Make sure you are compensated based on the price you paid in the event of a total loss
Did you purchase a used car or are you planning to do so? The purchase price option can be very useful if you get into an accident.
Purchase of a 2013 model
From May 2015 to May 2017
Use and depreciation
Total loss accident
Depreciated value of vehicle
on day of accident $5,000
purchase price option
purchase price option
Protect the investment you made in your used car in the event of a total loss, thanks to purchase price option!
- Protect yourself against depreciation: Make sure you are compensated based on the price you paid for your used car.
- Did you finance your vehicle? Make sure you can pay the balance of your loan, even if the value of the vehicle at the time of purchase is lower than the balance of the loan.
Not yet convinced or want to find out more?
Consult our Frequently Asked Questions
What does depreciation mean?
Depreciation is the difference between the purchase price of a vehicle and its resale price.
Depreciation occurs when the vehicle’s market value goes down and varies based on the model, features (transmission, fuel consumption, new or old model, etc.), mileage and maintenance of the vehicle.
A new car loses approximately half its value during the first three years after it leaves the assembly line. After this period, the depreciation is less significant over the years.
What’s the difference between a “total loss” accident and a “partial loss” accident?
For a vehicle to be declared a total loss, the cost of repairs must be greater than the value of the vehicle on the date of the accident. While the majority of vehicles declared a total loss are irreparable, it may be possible to rebuild some severely damaged vehicles, but they would cost more to repair than to replace with an equivalent vehicle.
Because I am on a tight budget, I do not want to pay for this coverage.
We understand the importance of budgets.
The purchase price option prevents you from incurring a significant financial loss at a small cost. In fact, during the first year following the purchase of your used vehicle, the coverage costs little. As the gap between the purchase price and the market value gradually increases over time, the coverage price also increases every year.
The benefit for you is that since it’s an optional coverage, you can cancel it at any time.
Firm in Damage Insurance. At all times, terms and conditions pertaining to coverage are governed solely by the insurance contract. Some conditions and exclusions apply.