Windshield repairs covered by ICBC are a major portion of glass shops’ business. (Wikimedia Commons)

Windshield shops hit by new ICBC regulations

ICBC rejects claim glass rates haven’t changed in 20 years

An “arbitrary” 14 per cent increase in ICBC’s discount on windshield replacements is pushing auto repair businesses to lay off staff or in some cases even close down, an industry association says.

Automotive Retailers Association president Ken McCormack said Wednesday he has taken the issue up directly with Premier John Horgan and Attorney General David Eby, who have moved aggressively to reduce accident claim costs at ICBC. The association is also lobbying individual MLAs to change legislation.

In addition to raising basic insurance rates by 6.4 per cent, the B.C. government has moved to cap soft tissue injury payouts and targeted body shop costs that ICBC says have risen 30 per cent in the past two years alone.

RELATED: ICBC called financial ‘dumpster fire’

RELATED: ICBC to cap pain and suffering awards

The association says glass shops aren’t the problem, since they haven’t had a significant increase in their windshield replacement rate for 20 years. It estimates that ICBC business accounts for 60 to 70 per cent of glass shops’ business, and glass repairs account for only 8.5 per cent of ICBC’s vehicle repair costs.

ICBC issued a statement calling the suggestion of a 20-year freeze on rates “completely false. ICBC’s last labour rate increase for its top tier glass suppliers (Glass Express) occurred on Jan. 1, 2016.”

Another cost-saving change is the requirement to use the cheapest windshields available. McCormack says that often means ordering from a dealership, with a delay of days, rather than using aftermarket windshields that are in stock.

ICBC cites a steep increase in accident claims, along with soaring legal costs as people hire lawyers to pursue injury payouts. The rise in accidents has been significant in the past two years, after a period of little increase as vehicles and roads become safer with construction and new technology.

The Attorney General’s ministry issued a statement in response, calling the changes to glass pricing “long overdue” ways to reduce its costs. The changes also include increasing the allowances for wheel alignment and alloy wheel repair, and paying for windshield glass moulding only when it is actually replaced.

ICBC says payments for glass repair and replacements have increased by 140 per cent over the last decade, from $40 million in 2008 to $96 million in 2017, as both the number of claims and their average cost have increased.

McCormack said the moulding replacement policy was imposed on repair shops by ICBC to save administration costs.

“They are suggesting the industry is doing something wrong by charging for new mouldings whether or not they are installed,” McCormack said. “But this is something ICBC put in place a decade ago because it wouldn’t or couldn’t discuss rate increases.”

Just Posted

South Surrey church members ‘praying for accused mother… for the whole process’

Lisa Batstone’s second-degree murder trial continues this week in B.C. Supreme Court

City will ask Fraser Health to remove pay parking at SMH, Surrey councillor says

Surrey’s new council has already made parking free on neighbouring city streets

Health and Technology District breaks ground on new building

City Centre 3 is the third of eight planned buildings: Lark Group

Spawning salmon returning to North Delta’s Cougar Creek

It’s early in the season, but the streamkeepers are hopeful it could be a good year for returns

Surrey White Rock Ringette Association ‘excited’ about world championships coming to Lower Mainland

Ringette Canada says the sport has reached record registration numbers

Winter weather hits parts of Canada

As some parts of the country brace for cold, parts of B.C. remain warmer than 10 C

Giants serve up major defeat to Pats at Langley Events Centre

On the ice, Vancouver G-Men wrap up home stand with a 10-4 win over Regina Friday night.

Canada’s health system commendable overall but barriers to care remain: UN

The United Nations says Canada’s health care system is “commendable” overall but vulnerable groups still face barriers to quality care.

Unique technology gives children with special needs more independent play

UVic’s CanAssist refined seven prototypes aided by $1.5M government contribution

Kelly Ellard’s boyfriend has statutory release revoked

Darwin Duane Dorozan had several parole infractions that found him ‘unmanageable’

New chair of Metro Vancouver board is Burnaby councillor

The 40-person board is made up of elected officials from 21 cities and one First Nation

Doctor’s note shouldn’t be required to prove you’re sick: poll

70% of Canadians oppose allowing employers to make you get a sick note

German-born B.C. man warns against a ‘yes’ vote on proportional representation

Agassiz realtor Freddy Marks says PR in his home country shows party elites can never be voted out

Fashion Fridays: 5 coats you need this winter!

Kim XO, lets you know the best online shopping tips during Fashion Fridays on the Black Press Media Network

Most Read

l -->