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

Nelson council approves cannabis business selection system

City staff will use a scoring matrix using 10 criteria

Torch lit in Cranbrook to start countdown to BC 55+ Games

The Kimberley/Cranbrook 2018 55+ BC Games will take place Sept. 11-15

Aboriginal Day in Trail

Passion, pride and culture were on brilliant display at Gyro Park on Sunday

More early childhood education spaces at Selkirk College

Grant helps college add 24 new seats over two years

Unregulated private land logging continues near Nelson at Cottonwood Lake

Sunshine Logging of Kaslo is cutting on private land in the area of Giveout Creek Road

Homeless people living on ‘Surrey Strip’ move into modular housing

BC Housing says 160 homeless people are being moved into temporary Whalley suites from June 19 to 21

BC Ferries posts strong earnings before rate cuts

Last year highest ever for vehicle traffic, most walk-ons in 20 years

More than 150 tremors hit Vancouver Island in last 24 hours

Seismologists monitor to see if pressure will be added to major fault

Snapchat used to make mass shooting threat in Kamloops

RCMP did not dub the threat a hoax, instead called it “unsubstantiated”

B.C. groups file response to government’s fight against solitary confinement

B.C. Supreme Court judge suspended ruling for one year to give government time to draft legislation

National sports organizations have to report allegations of abuse immediately

Sporting organizations will lose federal funding abuse goes unreported, says Kirsty Duncan

BC conservation officers release badger from wolf trap

Badger recovering after being caught in trap near Williams Lake

B.C. Christian school mulls covenant, future of law school after court ruling

The university still wants to open a law school, but is looking at its options.

Ultra-low cost airline to launch in B.C. this week

Swoop destinations include Abbotsford, Hamilton, Winnipeg, Halifax and Edmonton

Most Read