When you buy or lease a vehicle, you have several options. To better meet your insurance needs, certain optional coverages are offered. Among all the products available, some allow you to protect the value of your vehicle from depreciation in case of loss. These are Change to indemnity (Q.E.F. 43) and Replacement Cost Insurance (Q.P.F. 5).
Change to indemnity - QEF 43
When you purchase a new vehicle, you have the option of adding the change to indemnity endorsement to your insurance policy. This endorsement offers you compensation without depreciation in the event of a total loss. Replacement cost is a protection offered over a defined period of time, which, depending on your insurer, can range from 3 to 5 years. In the event of a partial loss, endorsement 43a allows you to replace damaged parts with new original parts if they cannot be repaired. In the event of a total loss of your vehicle, the coverage allows you to replace it with a new vehicle having the same features, equipment and accessories as your vehicle. You can also accept a cash indemnity. This indemnity will be equivalent to the price you paid for your vehicle.
Replacement insurance - QPF 5
Although it is similar to the change to indemnity endorsement, replacement insurance has a few differences that should be taken into consideration. First, replacement cost insurance is a separate insurance contract from your primary insurer and can be spread over a period of 7 years. The benefit is calculated based on the amount received by your primary insurer. This product does not offer the possibility of receiving the indemnity in cash, you will have to replace your vehicle. One of the advantages of this product is that it can also be offered for used vehicles. Replacement insurance usually comes with several benefits such as the reimbursement of your deductibles in case of partial and total loss as well as an amount for a courtesy vehicle.
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