What if I told you that in the event of a total loss on your vehicle we could guarantee a fixed payout amount on that vehicle? The worst thing about buying a vehicle is that it is typically a depreciating asset. Consider your SUV that you purchased new in 2013 for $65,000 may now only be worth $25,000. Vehicles are replaced on average every 6-8 years as that is when more maintenance may be required and the retention of vehicle value drops due to depreciation. Most insurance companies offer a waiver of depreciation endorsement, however this coverage typically ends after 30 months. I have never bought a new vehicle and have always bought lightly used. The insurance companies only offer this coverage on a brand new vehicle. What if I told you, you could have your cake and eat it too!

There is a Canadian based company called Optiom that Ravenhill recently teamed up with and will offer “Top up coverage” on new vehicles up to 7 years and used vehicles up to a maximum of 5 years.  A “New” vehicle is classified as a vehicle that is the current and prior year vehicle models with less than 25,000 km at the time of the policy. A “Used” vehicle is models up to 10 years old, regardless of the number of previous owners. This is over and above the standard insurance policy and costs on average $25/month.

For example: You purchased a new vehicle and the MSRP (manufacturers suggested retail price) is $30,000. Six years later you are in an accident that resulted in your vehicle being a total loss. Your vehicle is appraised for current market value and the insurance company offer is $9,000. That is a $21,000 difference. Had you purchased Optiom coverage and depending on the coverage option you choose, they would pay you up to approximately $27,000 in addition to the insurance company payout; a total of $36,000. You can also get coverage for up to $500 if your Key Fob is stolen or lost, if your vehicle is used you can “Vehicle Value Appreciation” which will escalate your vehicles value by 5% per year in the event of a total loss.

In summary, Optiom not only protects your vehicle from depreciation but it can also factor in the inflation price to get into a similar make and model vehicle in the year of the loss; true vehicle replacement insurance. Speak to one of our brokers for a quote for Optiom and see if you qualify for the best “Top up Coverage” available.

Serena Steinke