Owe Money to ICBC After an Insurance Breach? Here’s What You Should Know

If you’ve received a notice from ICBC saying you owe them money, you're not alone. Many drivers in British Columbia find themselves in this situation after ICBC claims they have breached their insurance policy. This can happen following a car accident, a claim, or a routine review of your policy.

These debts can be significant and stressful. The good news is that, in some cases, you may be able to negotiate a settlement. This article will help you understand what that means and how to take the next steps.

To understand what a breach of insurance is, see the previous blog post.

Why ICBC May Seek Repayment After a Breach

When ICBC determines that you breached your policy, they may:

• Deny your own claim for vehicle repairs or write-off value

• Bill you for the costs they covered, such as damages or injury settlements

• Initiate collection proceedings if the debt remains unpaid

• Pursue legal action to recover the money

This can lead to serious financial consequences, especially if the debt is large. However, in some circumstances, ICBC may be open to negotiation.

Can You Negotiate a Debt with ICBC?

Yes. ICBC may agree to a reduced settlement —particularly if you are experiencing financial hardship.

Here is how the process generally works:

1. Contact ICBC Collections
   Begin by explaining your situation.

2. Provide a Financial Statement
   ICBC may request details about your income, expenses, and assets to assess your ability to pay.

3. Receive a Settlement Proposal
   Based on your financial information, ICBC might offer a reduced lump sum, payment plan to settle the debt or combination of both.

4. Agree and Finalize the Terms
   If you accept, you will typically sign a settlement agreement and follow through with the agreed payment(s).

Potential Benefits of Negotiating with ICBC

• Reduction of the total amount owed

• Avoidance of court or formal collections

• A manageable repayment plan

• The ability to move forward without ongoing financial pressure

If ICBC has indicated you owe them a debt, seeking legal advice is strongly recommended. A lawyer can assess whether the initial breach was valid, may be able to challenge ICBC’s demand, or engage ICBC to seek debt-forgiveness on your behalf.

This article is provided for general informational purposes only and does not constitute legal advice. No legal relationship is formed by reading or relying on this content.

If you’d like to learn more about ICBC breaches or debt forgiveness, reach out to Zachary Dallman for a free consultation. Book or contact Zachary directly at zachary@zacharydallmanlaw.ca or 778.653.6163.