Last updated 2022-06-16
Vehicle owner's responsibility for towing and storage fees policy
Policy on the responsibility a vehicle owner has regarding towing and storage fees when their vehicle is involved in a crash.
Policy
A vehicle owner may be held either fully or partially responsible for towing and or storage fees based on the
- the status of their coverage
- their responsibility in a crash, and
- the responsibility and coverage status of other parties involved in a crash.
The claims representative must send the
- vehicle owner a Removal from Tow Yard (CL555) letter informing them of their responsibility for towing or storage fees, once determined, to allow them to take action and mitigate costs, and
- tow company a CL555A to ensure they invoice the vehicle owner and ICBC correctly.
Note: If the vehicle is leased, the CL555 is sent to the lessor.
| Scenario | Responsibility |
|---|---|
| Vehicle owner without Collision coverage who are fully at fault for a crash. | The vehicle owner is responsible for towing and storage costs. |
| Vehicle owner without Collision coverage who are partially at fault for a crash | Reimbursement may be considered for the percentage of responsible for which the vehicle owner is not liable. While liability is being determined, you may authorize the initial towing and storage costs and seek to recover the percentage of liability the vehicle owner is responsible for. |
| Vehicle owner without Comprehensive or Specified Perils coverage, when the loss falls within the definition of either coverage. | The vehicle owner is responsible for towing and storage costs. |
| Claims where coverage investigation is occurring and is expected to take a significant length of time. | When a coverage issue is identified, the claims representative must notify the tow company and the vehicle owner as soon as possible, but no later than 45 days after the date of loss (DOL), that ICBC is not responsible for paying to store the vehicle during the remainder of the investigation of the claim. The claims representative must send the CL555 and the CL555A confirming with the tow company and the vehicle owner they are responsible for storage costs starting 5 days from the date of issue on the letter. |
| Confirmed breaches or claim denials | The vehicle owner is responsible for storage costs once the CL555 is sent and may be responsible for the initial towing and storage costs. Where ICBC has paid the initial towing and storage costs prior to the CL555 and CL555A being sent, the claim may qualify for recovery of the towing and storage expenses paid directly to the tow company from the vehicle owner. |
| Claims that qualify for recovery of towing and storage costs paid | The exposure owner may be able to refer the claim to account services to recover all or part of the towing and storage expenses paid directly to the tow company as part of the claim investigation. The exposure owner must review the claim with their manager to verify if the claim qualifies for recovery through account services. Where the claim qualifies for referral to account services, refer to the procedure, Send a recovery to Account Services. Note: A demand letter needs to be sent before it is referred to Account Services.
|
| Vehicle owner without Collision coverage, where the party responsible for the crash is not insured by ICBC. | The vehicle owner is responsible for dealing directly with the responsible party and or their insurer regarding towing and storage costs. |