Automobile

Insuring your car

Once you've chosen your basic coverage, you can add other coverages to your car insurance policy. Do you sometimes rent a car? Will you need a replacement vehicle in case of a loss? Do you store your vehicle during the winter? You will need to evaluate your needs to see whether you require additional coverage.

Four popular endorsements

What is an endorsement?

An "endorsement" enhances your coverage. When you choose to add an endorsement to your policy, the coverage provides  protection.

You pay a supplement for this type of coverage. A number of endorsements are available on the auto insurance market to meet your needs.

Replacement cost

Replacement cost coverage pays out an indemnity that does not factor in depreciation.

Two such products have been offered in Quebec since October 2010:

  • Replacement insurance
  • Endorsement 43 – Change to loss payment. This coverage offers several options. Ask your agent or broker about it.

Both products are sold mostly for new cars. They pay out an indemnity without depreciation in case of a total or partial loss.

What are the differences ?

Replacement insurance or Endorsement 43 for a new vehicle

Replacement Insurance Endorsement 43
Specified duration of up to eight years without renewal. Although there is a defined period (three to five years), it is renewed each year, at the same time as the policy.

Partial loss

Damaged parts are replaced by new original parts (up to an amount determined in the policy), even if the original parts can be repaired.

Partial loss (43A)

Damaged parts are replaced by new original parts only if they cannot be repaired.

Total loss (or theft) – new vehicle

Obligation to replace the vehicle as per the option chosen when the policy is purchased:

  1. Replace the vehicle by a new vehicle of equal or greater value from the dealer designated in the policy; or
  2. Receive payment of the indemnity and replace the vehicle from the dealer of your choice.

Note : If you replace your vehicle with a vehicle of a greater value, you pay the difference.

Total loss (or theft) – new vehicle (43E)

Choice to be made at the time the claim is made:

  1. Replace the vehicle by a new or used vehicle of equal, lower or greater value (from the dealer of your choice); or
  2. Not replace the vehicle (cash indemnity).

Note : If you replace your vehicle with a vehicle of a greater value, you pay the difference.

Following a claim

The policy ends and cannot be transferred to another vehicle. The insurer reimburses you the unused portion of the premium.

Following a claim

The policy does not automatically end. The new vehicle could be insured by the same policy.

Change to loss payment (Endorsement 43 A and E) or replacement cost.

In case of a total or partial loss of your new vehicle, your insurer does not take into account its depreciation if you added this coverage to your policy.

Short-term rental of a vehicle (Endorsement 20).

This coverage allows you to rent a vehicle for a specified period of time, should you lose the use of your vehicle following an accident.

Damage to vehicles not owned by the insured (Endorsement 27).

This endorsement provides coverage should you damage a vehicle that you've borrowed or rented in Canada or the United States. The coverage offered is often the same as that for your own vehicle. Most of the time, it's more advantageous than the insurance offered by the car rental company.

Accident Benefits (Endorsement 34).

If you die as a result of a car accident, this coverage pays out compensation to your family.

Does your
insurance cover an
accident that you
caused while
sneezing?

Does your insurance cover an accident that you caused while sneezing?

Yes, your insurance policy covers such damage if you purchased Comprehensive coverage (Section B).

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