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

High water closes Canoe Beach Cafe

The Cafe will reopen once the high water has receded.

Update: Two fires in the Shuswap no longer active

Fire crews also gain control of Perry River blaze between Sicamous and Revelstoke

Allie Lake wildfire still out of control at 2,200 hectares

112 firefighting personnel and 10 helicopters are tackling the flames

Airbnb hosts earning millions in the Okanagan

The Okanagan was among the list of three Canadian wine markets.

UPDATE: One dead, two in hospital after Highway 1 crash near Bridal Falls

Closure expected to last hours, while drivers are told to take detours

Trans Mountain pipeline: Is it worth the risk?

Concerns range from the threat of an oil spill to the impact of tanker traffic on wildlife

Wildfire sparked north of Merritt, estimated 8 hectares

BC Wildfire Service is responding to the fire near Chattaway Lake FSR 27 kilometres north of Merritt

Call for artists for upcoming South Okanagan exhibition

The Penticton Art Gallery is inviting artists from across the globe to submit artworks

B.C. to spend $181M to create 200 general practitioner jobs

Jobs will go to new medical school graduates

Vernon company wins Ozone best production

Powerhouse Theatre’s Calendar Girls will move on to the Theatre BC Mainstage Festival

Federal leaders trade barbs about India trip at press gallery dinner

Justin Trudeau’s infamous trip to India earlier this year was the focus of many of the jabs

B.C. VIEWS: Our poverty reduction plan is already in place

NDP has another promise it needs to appear to keep

Most Read