What insurance coverage do you need when you buy a new car?
Have you ever seen footage or pictures of someone who has just purchased a brand new car and within a few short hours the vehicle is written off in an accident? The news and media outlets like to tell this exact story of celebrities who have purchased a brand new exotic car and within an instant, their new ride might be on its way to the scrap yard.
If you are lucky enough to be buying an exotic car (or if you are purchasing a non-exotic car) you will want to purchase certain insurance coverage to protect the value of your new car in the event of an accident. This coverage can be purchased if the car is bought outright, financed or leased.
Drum roll please…. If you want to protect your brand new car in Ontario you should be purchasing….
OPCF 43 Removal of Depreciation or sometimes called Limited Waiver Coverage
This is an optional insurance coverage that consumers can purchase. The coverage is available for pleasure use and light commercial usage vehicles that are sold as NEW. You can also purchase this coverage if the vehicle is sold as a DEMO. However the DEMO vehicle must have less than 5000 kms at the time of the sale.
When you drive a brand new vehicle off the lot, the vehicle will automatically depreciate. If the vehicle is involved in an accident and it is written off (the vehicle is not fixable or the cost to fix it is more than the value), would you want a cheque from your insurance company for the depreciated value? No of course not, you would want to have a cheque that did not deduct the depreciation!
In the event of an accident your insurance company will pay the lowest of the following amounts:
These amounts include all applicable taxes.
This is a very important coverage to purchase because it will secure the value of your vehicle if it is totalled or written off in an accident. The removal of depreciation coverage can save you thousands of dollars.
Call us today 1-877-941-2266 to get a quote on your new car. Our brokers are waiting for your call. We can help you determine the coverages that will protect the value of your car, the coverages to protect your family all at the right price.
