Last updated 2021-06-30


Definition of depreciation, the items depreciation applies to, and considerations to component condition.


Depreciation relates to the wear and tear of vehicle parts based on the average life expectancy of that part as determined by the manufacturer. The difference between the cost of a replacement part and the remaining value in the damaged part is referred to as depreciation.


Depreciation does not apply to replacement parts that are
  • recycled
  • refurbished
  • exchanged, or
  • rebuilt.
Depreciation should not be applied to power train components
  • if the vehicle is still under factory warranty
  • with ICBC endorsement policies, including
    • Limited Depreciation Endorsement (APV297A)
    • Replacement Cost Endorsement, (APV286A), or
    • New Vehicle Replacement Plus, or
  • where recycled parts are used.
Note: Factory warranty and endorsements policies must be validated by ICBC.


The threshold for depreciation determines when depreciation applies or does not apply.
If the total depreciation dollar amount on a claim is ... Then ...
less than $100, before taxes depreciation does not apply.
more than $100, before taxes the customer is responsible for the full amount.
The collision repair program participant must resubmit the revised estimate to ICBC for reassessment of the total depreciation, if additional parts are added during a supplement.
Note: The depreciation amount is calculated on the final estimate submitted for payment.

Depreciation on aftermarket or re-manufactured parts

When replacing an Original Equipment Manufacturer (OEM) part with an aftermarket or re-manufactured part, if a lower priced part of similar kind and quality is used, common sense and good judgement can apply to determining depreciation, matching the depreciated cost of the OEM part, if necessary. This includes vinyl and convertible tops.

If the identical make and model of electronic equipment is available, no depreciation is applied.

Items where depreciation is applicable

Depreciation on major mechanical components
  • is based on the condition of that component
  • applies
    • only if there are obvious signs of wear or deterioration, and
    • on parts, and
  • is applied to all replacement parts with a measured life expectancy.
Abusive wear or extraordinary care and maintenance must be considered, and betterment should be applied at the ICBC estimator's discretion. Depreciation is applied to the replacement cost of parts before taxes. Depreciation is not applied to labour.
Important: This does not apply to commercial vehicles.
Vehicle component Betterment Percentage of depreciation
Interior electrical components (excluding stereos) No depreciation N/A
Aftermarket sound and communication equipment 0-23 months 0%
2-6 years 10% per year
6+ years 80% maximum
Batteries 0-23 months 0%
2-6 years 20% per year
6+ years 90% maximum
Major mechanical components, including
  • engine assemblies, both long and short blocks
  • transmission assemblies
  • differentials
  • turbochargers
  • superchargers, and
  • related powertrain components
0-100,000 kms N/A
100,001-150,000 kms 10%
150,001-200,000 kms 20%
200,001-250,000 kms 30%
250,001-300,000 kms 40%
300,001 kms and over 10% for each additional 50,000 km to a maximum of 80%
Other mechanical components, including
  • radiators
  • condensers
  • exhaust components
  • alternators
  • starters, and
  • related components
0-100,000 kms 0%
100,001-200,000 kms 5%
200,001-300,000 kms 10%
300,001-400,000 kms 15%
400,001 kms and over 5% for each additional 100,000 kms up to a 50%
Suspension components, including
  • struts
  • shocks
  • ball joints
  • tie rod ends
  • steering racks
  • drag links
  • strut bushings
  • hub and bearing assemblies, and
  • other depreciable items.
0-80,000 kms N/A
80,001-100,000 kms 10%
100,001-125.000 kms 20%
125,001-150,000 kms 30%
150,001-175,000 kms 40%
175,001-200,000 kms 50%
200,001 kms and over 60%
Vinyl and convertible tops 0-4 years 0%
5-8 years 25%
8-12 years 50%
12+ years To a maximum of 80%
Complete repaints Estimator discretion, based on condition.
Note: Depreciation on complete paint jobs includes the cost of paint and labour operations, such as the remove and re-installation of parts required during the painting process.
Up to a maximum of 80%
Tires Measured remaining tread on tire being replaced Pro rate according to original tread depth