Over the course of our blog, we’ve spent a good deal of time reminding vehicle owners about the empowering possibilities of vehicle replacement insurance – or committed protection.

The key word in that sentence: Owners. This applies both before and during the financing.

But they surely are not the only ones who need vehicle protection.

What about lessees?

At Optiom, we have them covered, too.

Leasing is a significant partition of the automotive industry for many reasons; you most often enjoy the problem-free days of the vehicle because everything is under warranty; the savings on maintenance add up.

It’s also beneficial for depreciation avoidance: driving.ca put out an article showing vehicles that depreciate the least over four years when compared to their MSRP at purchase. Let’s look at two key takeaways from this piece. The first is a quote:

“…depreciations are inevitable, just like taxes…”

The second: it was good news when we hit an ‘all-time record for overall industry average retained value: 57% in 2020. That means your $30,000 car that you drove off the lot, on average, is worth a whopping $17,100. And that was good news.


For more teeth-grinding fun with depreciation, check out this depreciation calculator. There are ways to curb the rate of depreciation, but the impact might be minimal.

If the vehicle you’re driving is a few years older and you test drive something fresh and new, the technology shift can feel almost alien. The features list is long. This helps drive depreciation; the model year speaks volumes about what a vehicle can offer, with the newer editions stuffed to the gills with features and perks to improve the driver experience.

When you lease a vehicle, you’re typically operating it for two to four years and then working into a new contract. Since you as the lessee/driver, are usually driving the vehicle straight off the lot, you’re most likely to enjoy the problem-free days of the vehicle in question. Lessees also operate vehicles at the fore of the latest technologies. Seems great, right?

It certainly can be until the worst happens. Many drivers/lessees incur hefty penalties if a leased vehicle is returned to the dealership with after-market parts installed; you can be charged penalties and fees. That’s because the vehicle is considered “modified.” Not to mention paying for every scrape and ding when you trade your lease back in.

That’s why Optiom’s coverage options exist:

In the case of a leased vehicle suffering a partial loss where the insured is not at fault, Optiom’s Partial Loss OEM Benefit covers the difference between the cost of standard market parts and genuine new OEM replacement parts. This means you’ll be returning the vehicle to the dealership at the end of the term with specified-new OEM parts. Everyone wins – namely, you, with minimal to no damage-incurred fines from the dealership!

If it’s a total loss on a new vehicle under financing, New Vehicle Core Total Loss Coverage will help cover the remainder. This means the Optiom policy will pay out the difference between the vehicle’s market value at the time of the loss and the MSRP (Manufacturer’s Suggested Retail Price) of a brand-new equivalent model replacement vehicle.

How secure would that feel? It’s another reason to drive with Optiom.

Right now is the perfect time to turbocharge your car insurance!

Request a no-obligation quote, or quickly find a broker near you.

Right now is the perfect time to turbocharge your car insurance!

Request a no-obligation quote, or quickly find a broker near you.

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