Co-insurance calculations on a declared value vehicle
Examples of how co-insurance is calculated on either a total loss vehicle or repairable vehicle when co-insurance applies.
Co-insurance
The estimator or appraiser needs to discuss the co-insurance amount with the customer, when co-insurance applies.
| Co-insurance | Details |
|---|---|
| Co-insurance does not apply |
The actual cash value (ACV) is less than the declared value, and the customer is not responsible for the crash. |
| Co-insurance applies |
The ACV is more than the declared value, and one of the following applies:
|
Total loss calculation
- ACV, including taxes, or
- declared value on the policy.
- Total loss payout and co-insurance calculations
- For this scenario, a customer has underinsured their vehicle, meaning their declared value is below the ACV.
Total loss calculation Amount Declared value $7,200 ACV including taxes $8,400 Total loss amount $7,200 less deductible
- Upon the sale of salvage, co-insurance applies to the ICBC salvage recovery amount.
Salvage calculation Amount Declared value divided by ACV $7,200 DV/$8,400 ACV
= 0.85 x 100
= 85%ICBC co-insurance portion 85% Customer co-insurance portion 15% ICBC salvage recovery amount $1,000 Amount payable to customer $1,000 x 15% = $150
Repair calculation
When a vehicle with a declared value is determined to be repairable and co-insurance applies, the customer is responsible to pay for a portion of the repair. The amount payable by the customer to the repair facility is determined using the co-insurance calculation.
The following scenario is for a customer who has underinsured their repairable vehicle.
| Repair calculation | Amount |
|---|---|
| Declared value divided by ACV |
$7,200 DV/$8,400 ACV |
| ICBC co-insurance portion | 85% |
| Customer co-insurance portion | 15% |
| Repair estimate amount | $4,200 |
| Customer's amount payable to repair facility | $4,200 x 15% = $630 plus deductible |
Additional information
- Autoplan Optional Policy, Section 5.10 Declaration of value
- ICBC Autoplan insurance guide