What is Replacement Vehicle Insurance?

On average, a car or truck loses half its value within the first 4 years…


(Other supplemental coverages, sometimes offered by primary insurers, typically cover your new vehicle investment for up to 3 years.) These coverages usually only insure your loss up to the purchase price of your vehicle (net of any manufacturer’s or dealer’s discounts offered at the time). With the majority of Canadians keeping their vehicles for at least 5 years, these other coverages provide no replacement protection when you are most at risk from loss.

With Optiom Replacement Vehicle Insurance, you are eligible for up to 7 years of coverage on New Vehicles, and up to 5 years of coverage on Used Vehicles. Your premium is locked in at policy inception, and you are guaranteed no increases or re-qualification related to your vehicle for the period it is eligible and you maintain Optiom coverage.

The core Total Loss Benefit contributes to the cost of an equivalent model replacement vehicle if your vehicle is a total loss and is written off by your primary auto insurer. Any combination of additional coverages can be added onto the base benefit. Your coverage is completely customizable, allowing you to create your own personal insurance coverage that best suits you.

So, what have you got to lose? Answer: A lot of dollars if your vehicle is involved in a serious accident and written off as a total loss. Regardless of who is at fault, your primary auto insurance policy typically only pays you the depreciated market value of your vehicle. Will you have enough money to replace your vehicle?

Your primary insurer may not cover the amount owing on your vehicle loan or lease, not to mention providing you with no equity towards your replacement vehicle. Optiom Replacement Vehicle Insurance ensures that you don’t lose your financial investment along with your car.