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Replacement Insurance

Protect your investment in your automobile, motorcycle, ATV or RV

Replacement Insurance

Protect your investment in your automobile, motorcycle, ATV or RV

Good-as-new protection for your vehicle in case of loss or damage

Are you thinking of buying a vehicle? You’ve probably set up the insurance you need, but have you thought about getting Replacement Insurance as well? In case of loss or damage, this coverage will pay your claim with no deduction for depreciation of your vehicle.

Has the dealership already offered you this? Be aware that you can usually get a better deal if you purchase Replacement Insurance from your broker rather than a car dealer1.

An excellent complement to your auto insurance

Sold separately from your auto insurance policy, and as a complement to it, Replacement Insurance is available for automobiles, motorcycles, quads, snowmobiles and motorhomes, whether purchased or leased, new or used, or demonstrators. The advantages are well worth considering!

  • In case of damage, theft or total loss, your claim payment will not be reduced for depreciation of your vehicle.
  • In case of theft or total loss, you can go to any dealer you choose to replace your car, if you select this option on your contract. What's more, your deductible will be refunded, up to $2,500.
  • For partial losses, including broken windshields, the deductible will be refunded up to $250 or up to $500, depending on the option you choose. And if the replacement insurance is bought when the vehicle is new2, parts that cannot be repaired will be replaced with new original equipment manufacturer (OEM) parts.
  • Coverage of up to $75 per day (maximum $2,250 per occurrence) for a courtesy car.

Replacement Insurance or replacement cost endorsement?

Another type of protection, called replacement cost, is available as endorsement QEF 43 – Change to Loss Payment. But here are some of the advantages of Replacement Insurance compared with the replacement cost endorsement.

  • Replacement Insurance is available for both new and used vehicles (including demonstrators2), whereas the replacement cost endorsement is only for new vehicles.
  • The premium is locked in for the entire term of the Replacement Insurance policy, which is up to seven years for automobiles or up to five years for recreational vehicles, and it is not dependent on your claims record.
  • In the event of partial loss, Replacement Insurance stays in force, unlike the endorsement, which may be terminated after two claims.

Buy from your broker for better value1

Buy Replacement Insurance from a licensed home and auto insurance professional. Here are some of the reasons for dealing with a broker:

  • You’re likely to pay less than you would if you bought it from a car dealership;
  • You only have to contact one person if you have a claim.

Call your broker today to find out more about Replacement Insurance!

1 “Assurance de remplacement : l’Autorité durcira le ton” (AMF announces strict regulations on replacement insurance). Journal de l’Assurance, May 2014.

2 Demo vehicles with no more than 15,000 km on the odometer are considered new for purposes of Replacement Insurance.

Replacement Insurance is offered through CIME Cabinet d’assurances inc. Certain conditions, limitations and exclusions apply. Other types of similar protection are also available. Talk to an insurance broker for advice on the coverage that best meets your needs. This website provides general information only. Your insurance policy contract takes precedence at all times. Please consult your policy for a complete description of coverage and exclusions.