If you have just been in an accident that was clearly not your fault and your vehicle was towed away, it can feel like the worst is over. Consider this common example: The police confirm the other driver lost control. You were not speeding. There was nothing you could have done.
Then you receive an email from the Insurance Corporation of British Columbia (ICBC) saying they will not pay towing or storage fees.
Wait. What?
If you are confused, you are not alone. This question comes up frequently, especially for newcomers to the province of British Columbia or drivers with older vehicles. Let’s break down the general information regarding what is happening and why.
“I Was Not at Fault. Why Am I Paying?”
Before 2021, many drivers assumed that if they were not at fault, the other driver’s insurance would ultimately pay for damage to their vehicle. That made intuitive sense.
But BC now operates under ICBC’s Enhanced Care model, often described as “no-fault insurance.” Under this system:
- You claim through your own policy.
- Your coverage determines what gets paid.
- Fault generally affects deductibles and premiums, not whether damage is covered.
That means whether ICBC pays for towing, storage, or vehicle repairs depends on the coverage you purchased, regardless of the circumstances or who else was involved in or actually responsible for the crash.
What Basic ICBC Auto Insurance vs. Collision Coverage Actually Covers
ICBC Basic Autoplan insurance is the mandatory coverage you need for a vehicle in B.C. This coverage includes:
- Liability coverage if you injure a person or damage their property
- Accident benefits for income replacement if you are unable to work due to injuries.
- Medical care for you, your passengers, and any household members in the accident.
- Underinsured motorist protection
What it does not automatically include is coverage for damage to your own vehicle. This type of damage coverage is known as “collision coverage”. This covers you if you hit another car or an object. It is important to distinguish this from Comprehensive coverage, which protects against all perils that non-collision risks like theft, fire, or vandalism.
If you declined Collision coverage to save on premiums—perhaps because the car isn’t listed as high value—you essentially chose not to insure your own vehicle for crash damage. In that case, ICBC typically will not cover:
- Repairs to your car
- Towing related to vehicle damage
- Storage fees at a tow yard
- Disposal costs for a total loss
Even if you were completely not at fault.
This is often the source of the shock.
Why Storage Fees Become the Real Problem
When police order a tow after a collision event, your vehicle is taken to a storage facility. From that point on, daily fees begin accumulating.
Depending on the facility, storage can cost anywhere from $25 to $40 per day or more. Within a couple of weeks, those fees can exceed the value of an older vehicle. (This can be even more complicated if you have a lease agreement requiring specific repairs).
If your car was worth $2,000 and you do not have collision insurance, ICBC may confirm that they will not pay storage fees. That means you are responsible for dealing directly with the tow yard. You have the right to request a formal review of the decision by a supervisor or manager if ICBC denies coverage for vehicle storage fees.
It feels unfair. But from the insurer’s perspective, they are following the terms of your policy.
Why This Feels Misleading to Many Drivers
For many people, insurance feels like a safety net for accidents that are not their fault. That expectation is reasonable.
However, under Enhanced Care, insurance in BC works more like this:
You insure yourself.
Collision coverage pays for damage to your vehicle caused by a collision with another object or vehicle or if it rolls over. If you do not purchase it, you are effectively self-insuring your car.
The tradeoff is lower premiums in exchange for taking on that risk yourself.
Many drivers with older cars skip this coverage because the car’s value is low. A similar logic applies to those with very high deductibles. That can make financial sense. But it also means situations like this are possible.
What You Can Do If This Happens
If you are facing mounting storage fees, act quickly.
- Contact the tow yard immediately.
Ask about:
- The daily storage rate
- Whether they will reduce or cap fees
- Whether you can sign the vehicle over to them
- Whether hardship options are available
- Confirm your coverage with ICBC.
Ask specifically:
- Are storage fees denied solely because you do not have Collision coverage?
- Is any portion of the initial police-ordered tow covered?
- Consider whether keeping the vehicle makes financial sense.
If storage fees exceed the vehicle’s value, it may be cheaper to release or sign over the car sooner rather than later.
Time matters in these situations.
The Role of Optional Coverage in Your ICBC Insurance Policy
It is not that insurance covers nothing. It is that different parts of insurance cover different risks.
Basic ICBC protects you from:
- Being financially ruined if you injure someone
- Losing income after an accident
- Paying out of pocket for someone else’s damage
But it does not automatically protect your own vehicle.
That protection is optional.
For drivers with inexpensive vehicles, skipping Collision can be a rational financial decision. The downside is that when a crash happens, even one that was not your fault, you may still face out-of-pocket costs.
The Bottom Line
If ICBC says they will not pay storage fees after a not-at-fault crash, the most common reason is that you do not have optional collision coverage.
It is frustrating. It feels counterintuitive. But under BC’s current insurance system, fault does not determine whether your vehicle damage is covered. Your policy does.
If you are unsure about your coverage going forward, it may be worth reviewing your Autoplan with a broker when you renew to understand exactly what risks you are carrying and what you are not.
Because the hardest insurance lessons are the ones you learn after the accident, not before it.
Other Tips To Note:
- Your Basic insurance includes $200,000 in Third Party Liability (TPL) coverage.
- Basic Vehicle Damage coverage is included in your Basic insurance and covers repairs when the other driver is responsible.
- All perils coverage is designed to respond to all causes of loss except for those specifically listed as exclusions in your auto policy.
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 Canada’s 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.
Related Links
https://www.icbc.com/claims/enhanced-care
https://kinginsurance.ca/car-insurance/
https://kinginsurance.ca/hit-and-run-coverage-for-b-c-drivers/