New Vehicle Replacement Insurance
Protecting you and your vehicle from unexpected financial gaps.
Vehicle Replacement Insurance in BC
As we all know, newly purchased vehicles depreciate quickly. And when your vehicle is totaled, meaning the extent of the damage is so bad that your insurance provider considers it a total loss, our New Car Replacement insurance product will pay to replace your vehicle with a similar one, while protecting you from depreciation or inflationary gaps. With a New Car or Better Car Replacement insurance policy, you get peace of mind knowing you have coverage in place that will do far more than replace your written-off vehicle with an older model of lesser value.
Auto Insurance Renewal
Many drivers in British Columbia are now eligible to renew their car insurance online, provided they meet the ICBC Online renewal criteria. Those individuals with a renewal date of May 1st or later can start this online renewal process 45 days prior to their existing policy expiring.This process is entirely new in BC, as it marks the first time that ICBC policy holders can renew their car insurance online at their own convenience. However, rest assured that as your broker, we are still here to assist you every step of the way. We’ll be reviewing your renewals and answering your questions when you need us to. We’ll make sure your coverage matches your insurance needs.
How Do I Get Auto Insurance in BC?
We have 80 office locations throughout BC that offer ICBC insurance. With most open 6 or 7 days a week, that means there’s always a location nearby to assist you. We also have a number of offices that offer delivery services, so you don’t even have to leave your home to get your car insured.
How does New Car Replacement Insurance Work?
New Car Replacement insurance is an optional coverage designed to complement your comprehensive auto insurance policy. Without proper insurance coverage, an accident can end up costing you more than you might anticipate, even if you are not at fault. The financial gap in your collision and comprehensive insurance could be significant. Your insurer will pay you what’s called “Actual Cash Value” for your vehicle. In most cases, your vehicle’s actual cash value is significantly lower than what you originally paid for it.
Statistics show that simply driving a new car off the lot depreciates it by as much as 11%, and depreciation accelerates to 20% by the end of the first year. For example, you’ve purchased a brand-new vehicle, a 2021 Toyota valued at $40,000. After only a few days of driving it, you get into an accident that writes-off your new car. At the time of the accident, even though your car is only a few weeks old, its value has already depreciated to $36,000, leaving you with a $4,000 shortfall from what you paid for it.
With New Car Replacement insurance, you’ll be reimbursed for a new model of the same vehicle, not just $36,000. If you didn’t have New Car Replacement insurance, you would have to absorb the difference if you want to buy another brand-new vehicle of the same model.
Here are a few additional details to help you understand New Car Replacement insurance:
Coverage is available as long as you have collision and comprehensive insurance. Your basic ICBC auto insurance does not automatically include collision and comprehensive coverage.
Your vehicle must meet age and brand requirements to qualify. Your car is eligible for New Car Replacement coverage if it was made before a certain year and meets the make/model requirements.
We offer Better Car Replacement insurance. With this variation of New Car Replacement insurance, you may get reimbursed with a newer or better model of your car.
Key Features of New Car Replacement Insurance
InsureBC offers industry-leading New Car Replacement insurance that protects you and your vehicle.
Unique Eligibility Criteria
Purchase our product for any vehicle that is 5 years old or newer, regardless of its mileage. Yes, you may qualify even if you’ve been denied by other insurance companies.
Enhanced Total Loss Protection
We will pay the difference between the Actual Cash Value settlement you receive from your primary insurer and the cost of the brand new current model year vehicle the same as what you had previously.
Unlimited Partial Loss Deductible Reimbursement
Increase your collision and comprehensive deductibles with your primary insurer and we will reimburse you for any deductible paid to your primary insurer, saving you money on your primary premium.
Flexible Coverage Terms
Choose the coverage term to fit your needs. With our multi-year policies, your coverage is available for up to 7 years. Pay by credit card or have EFT withdrawals directly from your bank account—whichever you prefer.
Superior Optional Add Ons
Original equipment manufacturer (OEM) parts, Diminished Value and Plus Packages are available as optional add-ons. Simply add these to your policy for added protection.
Customer Testimonials
At InsureBC, we value the relationships we build with our clients. Don't just take our word for it – see what they have to say about their experiences working with our team of expert insurance brokers.
My agent was great-helped me through the online application and answered promptly when I emailed in forms or had a question. Thanks again
Had such a great experience. They helped me with everything with my ICBC plan from the beginning to the end
Fast, smooth transactions for vehicle insurance. Very friendly and professional staff.
I was purchasing a car and having my insurance swapped over. They made it so easygoing and had the best insurance broker I have ever dealt with. I’ll continue to use their expertise when renewing my policy annually. Thank you!
Request an Vehicle Replacement Insurance Quote Online
Tips & Tricks
Check your ability to afford a new vehicle
It’s important to check your financial situation in the event that your car is totaled. How much will you need to pay out of your pocket, and can you afford to do so?
Think about the likelihood of your vehicle being totaled
Typically, a vehicle is considered written-off when it would cost more to repair it than what the vehicle is worth. While you hope it will never happen to you, there may come a day that your vehicle is involved in a collision and is beyond repair. If it were to happen, you should understand the impact it will have on you and your potential insurance payout.
Determine the value of your vehicle after depreciation
Find out the value of your vehicle after depreciation so you have an idea of the difference between how much your primary insurer would pay out and what you would be responsible to pay out of your own pocket.
Understand the cost of New Car Replacement Insurance
The cost of new vehicle replacement insurance varies by insurance company. Our New Car Replacement insurance is priced competitively and gives you affordable coverage. While costs vary, most of our customers pay significantly less than what they would have paid with competing providers, such as ICBC.
Frequently asked Questions
What is the difference between new car replacement insurance and gap insurance?
The difference between New Car Replacement and GAP Insurance is this: GAP Insurance only pays the difference between what a person owes on their leasing contract and the vehicle’s actual cash value at the time of the loss. This means that you don’t owe anything for that vehicle but also aren’t left with anything to put towards a new one. A New Car Replacement policy pays the difference between the Actual Cash Value settlement received by the Lessor from the Primary Insurer, and the cost of the same make, model, and trim level vehicle, in the newest model year available. The New Car Replacement policy settlement can then be applied to a new lease or finance contract as a down payment towards the replacement vehicle.
Can the policy be transferred to a family member?
Yes! If you transfer ownership to any of your immediate family members mid-term, your policy can be transferred to the new owner. The recipient of your vehicle would keep the same policy number, effective and expiry date.
Can the policy be transferred to a new vehicle?
Yes! If you purchase a new vehicle while mid-term in your current policy, we can process a transfer of the policy to your new vehicle. This will generate a new policy, with a new policy number, effective and expiry date. Any unused portion of the premium for your previous policy can be applied to the new insurance premium as transfer credit.
Is New Vehicle Replacement Insurance worth having on a leased vehicle?
Yes! Nowadays, most leasing companies will build GAP insurance into their contracts, but most people don’t realize that GAP is more designed to protect the Lessor as opposed to the Lessee. In the event of a Total Loss, GAP insurance will make up the difference between what a person owes on their leasing contract and the vehicle’s actual cash value. This leaves the Lessee with no vehicle, and nothing to put towards a new one. Our New Car Replacement policy would pay the Insured the difference between the actual cash value settlement that the Lessor received for the loss vehicle, and the cost of the brand new model year, which can then be applied as a down payment towards a new lease or financing contract for a replacement vehicle.
How do I make a claim for my new vehicle replacement policy?
All claims are processed in-house by our dedicated Optional Auto Division, Drivesure, and can be submitted in a number of different ways. You can submit your claim via an online submission form located on our website, through your issuing insurance agent or broker, or by contacting our auto department directly at 1-888-480-6641. Documents can be submitted via email or fax, and claims are processed within 1-2 business days of receiving all documentation.
Do I have to buy the same vehicle as I had previously?
No, after a total loss you are not required to buy the same vehicle as you had previously. You are more than welcome to choose a different or better vehicle, or even take the cash settlement if you’d like, however we will only pay up to the replacement value of the same make, model, and trim package as the vehicle that you had previously. It will be in the most current model year.
Do I have to buy New Vehicle Replacement insurance when I buy my car, or can I get it later on?
Our unique eligibility guidelines allow for any vehicle that is 5 years old or newer to qualify for New Car Replacement coverage. That means you are not required to have just recently purchased your vehicle to qualify and can purchase a policy any time between your vehicle being brand new, and 5 model years old. There is also no kilometre restriction, just as long as your vehicle has not been driven on average more than 40,000 km a year since it was new.
Looking to File a Claim?
Our dedicated claims department is committed to making the claims process as smooth and stress-free as possible. Whether you need to file a claim for your home, vehicle, or business, we have the expertise to guide you through the process.
