Accelerated Depreciation
Why should I care about Accelerated Depreciation on my motor vehicle?
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Our vehicles are becoming more expensive to purchase each year, therefore a serious accident can be a real hit to our wallet as well.
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Information on vehicle history and declarations are easily available today, so purchasers can be very well informed before they buy a pre-owned vehicle.
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In general, a buyer will not pay as much for a damaged-but-repaired vehicle as one with a clean history.
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This Accelerated Depreciation in the value of the vehicle can be in the thousands of dollars. Precedent has been set in BC for owners to make a claim request to ICBC to be reimbursed for a percentage of this loss. This is done through their ICBC adjuster and no longer through small-claims court. (Rutter v. Adams - Line 198/311) (Signorello V. Khan - Line 11/49)
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Precedent has also been set where this claim can be made without selling or trading the vehicle. (Cummings v. 565204 BC Ltd. - Line 73)
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If the client definitely wants to sell the repaired vehicle, we have a network of dealers who will buy damaged-but-repaired vehicles other dealers don’t want, at a fair price.
Why should I as a lawyer care about Accelerated Depreciation?
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It is a worthwhile value-add for your practice to make your client aware of this Accelerated Depreciation before you launch a suit against ICBC. The client will appreciate you looking out for them.
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This removes the task from your workload allowing you to concentrate on the other important services you alone can offer your client.
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We can assist your client now in terms of education and guidance, and help them gain the best return from ICBC now rather than waiting 2 years for the suit to be settled.
What should the client do?
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Contact us the day of the accident, maximum within 2 years of the event
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Confirm vehicle is owned outright, or financed through bank loan, not a lease
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Confirm BC driver to BC Driver (no animals, has to be a person)
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Confirm minimum $4,500 in damages
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Have their CL14 Repair Supplement in hand