Automotive

Replacement cost insurance?

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  • Feb 2nd, 2009 9:28 am
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Mar 7, 2008
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Replacement cost insurance?

I bought my 09 Vibe in Oct and insurance company allow you to purchase replacement insurance within 120days of purchase... And I bought in today~

with my previous two cars, I bought them too, but it has proven to be waste of money... anyone think so? Is not exactly cheap~ about $65 just for that option....
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Sep 2, 2004
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By replacement insurance, do you mean removing depreciation? I think that's what you're talking about, otherwise known as a 43 endorsement (OPCF 43, S.E.F. 43, etc.)

Usually they are good from 24-30 months from purchase of a new vehicle. If you get in a major accident and it's a writeoff, they will reimburse you the full new value. Or when you get it repaired, they will use new parts rather than used/rebuilt/etc.

It's hard to say if it's worth it or not. $65 a year more? At that price I would seriously consider it. Cars generally depreciate a lot in the first couple years and the difference you get back after a writeoff vs. what it cost you new could be pretty substantial.
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Nov 23, 2005
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With Belair, they gave us that at no charge. They will give you 100% of the purchase price of the vehicle if the vehicle is written off within first 18 months.
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Jan 8, 2009
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GTA
Definitely worth the money!

You are already paying 1k or more in insurance so what's another 50-100/yr for added protection. You don't feel the importance of this or insurance in general until you are in need.

For 65/yr you can be sure that if there is a total loss, you will get the full purchase price of the vehicle rather than it's depreciated value. Like capt said, usually good up to 30 months (Td has up to 5 years)

If you don't get this coverage, it could end up costing you a few thousand.
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All posts on this forum are for information purpose only and can't replace your policy contract. Please contact your own broker, agent or company before acting on my suggestions. There is more to insurance than just price!
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boyoflondon wrote: With Belair, they gave us that at no charge. They will give you 100% of the purchase price of the vehicle if the vehicle is written off within first 18 months.
Well, it's part of the premium. I can turn around and say that you can save another 50-100/yr if you remove that coverage!

So depends how you look at it...
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All posts on this forum are for information purpose only and can't replace your policy contract. Please contact your own broker, agent or company before acting on my suggestions. There is more to insurance than just price!
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Insurance-Broker wrote: Well, it's part of the premium. I can turn around and say that you can save another 50-100/yr if you remove that coverage!

So depends how you look at it...

So you are trying to tell me that I am paying lets say $50-100 more a year for an option that I cant technically use any more? Car was purchased 2007 ... 18 months have expired since then ... so why am I still "paying" for this insurance if I technically can't claim it if something was to happen.

Then again, I do have 0 liability to which you could also say that it is part of the premium, and that I am paying more .. sure!

HOWEVER, pricing out my policy with a number of different companies I get quote of at least a THOUSAND and more ...


PS. In your little disclaimer there ... it is "adviCe", not 'advise' ;)
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boyoflondon wrote: So you are trying to tell me that I am paying lets say $50-100 more a year for an option that I cant technically use any more? Car was purchased 2007 ... 18 months have expired since then ... so why am I still "paying" for this insurance if I technically can't claim it if something was to happen.
Well, you are usually covered on that until renewal but you can't buy it on a new policy, if the 30/24/18 month (as in your case) time frame has passed.
boyoflondon wrote: Then again, I do have 0 liability to which you could also say that it is part of the premium, and that I am paying more .. sure!
I have no clue what you mean by that. This isn't a credit card.

Oh wait, may be you were referring to the deductible. You would be pleased to know that it is a part of your premium so in other words, if you call them to change it to say $500, your price would come down.

boyoflondon wrote: HOWEVER, pricing out my policy with a number of different companies I get quote of at least a THOUSAND and more ...
Every insurance company has a different pricing model but it shouldn't be THOUSANDS more unless you were calling all "high risk" insurers.
boyoflondon wrote:
PS. In your little disclaimer there ... it is "advieCe", not 'advise' ;)

Good to know that you read fine prints. Thanks for your advice ;)
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All posts on this forum are for information purpose only and can't replace your policy contract. Please contact your own broker, agent or company before acting on my suggestions. There is more to insurance than just price!
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Its definately worth the extra premium..most companies charge an average 45-50/year for it. I have had a couple of clients over the years that have had a total loss of their vehicle and got pretty darn close to what they paid. You have to be the original owner of such vehicle to have this coverage. Also check with your company as some have a limit to how many klms are allowed on new/demo vehicles in order to qualify. ie. if you just bought a brand new vehicle but it has a high number of klms on it, it may not be able to have the waiver of depreciation endorsment added to the policy. Length of time allowed to keep the coverage varies company to company as well, some are 24 months only.
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Companies such as Kingsway, don't even offer this coverage.
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[OP]
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COSMIC5 wrote: Its definately worth the extra premium..most companies charge an average 45-50/year for it. I have had a couple of clients over the years that have had a total loss of their vehicle and got pretty darn close to what they paid. You have to be the original owner of such vehicle to have this coverage. Also check with your company as some have a limit to how many klms are allowed on new/demo vehicles in order to qualify. ie. if you just bought a brand new vehicle but it has a high number of klms on it, it may not be able to have the waiver of depreciation endorsment added to the policy. Length of time allowed to keep the coverage varies company to company as well, some are 24 months only.
My car comes with 12kms upon pickup! hehe...
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Sep 29, 2008
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Markham
I look for this on my insurance, Mine is called 43a. I have used it when my Volvo was written off. I actually made about 12,000.00 on my car (It was a lease) and they paid me the cost of a new car minus the buy back. My car was just over two years old, I have heard that some companies are extending this to 3 years. This is worth every cent, I think I paid $10.00 for this endorsement. THIS IS WORTH THE MONEY
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matinee wrote: I look for this on my insurance, Mine is called 43a. I have used it when my Volvo was written off. I actually made about 12,000.00 on my car (It was a lease) and they paid me the cost of a new car minus the buy back. My car was just over two years old, I have heard that some companies are extending this to 3 years. This is worth every cent, I think I paid $10.00 for this endorsement. THIS IS WORTH THE MONEY
+1,

Btw, for a financed/owned vehicle it will be listed as 43 and 43a for a leased car!
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All posts on this forum are for information purpose only and can't replace your policy contract. Please contact your own broker, agent or company before acting on my suggestions. There is more to insurance than just price!
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THINKPADT61 wrote: My car comes with 12kms upon pickup! hehe...
Nice!
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