A Ferrari after a crash in Australia. A similar incident in B.C. resulted in an ICBC payout of nearly $800,000 for repairs. (Flickr)

Exotic cars aren’t a drain on ICBC, David Eby says

Auto body repairs, legal bills pushing up vehicle insurance rates

Payouts like that of nearly $800,000 to repair a crashed Italian sports car aren’t the problem for the Insurance Corporation of B.C., Attorney General David Eby says.

Eby wouldn’t comment on the pending court case over a 1990 Ferrari F40 whose driver is suing ICBC after it paid out $789,375 to repair it after struck a utility pole in Vancouver in 2012.

Asked about the case at the B.C. legislature Monday, the minister responsible for ICBC said there is still some work to do to protect drivers of ordinary cars from the high costs of repairing high-end vehicles, but the provincial auto insurer’s cost overruns aren’t due to fixing fancy sports cars.

“I’m assured that we’re at a place with luxury cars where they are now paying for themselves, plus profit for ICBC,” Eby said. “The situation that I’m concerned about, that I’ve asked ICBC to address, is where the person is not at fault in an accident and he’s driving a luxury car, where someone else hits that car and is covered by that person’s basic insurance, which is where I think the cost can really get out of control.”

The former B.C. Liberal government moved in 2016 to refuse to sell collision and other optional coverage to drivers with vehicles valued at more than $150,000, because of the high cost of repairs. They had to turn to private insurers, except for pickup trucks, recreational vehicles, collector cars and limousines.

With ICBC facing a loss of more than $1 billion this year, the main cost pressures are clear.

“The big costs driving ICBC right now are twofold,” Eby said. “One is auto body repair costs generally, which are up 30 per cent across the board for all vehicles, and legal costs related to minor injuries that we are capping and moving over into a separate system, not B.C. Supreme Court, while improving coverage for people in B.C. to get better through rehabilitation.”

RELATED: ICBC to cap pain and suffering payouts

Just Posted

Administrative changes on the way for SD27

School District 27 announced several new administrative appointments moving ahead

Search continues for missing woman

Saskatchewan woman believed to have fallen into Raft River

Excessive speeding in the South Cariboo area

The weekly police report for the South Cariboo area

100 Mile House Elementary Students to show art at Parkside Gallery

All the proceeds from art sold will go to charities

Police release video on how to ‘run, hide, fight’ if there’s an active shooter

Vancouver police offer video with input from E-Comm, BC EHS, Vancouver Fire and Rescue

Study recommends jurors receive more financial and psychological support

Federal justice committee calls for 11 policy changes to mitigate juror stress

Research needed on impact of microplastics on B.C. shellfish industry: study

SFU’s department of biological sciences recommends deeper look into shellfish ingesting microbeads

B.C. dad pens letter urging overhaul of youth health laws after son’s fatal overdose

The Infants Act currently states children under 19 years old may consent to medical treatment on own

Singh sides with B.C. in hornet’s nest of pipeline politics for the NDP

Singh had called for a more thorough environmental review process on the proposal

VIDEO: Campers leave big mess at rural Vancouver Island campsite

Vehicle parts, garbage, a mattress, lawn chairs, beer cans, and even fecal matter left in the area

VIDEO: B.C. woman gets up-close view of Royal wedding

Kelly Samra won a trip back to her home country to see Prince Harry and Meghan Markle say ‘I do’

30 C in B.C., 30 cm of snow expected for eastern Canada

It might be hot in B.C., but the rest of Canada still dealing with cold

Horgan defends fight to both retain and restrict Alberta oil imports

Alberta says pipeline bottlenecks are kneecapping the industry, costing millions of dollars a day

Most Read