Car on a road full of dangerous bends

Benefits of Purchasing Replacement Cost Insurance

If you own a vehicle that is 5 years old or newer, it is important to consider a Replacement Cost insurance policy. Newer model vehicles tend to depreciate quickly, in fact, once you drive a new car off the dealer lot, the value can depreciate by up to 11 percent. This means that if you have purchased a vehicle for $25,000 the moment you leave to dealership your car can depreciate by as much as $2,750.

New Car Replacement

Car insurance companies take this depreciation into account when they reimburse you after a total loss. Usually, insurance companies will pay out the cash value of the vehicle prior to the accident. However, this calculation will be based on the depreciated value of the car, which means your insurance pay out may be considerably lower than what you purchased the vehicle for.This is when having replacement cost insurance would be valuable, as the policy would act to protect your financial interest in the vehicle. If you have this insurance and your vehicle is declared a total loss, it will be replaced by a new one with the same features, equipment and accessories. Having a replacement cost policy in place would allow you to receive the difference between the insurer’s settlement and the price of another brand new vehicle of the same make and model.

It is important to be informed of your insurance options in order to make the best decision for your requirements. can help as we make sure that after a total loss accident, regardless of fault, you get the same vehicle but brand new from the current model year. Unlike most insurers,’s replacement cost insurance policies are not affected by claims history, so all BC drivers qualify and pay the same rates.

Contact a broker today to find out more! provides a suite of insurance products that help you protect the value of your vehicle including replacement cost, limited depreciation, post-crash guarantee and OEM parts. Contact a broker in your area to get a quote.

Share this post

Not Your Average Replacement Insurance

We’ve designed our policies to stand out from the competition.

Locked in Premiums

Your Drivesure premium won't increase because of a claim, change in address, or young drivers.

Flexible Terms

Policy terms up to seven years are available for brand new vehicles.

Payment Plans

Finance your policy monthly through your bank account or credit card.

Find a broker near you

Contact one of our Broker partners in British Columbia or Alberta for a quote