REPLACEMENT INSURANCE OR ENDORSEMENT 43E?
The 1st October 2010, the replacement guarantee, sold by dealerships and brokers, was replaced by replacement insurance. Endorsement 43E – Change to loss payment – is still in effect. If you desire replacement cost coverage for your vehicle, you can choose either of these two products.
Both products have a number of similarities:
- They complete your automobile insurance policy. Without the initial policy you cannot get replacement insurance or Endorsement 43.
- They are both insurance products offered by insurance companies.
- They pay out an indemnity without depreciation in the event of loss (total or partial).
Both products also have their differences:
|QPF # 5 – Replacement insurance||Endorsement 43E
Change to loss payment
|Determined duration for up to 7 years without renewal. Without underwriting rules and renewal conditions.||While duration is defined (1 to 6 years) it renews yearly at the same time as the policy subject to several conditions.|
|Attached to any primary insurer.||Attached to the same primary insurer.|
|Offered for new and used vehicles.||Offered for new vehicles.|
|Persons at risk are admissible.||Persons at risk are not admissible.|
|Vehicles at risk are admissible.||Vehicles at risk are not admissible.|
|Offered by brokers and dealers.||Offered by insurers or brokers.|
|Partial losses||Partial losses|
|Non repairable damaged parts are replaced with new original parts.||Damages parts are replaced by new but not necessarily original parts. Take note that if the parts are not available, the insurer will deduct depreciation on the parts.|
|Total Loss (or theft) New Vehicle||Total Loss (or theft) New Vehicle|
|Obligation to replace the vehicle according to the selected chosen option when the policy was purchased:||Choice to be made at the time of the loss:|
|a) Replace the vehicle with a new one of equal or superior value through the named dealer; or||a) Replace the vehicle with a new or a used one of equal, inferior, or superior value (at the dealer of your choice); or|
|b) Receive and indemnity and replace at the dealer of your choice.*The value will be calculated on the calendar year model.Note: If you replace the vehicle with a superior value, you will have to disburse the difference.||b) Do not replace the vehicle (Cash settlement. The value will be negotiated by the insurer.)* Previous year if available and calendar year if not available.Note: If you replace the vehicle with a superior value, you will have to disburse the difference.|
|Following a claim||Following a claim|
|The policy ends in the case of total loss only. The insurer reimburses you the unearned premium on a prorata basis. This policyis not transferable to anothervehicle.||The policy does not end automatically. The new vehicle could be covered by the same policy. But at renewal, may not be available according to the conditions.|
|No deductible to pay.Reimburse the deductible up to $2,500 for a total loss.Reimburse the deductible up to $250 for a partial loss.||Deductible to be disbursed as per the amount chosen on your policy.|
|Allowance for a courtesy vehicle $75.day/$2,250.|
|Classes 33-35-36 admissible.||Not admissible.|
|Cancellation on a prorata basis.||Cancellation on a short-rate basis.|
|*Average cost with QPF#5 with a broker : $928.00
*Average cost with dealership: $1,555.00
*Source: L’AMF and Journal de l’assurance
You would like to get a quote for a replacement insurance or any other vehicle? Don’t wait any longer, talk to an Assurancia broker near you.
As well, our Claims specialist certification guarantees constant, regular follow-ups after a claim, and helps speed up the process to resolve the case.
This certification is exclusive to Assurancia brokers!