Insurance Question

[Clearly Canadian]

This may be specific to Canadian owners living in Alberta, I'm not sure. My insurance company indicated that they do not insure the replacement cost of the vehicle; rather, they insure a portion of it (ie what they deem the vehicle is worth / likely without options etc).

I find this problematic. Let's suppose I drive away from the dealership and immediately total the vehicle. I would be out $x,000 on the spot. What have others done in regards to this? I also heard from someone that sometimes the dealers have insurance that they offer the day you complete your financing/pick up the vehicle. Any advice would be great.

 

[Bishop]

I live in Ontario so things may be a bit different, but my insurance company has something called 'waiver of depreciation' that you can add on to your insurance. If your car is stolen or damaged beyond repair then you get either: the actual purchase price of the car and equipment, the cost to replace with the same make and model similarly equipped, or the manufacturer's list price of car and equipment on the date of purchase. You get the lower of those three things.

I think that is what you are looking for. It's a thing for newer cars that basically covers any depreciation on the car if it needs to be replaced. I definitely included that in my insurance. So it might just be that your insurance company doesn't have that, maybe look into other ones (I use belairdirect).

 

[Kazz]

Car insurance has been this was as long as I've been driving. And I ain't young. From what I understand, @Bishop is correct. Check with your insurance company to know for sure.

 

[MikeyCanuck]

As a fellow Albertan... I’m pretty sure @Bishop has it right... my insurance will not cover extended warranty, protection package, etc. Just replace the same model vehicle... no extras...

 

[Chris]

It's called gap coverage here in the US. If you lease it here it is part of the lease cost. Some lending companies also include it in the loan...

 

[breid5921]

This may be specific to Canadian owners living in Alberta, I'm not sure. My insurance company indicated that they do not insure the replacement cost of the vehicle; rather, they insure a portion of it (ie what they deem the vehicle is worth / likely without options etc).

I find this problematic. Let's suppose I drive away from the dealership and immediately total the vehicle. I would be out $x,000 on the spot. What have others done in regards to this? I also heard from someone that sometimes the dealers have insurance that they offer the day you complete your financing/pick up the vehicle. Any advice would be great.

Not related to the actual post but to insurance. Do you find the stinger expensive to insure ??

 

[bluecatsup]

It's also called gap insurance here in SK. And we have provincial government regulated insurance so its cheaper (sorry everyone else in Canada)

 

[Kazz]

FWIW, while I don't pay additional for a full replacement rider, I did "replace" a 2016 Ford Fiesta ST (cloth seats, not top of the line) with a fully loaded Stinger GT. My policy increased by $3.10 U.S. per six months. Dirt cheap and rather surprising. $500 deductible for both Collision and Comprehensive is unchanged.