New Car Replacement Insurance: Say Goodbye to Depreciation.

What Is New Car Replacement Insurance?

Accidents can be stressful, especially when wondering if your car will be a write-off. Your primary insurance settlement will be for the depreciated vehicle value, not the full replacement cost. The average vehicle depreciates 10-15% annually, so a write-off could mean the difference comes out of your pocket. But with new car replacement insurance, you can say goodbye to depreciation!

With our vehicle replacement insurance coverage, you can get a new vehicle or, in some cases, a cash settlement! It doesn’t tie you to a specific dealership or vehicle choice and has no requirement to replace clauses. Our policies are underwritten by an A-rated Canadian insurance company, ensuring maximum protection for your investment. Compare our rates against ICBC replacement insurance and costly dealer fees and save.

Get a quote for coverage now and avoid dealer referral fees of up to $1000!

Vehicles in British Columbia and Alberta up to five model years old are eligible.

Our Replacement Value Insurance Provides:

Add These Benefits to Your Coverage

Better Car Replacement Insurance

Buying a used vehicle? If the car is 2-10 years old, you could qualify for up to 5 years of Better Car Replacement coverage.

Your primary auto insurance typically covers only the depreciated value of your vehicle in the event of a total loss, regardless of fault. A Better Car Replacement Insurance policy compensates you for the difference between your depreciated settlement and your vehicle’s value when you purchased the policy. Additionally, you get an increase in your vehicle’s value by an extra 5% for each year of the policy term.

Get a car with the exact purchase price as your current vehicle, plus up to an additional 25% after a total loss!

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How Much Will Your Vehicle Depreciate?

The average vehicle depreciates 10-15% per year. Use this handy calculator to see how much you can save if you write off your vehicle.

Frequently Asked Questions

Is a Guaranteed Replacement Cost Endorsement the Same?

A replacement cost endorsement is not the same. A guaranteed replacement cost endorsement is only available on brand-new vehicles through your primary insurer. Coverage can increase in cost significantly year after year. Your primary insurer can also end it after several minor claims or not renew it for many reasons. If you switch insurers to save premiums, you lose the coverage.

In comparison, replacement cost insurance is valid for a fixed term of up to seven years. The premium is one price for the entire term, and it can be bought for new or used vehicles.

Do I qualify for vehicle replacement coverage?

You can purchase our new car replacement insurance in Canada if you live in British Columbia or Alberta. Vehicles up to 5 model years old qualify.

What is a Replacement Cost or Value Insurance policy?

Replacement cost, also known as replacement value, is an add-on insurance coverage that will help to replace a written-off or stolen vehicle with a brand-new one that is identical or very similar. The core idea of a replacement value policy is to provide a brand-new vehicle that is close to the original without the insured being out of pocket for depreciation. The policy underwriter considers the current price of the same or similar brand-new model when determining replacement cost or value insurance settlements.

How does vehicle replacement cost insurance work?

In the event of a write-off, your primary insurance settlement will pay the vehicle’s Actual Cash Value (ACV). A new vehicle can lose up to 50% of its value in four years. The policy helps protect your significant cash investment from this depreciation. It covers the difference between the cost of a new vehicle and the payout from your primary insurer, up to $60,000.

What else does new car replacement cost auto insurance include?

The policy includes deductible reimbursement of up to $500. In addition, you can add OEM Parts coverage. In an accident, this gets you original parts instead of cheap third-party ones. The plus package includes rental car reimbursement, key fob replacement, and deductible payback. Note: The vehicle does not have to be a write-off for OEM parts and plus-package coverage to take effect. You can also add diminished value coverage. If your car has significant repairs after an accident, it loses its resale value. This add-on will give you a cash settlement for 10% of the vehicle’s value.

The cost stays the same for the duration of the contract, and the coverage period can last up to seven years. You can cancel it at any time for a proportional refund.

Can I get a payment plan for replacement value car insurance?

Yes. Depending on your policy length, you can choose up to a 60-month plan. You can pay by credit card or direct debit from your account.

When do I need new vehicle replacement insurance?

If you have a loan or lease on your vehicle you will need to keep making those payments even if it is a write-off. Your primary car insurance likely will not cover any additional payments owed on your vehicle.

Your primary insurance coverage won’t cover the replacement value of your vehicle. If you cannot afford to replace your car or pay for the difference in the cost of a new one, our coverage is for you.

What is the difference between gap insurance and new car replacement?

If your car is totalled, gap insurance will ensure you don’t need to pay for a car you no longer have. It pays the difference between your remaining car loan balance and the amount paid (the “gap”) from your primary insurance provider. Gap insurance won’t pay for a new car.

Replacement cost car insurance coverage pays to replace your vehicle with a new one of the same make and model. With our replacement insurance, you can add loan protection coverage that will act like GAP insurance, covering any remaining loan balance up to a certain amount.