VEHICLE REPLACEMENT INSURANCE

When the Unexpected Happens You Can Rely on Optiom.

If your new or pre-owned vehicle is declared a total loss, the cost to replace it can be much higher than expected — and the disruption to your daily life significant.

Vehicle Replacement Insurance is designed to help bridge the difference simply and quickly, so you’re better prepared for when the unexpected occurs.

The Optiom Gap
Average shortfall between primary auto insurer's payout and replacement cost.
+$7,400
Primary auto insurer's payout after 18 months $21,600
With Optiom — replacement value $29,000
#1 in Canada
Specialty Vehicle Insurance Provider
600,000+ Policies
Sold across Canada
New & Pre-Owned
All vehicle types covered
Trusted Nationwide
Available through licensed brokers
Why It Matters

A total loss shouldn’t cost you your next vehicle.

If your new or pre-owned vehicle is declared a total loss, the cost to replace it can be much higher than expected — and the disruption to your daily life significant.

When your primary auto insurer pays out market value at the time of loss, that number is almost always less than what a comparable replacement vehicle actually costs today. Vehicle Replacement Insurance is designed to help bridge the difference — simply and quickly — so you’re better prepared for when the unexpected occurs.

An Interesting but Alarming Statistic

According to the Government of Canada, an estimated 90,000 cars are stolen annually — that’s one car every six minutes.

600K+
Policies Sold
100+
Employees
2008
Founded in BC
Driver reviewing paperwork after a vehicle write-off
Canada's Largest Provider

Get Covered Today

Protect your next vehicle before you need to replace it.

Vehicle Replacement Insurance is a separate policy that works alongside your primary auto insurance. Request a quote from Optiom, or connect with a licensed broker who offers our coverage.

Request A Quote Find A Broker

 

How VRI Works

A benefit built for both new and pre-owned vehicles.

In the event of a total loss, Optiom pays the difference between what your primary auto insurer pays out and what a comparable replacement actually costs today — delivered as a credit at the original dealership toward your next vehicle.

For New Vehicles

New Vehicle Replacement

Optiom pays the difference between the market value of your vehicle at the time of loss and the MSRP of a brand-new equivalent model. The benefit is applied as a credit at your original dealership toward your replacement vehicle.

  • ✓Current and prior year models with 25,000 km or less at time of purchase
  • ✓Maximum MSRP of $300,000 before taxes
  • ✓Eligible for up to 84 months of coverage

Maximum Benefit

Up to $100,000

For Pre-Owned Vehicles

Pre-Owned Total Loss Benefit

Optiom pays the difference between the market value of your vehicle at the time of loss and its value at the time your policy started. The benefit is applied as a credit at your original dealership toward your replacement vehicle.

  • ✓Vehicle models up to 10 years old, regardless of odometer reading
  • ✓Maximum vehicle value of $200,000 before taxes
  • ✓1–5 years: up to 60 months · 6–10 years: up to 36 months

Maximum Benefit

Up to $80,000

Program Eligibility

Is your vehicle eligible?

These are the conditions your vehicle needs to meet to be covered. The first set applies to both New and Pre-Owned vehicles. The other two are specific to how you’re buying.

All Vehicles

  • 1

    You can’t drive more than 50,000 km per year on average

  • 2
    You must maintain collision and comprehensive coverage with your primary auto insurer through the term of the policy
  • 3

    Maximum Gross Vehicle Weight (GVW) of 6,500 kg

New Vehicles

  • 1
    Current and prior year models with 25,000 km or less at time of policy purchase
  • 2
    Maximum MSRP (manufacturer’s suggested retail price) of $300,000 before taxes
  • 3
    Eligible for up to 84 months of coverage

Pre-Owned Vehicles

  • 1

    Models up to 10 years old, regardless of odometer reading

  • 2

    Maximum vehicle value of $200,000 before taxes

  • 3

    1–5 years: up to 60 months · 6–10 years: up to 36 months

Deductible Reimbursement

If you have to pay a deductible to your primary auto insurer in the event of a total loss, Optiom may reimburse you up to $500. Not available in Alberta and Manitoba.

$500

Max Reimbursement

Bamboo Premium Financing

Flexible Payment Options

Pay monthly with Bamboo Premium Financing

Don’t want to pay your Optiom policy up front? You don’t have to. Through our partnership with Bamboo Premium Financing, you can spread the cost of your coverage into affordable monthly payments — with fast approvals, fair rates, and a friendly Canadian team behind every application.

  • Simple monthly payment plan
  • Fast approval, minimal paperwork
  • Available on all Optiom policies

Financing subject to Bamboo Premium Financing approval and terms.

How the Benefit Grows Over Time

Your vehicle loses value. Your coverage doesn’t.

The moment you drive off the lot, your vehicle starts losing value — but the cost to replace it with a comparable one stays close to what you paid. As market value falls, the Optiom replacement benefit grows to cover the difference. Here’s what that looks like on a typical pre-owned vehicle.

PRE-OWNED TOTAL LOSS BENEFIT — EXAMPLE
A $40,000 pre-owned vehicle over 5 years
Your vehicle's market value at time of loss Cost to replace it with a comparable vehicle Your Optiom replacement benefit
Vehicle value drops from $40,000 to $26,000 over 5 years while replacement cost stays near $40,000. Optiom covers the widening difference.
Example only. Actual values vary by vehicle, market conditions, and policy terms.

$60,000

Pre-owned vehicles 6–10 model years old, in addition to your primary auto insurer payout

$80,000

Pre-owned vehicles up to 5 model years old with a value between $150,001–$200,000

$20,000

Pre-owned vehicles 6–10 model years old

All benefits are paid in addition to the primary auto insurer’s payout.

PDF
Take It With You
Download the Vehicle Replacement Insurance brochure
Everything in one printable PDF — how the coverage works, the payout examples for new and pre-owned vehicles, and the eligibility rules.

Common Questions

Straight Answers.

What is Vehicle Replacement Insurance and what does it cover?

Vehicle Replacement Insurance (VRI) is an add-on policy that pays out on top of your standard auto insurance when your vehicle is declared a total loss. If your primary auto insurer’s payout falls short of what a comparable replacement vehicle actually costs today, Optiom pays the difference — up to your policy’s maximum benefit. The payout is delivered as a credit at your original dealership toward your next vehicle.

Your primary auto insurance pays out the market value of your vehicle at the time of loss — which is almost always less than what a comparable new or pre-owned replacement actually costs today. VRI is designed to bridge that difference. It doesn’t replace your primary auto insurance; it works alongside it. You must maintain collision and comprehensive coverage with your primary auto insurer for the term of the VRI policy.

You file your total loss claim with your primary auto insurer as you normally would. Once that claim is settled, contact Optiom to activate your VRI benefit — our in-house claims team coordinates the payout directly with your original dealership as a credit toward your replacement vehicle. If you had to pay a deductible to your primary auto insurer, Optiom may also reimburse up to $500 (not available in Alberta and Manitoba).

Yes. New vehicles are eligible if they’re current or prior year models with 25,000 km or less at the time of purchase, with a maximum MSRP of $300,000 before taxes — coverage runs up to 84 months. Pre-owned vehicles up to 10 years old qualify regardless of odometer reading, with a maximum value of $200,000 before taxes — coverage runs up to 60 months for 1–5 year old vehicles, or 36 months for 6–10 year old vehicles.

Yes. VRI is available whether you own your vehicle outright, are financing it, or are leasing it. The eligibility requirements are the same across all three — you just need to maintain collision and comprehensive coverage with your primary auto insurer, and stay under the annual driving limit of 50,000 km on average.

Pricing depends on your vehicle’s value, model year, and the length of coverage you choose. VRI is sold through licensed insurance brokers across Canada — the fastest way to get an accurate quote is to request one online or find a broker near you. Availability, terms, and pricing vary by province.

If you sell your vehicle before the end of your VRI term, coverage ends with your ownership of that vehicle. VRI is tied to a specific vehicle and doesn’t transfer to a replacement — you’d purchase a new VRI policy on your next vehicle. Contact Optiom or your broker to discuss your options.

Also from Optiom

More Ways to Protect Your Vehicle

Mechanical Breakdown Protection

Covers the cost of repairing failed mechanical components after your manufacturer’s warranty expires.

Tire & Rim Protection

Covers repair or replacement costs for tires and rims damaged by potholes and everyday road hazards.

Guaranteed Asset Protection

Covers the shortfall between your primary auto insurer’s payout and what you still owe on your loan or lease after a total loss.

Appearance Protection

Protects your vehicle’s interior and exterior finish from everyday wear — stains, scuffs, minor dents, and paint damage.

For Brokers & Agents

Add Vehicle Replacement Insurance to Your Book of Business.

Are you a licensed insurance broker or agent? Partner with Optiom to offer Vehicle Replacement Insurance to your clients — with the underwriting, servicing, and claims handled by us. Here’s what you get:

Dedicated Dealer Rep

Every partner dealership is paired with a dedicated Optiom representative for training, product questions, and day-to-day support.

F&I Training & Materials

Your team receives full product training, presentation frameworks, and customer-facing collateral to integrate GAP into every delivery.

Claims Handled by Us

When a customer files, Optiom’s in-house claims team manages the process end-to-end and coordinates with everyone involved — the customer, their lender, and your dealership when applicable.