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

Chilliwack gymnast to compete in Pan American Championships

Canadian national teamer Zachary Clay travels to Peru in September for international competition.

Harv Westeringh announces run for Chilliwack council

The local realtor/builder has strong interest in municipal issues and fiscal responsibility

Night patrol on Chilliwack waters leads DFO to seize 48 sockeye and harbour seal from poachers

Charges pending after two poachers arrested for fishing at night

Highway 7 down to one-lane alternating as crews fight Mt. Hicks wildfire

150-hectare blaze prompted closure of a provincial park

Drug-checking started as pilot project in Chilliwack to test for fentanyl

Substance is mixed with water on test strip, and result is revealed in minutes

Average Canadian family spends 43% of income on taxes: study

Fraser Institute’s consumer report shows taxes accounting for larger chunk of income each year

Get involved in the Great Canadian Bumble Bee Count

Environmental organization develops app to help with the nationwide count

Pesticides linked to bee deaths will be phased out in Canada, sources say

Neonicotinoids, or neonics, are a class of pesticides used by farmers and hobby gardeners alike

Wildfire smoke blankets B.C. and Alberta, prompting air quality advisories

About 25 new wildfires were sparked between Monday morning and midday Tuesday

Big bucks for painting of small B.C. town

A 1965 painting of Ashcroft by E. J. Hughes exceeded its pre-auction estimate at a recent sale.

UPDATE: ‘Faint fuel odour,’ ‘sheen’ seen on Fraser River beach after tug carrying diesel sinks

Tugboat carrying up to 22,000 litres of diesel sinks in Fraser River Tuesday morning

Column: Mother orca’s display of grief sends powerful message

The grief of this orca mother may not be visible anymore, but we must not forget.

Seven people with ties to Red Scorpions gang arrested in B.C. drug bust

Delta police have secured 94 charges against seven people, including drug and firearm offences

Most Read