Limited Depreciation Policy
You can purchase aLimited Depreciation Policy if your vehicle is not more than three model years old, even if you are not the first owner of the vehicle. This policy increases the amount payable to you under your Autoplan Collision, Comprehensive or Specified perils insurance so that depreciation is not taken into account in the settlement of your claim for damage to your vehicle. (Note: Depreciation still applies to tires, batteries, convertible tops and vehicle paint).
Without a Limited Depreciation Policy, payment of any claim for damage to your vehicle is based on the cost of repairs or, if the car is a total loss, on the actual cash value of the vehicle at the time of the accident with depreciation taken into account. The rate of depreciation of newer vehicles can be quite which, and payment of a claim for your vehicle, if it is written off, may be lower than you expect. If you have financed the new vehicle, you may find the amount owed to the financial institution is higher than the amount of the total loss settlement.
RoadStars may instead want to consider the Replacement Cost Policy.
Limited Depreciation Coverage in a write-off
If, for example, you paid $15,000 for your vehicle and it was a total loss within the first, second or third model year, your Collision, Comprehensive or Specified Perils coverage alone would provide only the market value of your vehicle immediately before the loss or damage occurred. However, if you have an Autoplan Limited Depreciation Policy for a vehicle you purchased new, you will receive the lesser of:
- the purchase price of $15,000;
- the manufacturer's suggested retail price at the time of your purchase; or
- the replacement of your vehicle with a new one of like make, model, model year and style with similar options.
If you bought the vehicle used, you will receive:
- the replacement of your vehicle with a new one of like make, model, model year and style with similar options; or, if such a replacement is not available,
- 90% of the manufacturer's suggested retail price of your vehicle at the time it was manufactured.
Prior unrepaired damage would be deducted from the settlement of a total loss and since extended warranties are not part of the vehicle, they are not considered in settlement of a total loss.
Limited Depreciation Coverage if the Vehicle Can Be Repaired
If you have a valid Limited Depreciation Policy, and your vehicle is repairable and parts are required, ICBC will authorize repairs to be done using parts of a similar kind or quality to those used by the manufacturer of your vehicle, without applying depreciation. At ICBC's discretion, these parts may be new or used. The only exceptions are tires, batteries, convertible tops and vehicle paint, which are subject to depreciation even with this special policy.
Length of Policy
The Limited Depreciation Policy is issued for a maximum of one year at a time, just like your Owner's Certificate of Insurance and Vehicle License, and, for your convenience, will expire at the same time as your owner's certificate.
Adding Equipment After Purchase
Coverage under a Limited Depreciation Policy will extend to all additional equipment covered under your regular Collision, Comprehensive or Specified Perils Insurance. If the value of any non-manufacturer's equipment exceeds $1,000 for sound and communication equipment, or $5,000 for other equipment, the additional amount will have to be insured separately under an Excess Special Equipment Endorsement for you to recover the full amount of the loss.
Limited Depreciation Coverage for a Leased Vehicle
You can also buy a Limited Depreciation Policy for a leased vehicle, but we recommend that you check with your leasing company to make sure that any benefit it receives as a result of a claim is passed on to you. Remember, even though you are the one buying this policy, the leasing company still owns the vehicle. This means that after receiving a replacement vehicle from ICBC, it could insist you enter into a new lease agreement for the new vehicle. Then you may find this policy will be of little or no benefit to you.
Limited Depreciation Policy Restrictions
Coverage restriction for vehicles which are three model years old - vehicles in their third model year when the policy is purchased (eg. 1995 vehicles insured in 1997) are not covered for losses caused by fire, theft, vandalism or malicious mischief.
Age of the vehicle - the policy is only available for vehicles which are three model years old or newer.
Limited to certain types of vehicles and rate classes (rate class represents what the vehicle is used for) - only available for private passenger and commercial vehicles with a GVW of 5,000 kg or less that are used for pleasure, to and from school or work, business, artisan, farm, or fisherman use, pleasure use by a person age 65 or more, or motor homes used for pleasure.
Vehicle must be licensed and insured - your vehicle must be licensed and carry Autoplan Collision or Comprehensive coverage or both when you buy a Limited Depreciation Policy. If you later decide to store your vehicle and not renew your insurance, your vehicle will still be covered by the policy as long as you have applicable Own Damage coverage on it under an Unlicensed Vehicle Policy.
Check with your Autoplan Broker to ensure your vehicle is eligible for the Limited Depreciation Policy.
Documenting a Limited Depreciation Claim
When you make a claim, your adjuster will ask you for a copy of the detailed bill of sale showing the price you paid for your vehicle and its equipment. It is extremely important that you keep your bill of sale as long as you have a valid Limited Depreciation Policy.
*** this information was obtained from the "ICBC Optional Autoplan Insurance" Brochure
Special Coverages
ICBC has other Optional Autoplan policies available to all motorists. These policies offer additional coverage for such things as specialty stereo equipment and rental vehicle use.
EXCESS SPECIAL EQUIPMENT
If you vehicle contains non-manufacturer's sound and communication equipment worth more than $1,000, such as a stereo, that is PERMANENTLY ATTACHED or installed by means of a shuttle mount, you can purchase an Excess Special Equipment Endorsement to insure it for its full value. An Excess Special Equipment Endorsement can also be purchased for other non-manufacturer's equipment exceeding $5,000 that is permanently attached to your vehicle.
SPECIAL SOUND AND COMMUNICATION EQUIPMENT ENDORSEMENT
A special endorsement is available to cover non-manufacture's sound and communication equipment which is not permanently attached. This coverage does not cover equipment designed to be operated in a location other than the vehicle.
Please see your Autoplan Broker for more information.
RENTAL VEHICLE POLICY
Rental Vehicle Insurance protects you if you rent or borrow a vehicle. It includes:
- Third Party Legal Liability (to $1,000,000);
- Accident Benefits (to occupants of the rented or borrowed vehicle);
- Underinsured Motorist protection;
- Collision with $200 deductible
- Comprehensive with $100 Deductible
- Loss of use to $25 per day to a total limit of $250; and
- Payment for claims made by rental companies for loss of rental income
Few rental companies offer all these coverage, and they usually charge a much higher premium than you would pay for the Autoplan Rental Vehicle Policy. As well, few credit cards provide these same coverage.
Although insurance offered by the rental companies or credit cards may have similar names, they often vary from place to place or company to company. For example, if you rented a car from a company in Florida and the vehicle was vandalized, the Comprehensive coverage purchased from the rental company may not cover vandalism claims. Under Autoplan's Rental Vehicle Policy, damage caused by vandalism is covered.
A version of this policy is also available as part of the Roadstar Package.
The Rental Vehicle Policy may be purchased by a BC resident or any BC registered company. It can be purchased for as little as one day or as long as one year (but each rental term may not exceed 30 days). It is not available to visitors to the province, nor can BC residents purchase it for visitors. The policy covers the person named on the policy and any other person who is identified as a permitted driver on the rental contract.
You should arrange for coverage with an Autoplan Broker before the date you require the rental vehicle. Coverage should be purchased for the longest term for which you are likely to need it.
If you are making advance arrangements for a rented vehicle, you or your travel agent should make sure the rental company you choose will accept the Autoplan Rental Vehicle Policy. Most companies accept the policy, however, some may ask for a larger deposit than usual if you do not buy their coverage. If you plan to rent a vehicle when you arrive at your destination, select a rental company that accepts the Autoplan Policy.
Like other Autoplan Policies, coverage applies throughout Canada and the USA, including Alaska and Hawaii, but not Mexico or any other country.
The Autoplan Rental Vehicle Policy covers any private passenger vehicle, motor homes, motorcycle, trailer or commercial vehicle (that does not have a GVW of more than 5,000 kg) used for pleasure or business purposes.
The Policy does not cover:
- vehicles used for carrying or delivering goods for compensation;
- a bus with a seating capacity of 16 or more used for carrying passengers; or
- a vehicle used to carry passengers for compensation or hire.
***this information was obtained from the "ICBC Optional Autoplan Insurance" Brochure
Licensing And Insuring Antique & Collector Vehicles
Licensing and insurance options for car enthusiasts:
There are special requirements for the registration, licensing and insuring of an Antique or Collector vehicle. This describes the qualifications for Antique and for Collector status and tells you how to apply for a license plate and insurance for either kind of vehicle.
ANTIQUE VEHICLES
What is an Antique Vehicle?
To be considered an Antique, a vehicle must be all of the following:
- 30 years of age or older;
- owned as a collector's item;
- maintained in it's original condition as nearly as possible with original parts;
- mechanically sound (meeting Motor Vehicle Act Standards).
How do I get plates for my Antique vehicle?
If your vehicle qualifies, is complete and is in running order, you can fill out an Antique Vehicle License and Certificate of Registration at any Autoplan Broker's office to obtain your Vintage plate. You need to supply the broker with at least four photographs of your vehicle: side view, front view, engine compartment, and vehicle's interior including the driver compartment.
If you are licensing your vehicle for the first time, you will also need to register it. This will require proof of ownership. If the vehicle was brought to BC from Outside the province, it will need a mechanic safety inspection. Your Autoplan broker can provide you with a list of designated inspection facilities.
Do I need Insurance?
Yes. A vehicle with Vintage Plates parked or operated on any public highway must have basic third-party legal liability coverage of $200,000. Your Autoplan Broker can sell you a Vintage Motor Vehicle Policy for on-road or storage coverage for vehicles that either have, or are eligible to have, Vintage Plates.
When may I drive an Antique Vehicle?
An Antique vehicle with Vintage Plates may be driven only:
- to or at exhibitions, club activities, parades and similar functions;
- to or at public functions such as the opening of a new highway;
- in weddings and graduations;
- to be inspected at an approved motor vehicle inspection station (repair garage);
- to have repairs done.
May I keep the Vintage plates if I sell the vehicle?
No. The vintage plates stay with the vehicle when it is sold. If you wish to sell your Antique vehicle and it has valid Vintage plates, the new owner has to complete an Antique Vehicle License Transfer and a Transfer of ownership at an Autoplan broker's office.
May I display more than one license plate on my Antique vehicle at one time?
Yes, when you are displaying your Vintage Plate you may also display a plate of the year of the vehicle. You may not display your Vintage plate at the same time as a regular or personalized plate.
Collector Vehicles
The Collector Vehicle program was created to allow car enthusiasts to enjoy a pleasure drive on sunny days or evenings in addition to driving their vehicles in events such as parades and club activities. Collector vehicles should not be used for everyday general transportation. Since most have a high value and are maintained in excellent condition, their owners are expected to drive them infrequently, thereby reducing their exposure to the risk of a crash. ICBC can then offer insurance to their owners for much less than the cost of regular vehicle insurance.
How do I know if I qualify for Collector plates and premiums?
You and your vehicle must meet the following requirements:
- You own or lease another non-Collector vehicle registered and insured in your name, or you drive a company vehicle for everyday transportation;
- Your vehicle is at least 25 years old;
OR
- Your vehicle is at least 15 years old and is a limited production vehicle: that is, 1,500 or fewer of that model were produced by the manufacturer worldwide for that model year;
OR
- Your vehicle is at least 15 years old and the owner of the marque or make of your vehicle has ceased manufacturing vehicles of any kind for at least 5 years;
- Your vehicle is in exceedingly good stock condition regardless of age and maintained or restored to meet the manufacturer's original specifications except for upgrading of brakes, brake lights, or headlights or installation of seat belts, safety glass, directional signals, or era accessories listed on the application for Collector vehicle status;
- Your vehicle is fully assembled;
- The model year of your vehicle is the model year designated by the manufacturer;
- Your vehicle is registered in BC;
- Your vehicle is a true vehicle, not a replicar, modified vehicle, cab/chassis, motor home, or kit car;
- Your vehicle is driven ONLY for pleasure use and not, at any time, to drive to or from, or part way to or from, work or school.
Where can I apply for Collector status and how much does it cost?
Your Autoplan broker has application forms and there is no charge to apply, although you need to include photographs as indicated on the form (Polaroid pictures are not acceptable). Once you have completed the application and attached the photographs, you or your broker can send it for approval to the ICBC address given on the form.
Will my application be approved?
The most common reasons applications are declined include:
- non-stock equipment such as: cassette decks, extra speakers, custom steering wheels, Mag wheels, engine dress-up equipment, etc;
- the condition of the vehicle body: rust, dents, blemishes or chipped paint;
- the condition of the vehicle's interior: seats ripped or soiled, door panels or armrest need repair;
- the condition of the engine compartment: it's paint must be in good condition and all surfaces must be exceptionally clean and free of rust, grease and grime.
Once I have Collector Status, do I have to license and insure my vehicle right away?
No. The approved application is valid as long as you own that approved vehicle. Please, for your own convenience, don't loose the application form. If you lose Collector plates or decide to cancel Collector insurance, your Autoplan broker must see the approved application before they can authorize new Collector plates. If you don't have an approved application form, you will have to reapply with a new form and pictures to regain your Collector status.
Once my application is approved, will ICBC send me my Collector plates?
No. Your approved application form will be mailed back to you; then you can act as quickly or wait as long as you wish to license your vehicle. Once you're ready to for licensing, you need to order your plates from ICBC through your Autoplan broker's office by taking your application there and coming back when the plates have arrived, usually about four working days. The broker can then license and insure your Collector vehicle.
May I display more than one license plate on my Collector vehicle at one time?
Yes, when Collector plates are in force on your vehicle you may also display Vintage plates.
What if my vehicle is not in exceptionally good condition or doesn't meet the requirements?
If you use Collector plates even though your vehicle does not meet the requirements, your insurance may be forfeited in the event of a crash or other claim.
When you apply for Collector vehicle status, you must sign a declaration stating that you understand and meet the requirements. This declaration forms part of your insurance policy.
What if my vehicle qualifies as a Collector but it is my only vehicle?
To qualify for the reduced Collector premium, you must have another non-Collector vehicle registered, licensed and insured in your name, or an assigned company vehicle that you use for everyday general transportation. If you don't have such a vehicle, you may still obtain Collector plates, but you will have to pay the full pleasure use premium for your vehicle. Unfortunately, even though "pleasure use" insurance covers occasional travel to work, you would be subject to a fine for doing so. The Collector license regulations do not permit driving the vehicle to work.
If I sell my Collector vehicle, are the Collector plates transferable?
No. The new owner must apply with recent photographs of the vehicle and a completed application form. These will form part of the new owner's insurance contract.
If I have two or more Collector vehicles, may I use one plate for all of them?
Yes. Once you have approved Collector's status on two or more vehicles, take an approved application for each of your vehicles to an Autoplan Broker. They can advise whether this option is suitable for your needs. If it is, have your broker submit the necessary documentation to ICBC's Garage and Fleet Department to obtain a premium quotation for a multi-Collector plate. This plate allows you to operate one of your Collector vehicles on the road while covering the others (if you so choose) with off-road storage insurance.
What if my vehicle has never been registered in BC?
Every vehicle operated on a highway in BC must be registered. See your Autoplan broker for further details.
***this information was obtained from the "Licensing and Insuring Antique & Collector Vehicles" Brochure.
Autoplan 12 - Monthly Payment Plan
Autoplan 12 is a convenient way to pay your annual Autoplan premium in 12 monthly installments. That means more choice than ever for Autoplan customers. Autoplan 12 is a loan arranged on your behalf through the Toronto-Dominion Bank, ICBCÕs sponsoring bank for Autoplan 12. Your insurance broker does all the paperwork. Then, once each month your Autoplan 12 payment is automatically debited from your bank. Autoplan 12 is an option many customers have requested. And it's available from your Autoplan broker.
Autoplan 12 Key Features
Pre-qualifications: Most customers automatically qualify for Autoplan 12 because of their good payment history with ICBC. Only those who have dishonoured two cheques to ICBC in the past two years are not eligible.
One-Stop Service: All Autoplan 12 paperwork is handled by your insurance broker when you buy your annual Autoplan insurance. Your first payment will be debited directly from your bank account on the effective date of your policy. Remaining payments will be debited once each month for the next 11 months.
Prime plus 3%: The interest rate on the loan will be the prime interest rate at the time you enroll plus three percent, calculate on a declining balance. This is less than most banks and financial institutions charge for most short-term personal loans, and it's much less than the interest rates charged on credit cards.
User-pay: Autoplan 12 is NOT subsidized by ICBC customers who are not using the plan. It does not affect the overall cost of insurance premiums for BC motorists. Instead, the cost of delivering Autoplan 12 is covered by the interest charges and an administration fee of $15.
Other Features:
- You need a chequing or savings account at a Canadian financial institution that permits direct debit payments, but you do not need to be a TD Bank Customer.
- The interest rate will be fixed for the full term of your loan on the day you apply for and enroll in Autoplan 12.
- You may pay off all or part of your outstanding loan balance at any time without penalty.
- You may finance any portion of your annual premium with no minimum. (Only annual Autoplan policies can be financed through Autoplan 12.)
- Your first Autoplan 12 payment will be debited from your bank account on the effective date of your policy, but you may select the monthly withdraw date for the 11 remaining payments.
- If you increase your coverage or make other changes to your Autoplan policy during the year, you may incorporate the costs into your Autoplan 12 payment.
- If you cancel or reduce your Autoplan coverage during the year, any refund on your policy will be automatically applied to your Autoplan 12 outstanding balance. In the event of a cancellation and the refund is not enough to pay off your Autoplan 12 balance, the difference will be required to be paid at the time of cancellation.
Promissory Note: If you decide to enroll in Autoplan 12, your broker will give you a copy of the Terms and Conditions of your agreement and ask you to sign a Promissory Note. These two documents comprise your binding legal agreement to make Autoplan 12 payments. Please read both carefully.
IF YOU MISS A PAYMENT...
Mistakes can happen. If there are insufficient funds in your account to cover a monthly payment, the TD Bank will try to debit your account a second time within 3 Ð 7 working days. If the funds are still not in you account to cover the monthly payment, the TD Bank will try to contact your to correct the problem. However, if payment is not received within one month, your Autoplan 12 account will be closed and you will be required to pay the balance of your premium in full. As with other payment options, you will not be eligible for further insurance coverage until the outstanding balance is paid. And you will not be eligible to re-apply for Autoplan 12 for the next two years.
COST COMPARISONS:
Annual |
Autoplan 12 |
Short term |
Short term |
Premium |
$89/mth |
policies (2x6mths) |
policies (4x3mth) |
$1000 |
$1071 |
$1070 |
$1140 |
The above shows a cost comparison between Autoplan 12 and other Autoplan payment options for an annual insurance premium of $1000. The Autoplan 12 example is based on an interest rate of 12% (a prime rate of 9% plus 3%, calculated on a declining balance) and includes an administration fee of $15.
In this example Autoplan 12 would cost more that the annual lump sum policy, about the same as two six-month policies (short-term) policies, but significantly less than four three-month policies. Comparing the cost and the convenience of monthly payments, only you can decide which option works best for you.
How to Enroll:
Enrolling in Autoplan 12 is easy. Your broker will confirm your eligibility and make all the arrangements when you renew your Autoplan insurance.
Here's all you have to do:
Give your broker a void cheque for the bank account that you wish to use for your Autoplan 12 Payments (also, don't forget your current insurance certificate & registration)
Read and sign the Promissory Note accepting the legal Terms and Conditions of Autoplan 12
And that's it. Your account will be automatically debited for each of your monthly Autoplan 12 payments.
***this information was obtained from the "ICBC Autoplan 12 Ð The new monthly payment option from ICBC"
Fighting Fraud
ICBC is stepping up the fight against auto insurance fraud.
The insurance industry estimates that 10 to 20 per cent of claims dollars are paid for fraudulent claims. At that rate, fraud costs an average ICBC policyholder about $150 a year.
To combat this, we have developed new anti-fraud measures aimed at controlling premiums and providing better service for honest customers. Among Fraud Prevention Services programs ICBC has recently launched or strengthened:
Enhanced Claims Handling
Exhaustive investigations into a large sample of material damage claims by teams in 14 claims offices identified indicators of fraud in non-injury claims and the best practices to catch it.
We're now using that focused, improved approach to deliver better, faster service to the vast majority of customers while denying more of the claims that are fraudulent.
Hit and Run Teamwork
Across the province, police are now on-site at ICBC claims offices to participate in investigation of hit and run claims. Together with the Dial-A-Claim message that lets claimants know about that teamwork, this program is substantially reducing the number of claims in which people try to avoid paying deductibles by blaming damage on fictitious hit-and-run drivers.
Specialized Investigations
There are several ICBC "fraud squads."The Special Investigation Unit (SIU) is one of the largest among North American auto insurers with some 40 professional staff (all former police officers). Each year, SIU conducts about $2,000 investigations of fraud and other abuse of ICBC policy dollars, leading to hundreds of criminal charges.
Bodily Injury Specialist Fraud Units work to unearth fraud rings - groups of people who plot to defraud the Corporation and its policyholders. These units also target fraud by those who provide professional services on ICBC claims. In 1996 their work led to Canada's largest-ever auto insurance fraud conspiracy case by a single insurance company.
Claims Investigation Teams are pairings of experienced injury adjusters and SIU officers in each claim office who investigate cases of individuals lying to get more money than they are due. In the first few offices in which these teams were established, they saved policyholders an estimated $2.7 million in under 12 months.
A New, Harder Line
On behalf of all our customers, ICBC now has a policy of suing those caught making a fraudulent claim. We're aiming to recover all related costs - money paid out, investigation costs, etc. - and punitive damages. Whenever possible, we're also working with police to press criminal fraud charges against deliberately dishonest claimants. As well, new legislation was finalized in 1997 to increase fines for auto insurance fraud - to as much as $25,000 for an individual's first offence and up to $50,000 for further offences - as well as providing for jail terms.
National Co-operation
ICBC is a founding member and leader of both the Canadian Coalition Against Insurance Fraud and its BC Chapter. The CCAIF is an organization of insurance companies, police and fire departments, consumer groups and others working to reduce the costs of insurance fraud to Canadians - estimated at over $2.3 billion every year.
Customer Service Improvement
We're streamlining service and making it more friendly by focusing more closely on claims where there's a good indication that investigation is needed. And we've found that most customers appreciate that these checks are helping control the overall cost of claims and the price of everyone's premiums.
You Can Help!
If you know that someone is making a fraudulent claim, call our Tip Line 1-800-661-6844. And, just as important, if the subject comes up in conversation, let your friends and acquaintances know what you think about people who drive up your insurance premiums by lying to get money they don't deserve.
By preventing, deterring and catching fraud, ICBC expects to save policyholders over $100 million annually!
Fraud hits you in the pocket book. Hit back.
Also check out ICBC's web site http://www.icbc.com.
- Courtesy of ICBC's Road Sense brochure "Fighting Fraud."
