Off-road vehicles

Insuring your ATV

Once you’ve chosen your snowmobile or ATV insurance, you can add additional coverage. You will need to evaluate your needs to see whether such coverage would be useful.

Two popular endorsements

What is an endorsement?

An “endorsement” enhances your coverage. You add more extensive coverage to your policy, which thus provides protection.

You pay a supplement for this type of coverage. A number of endorsements are available on the snowmobile or ATV insurance market to meet your needs. The most popular is commonly known as replacement cost.

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.

Both products are sold mostly for new off-road vehicles. 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 off-road 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 off-road vehicle, your insurer does not take into account its depreciation if you added this coverage to your policy.

Accident Benefits (Endorsement 34).

If you die as a result of an accident with your off-road vehicle, this coverage pays out compensation to your family.