Is new car replacement insurance worth it

Picture: is now car replacement insurance worth it

Replacement insurance: what is it?

You've heard about it here and there, but what exactly is replacement insurance? 

Your basic insurance (compulsory) covers the real value of your vehicle in the event of an accident or breakage. However, over time, your car loses value.

This is where replacement insurance, offered by your damage insurance broker, comes into play! In addition to your car insurance, it fills the gap between the price paid and the depreciated value of your car during your claims. Focus on its advantages...

Read Also: Cancel the car insurance

5 good reasons to adopt replacement insurance:

The benefits are many! This separate contract from your car insurance is very often the ideal complement for maximized coverage.

1) Replacement insurance allows you to replace your damaged vehicle with a new vehicle of the current year.

2) Your car's equipment and accessories can (and must!) appear on your replacement insurance contract. Thus, if necessary, these will be protected and replaced by a value equivalent to your initial purchase. (Some restrictions apply.)

3) Victim of theft or accident? Replacement insurance will reimburse the basic deductible charged by your auto insurer — a reimbursement of $250 or $500, depending on the option chosen, for a partial loss and up to $2,500 in the event of a total loss.

4) The price of your contract is determined at the time of purchase according to its duration (between one and seven years) and the value of the vehicle, before tax, and remains fixed.

You can then terminate your insurance contract at any time, for a termination fee. For its part, the insurer cannot terminate your contract — even if you have claimed several losses — unless you fail to pay.

5) All damaged and non-repairable parts will be replaced with new original manufacturer parts only.

Replacement insurance in 3 easy steps:

1) Shop for your coverage. To do this, choose a damage insurance broker rather than your car dealership. Familiar with the various insurance products, he will be able to advise you better and explain the options relating to your needs and your situation.

2) Subscribe to your tailor-made insurance. A contract separate from your basic auto insurance is then signed, including the details of the equipment and accessories included in your vehicle.

3) Take advantage of your new protection as many times as you need. In the event of a claim, this coverage will pay — in accordance with the terms of your contract — the difference between the original value of your vehicle and its market value.

Is this insurance only for new car owners?

No way! Replacement insurance is not only for owners of new cars, but also for owners of

-Used cars

–ATVs and snowmobiles

-Demonstration cars

-And even some high-end vehicles

What about replacement cost insurance?

You have probably already been told about this insurance. Only intended for new vehicles, it can be added to your basic car insurance. Unlike replacement insurance, it therefore does not cover other types of vehicles, such as used or recreational vehicles.

In the event of compensation, it ensures the replacement of your car at the dealership of your choice or offers you cash compensation. Interestingly, it will cover additions to your car (a stereo, for example), even if they don't appear on the original contract.

On the other hand, the cost of the contract is not fixed price. It increases each year, compared to that of replacement insurance, which remains unchanged.


Replacement or new value: compare to see!

In order to see more clearly about the replacement insurance offer, here is a table putting into perspective the differences between replacement insurance and the replacement cost endorsement.

Replacement insurance, in a nutshell

Why choose replacement insurance?

-To offer additional protection to your used vehicle with the only insurance offering you this possibility.

-To take advantage of advantageous coverage for your new car or your recreational vehicle.

-To benefit from a refund of the initial value of your vehicle in the event of a claim.

-To benefit from a fixed premium throughout your coverage.

-To have the freedom to terminate your contract at any time.

Paré Assurances, to hit the road with peace of mind

Replacement insurance arouses your interest? 

Our damage insurance experts can help you determine which coverage will be the most.

Appropriate for your situation. For tailored advice and a well-protected vehicle, contact us!

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