It’s the protection you don’t know you’re missing!
Traditional insurance isn’t enough. There are tales of woe throughout our blog section, and even some success stories related to people who did and didn’t have the right coverage, respectively; in any case, while the rules (and prices!) are all over the map, every province is congruent on a singular matter: you need insurance.
That’s where the line is drawn. Traditional insurance providers aim to compensate those they insure in the event of a loss. Their obligation is to leave the client right where they were immediately before the loss took place. Simple as that: no more, and no less. However, it behooves insurance companies to factor depreciation into the payment they provide after a vehicle loss; it does not, however, appeal much to the client.
The numbers surrounding depreciation may surprise some; this link from Carfax points out that a 5-year-old vehicle with an original MSRP of $40,000 could be worth closer to $16,000 at the end of those five years; it also calculates an immediate 10% depreciation within the first month of ownership. Imagine that: For every day you own a $40,000 vehicle that first (average calendar) month, it’s worth $133 less.
But should it be?
Is it worth less to you? Probably not. According to the best data available, there were 1.47 cars per household in Canada per a census in 2009. This means that for the majority of people, the property in the driveway is their only means of conveyance to and from the workplace.
Accidents can happen, and they can be tough pills to swallow. Especially if you’re underinsured.
You don’t have to be – that’s what Vehicle Replacement Coverage is for. Optiom doesn’t accept the traditional definition of “coverage” – think of it more like “committed protection.” We want you to live a more comfortable life knowing you have Optiom protection.
Simply put: Optiom’s new vehicle total loss benefit pays the difference between the market value of your vehicle at the time of a loss, and the MSRP (Manufacturer’s Suggested Retail Price) of a brand-new equivalent make and model vehicle. Instead of your replacement vehicle being a downgrade, you can often consider it an upgrade. Imagine coping with a total loss, then experiencing the hiccup between vehicles, only to come out with a maintained – or improved – lifestyle on the other side?
Because new vehicle replacement insurance is based on the newest make and model, you’re protected from the auto industry’s rate of inflation. This article in the Business Standard from earlier this year points to commodity cost inflation generating price hikes in the auto sector.
There is another type of coverage to address. Picture this: you sign on the dotted line at a Dealership. They’ll ask you if you’re interested in gap coverage. That’s where you’re covered for the remaining cost of a financed vehicle in the event of a total loss. It’s useful, but it’s a fraction of the coverage provided by true vehicle replacement insurance. It’s a good choice in some scenarios, but based on what we know about vehicle replacement coverage, the “Is gap insurance right for you?” segment of this article from canadianunderwriter.ca offers a stronger foregone conclusion in favour of minding the “gap”.
What if instead of compensating the remaining cost of a financed vehicle, you could enhance its value? Optiom goes beyond basic and even gap insurance to give affected drivers not only enough to cover what they may owe on their written-off vehicles but to fully replace them at the current MSRP. To be protected from additional surprises in an already-stressful situation, find an Optiom broker near you today and see what Optiom New Vehicle Replacement can do for you.