located at the northwest corner of Marine Drive and Main Street, King Insurance proudly serves not only the South Vancouver communities of Marpole, Sunset, Oakridge, Victoria–Fraserview, and nearby areas like Marine Gateway and Marine Landing, but also clients across Richmond and the entire Lower Mainland.

Ka Hing Cheung is proud to work in the insurance industry, helping people manage risk and protect what matters most. Ka Hing is committed to ongoing learning and enjoys helping clients find the right coverage at the best available rate, while making sure they understand their options clearly.