Save on Car Insurance Based on Your Real Needs
November 06 2023, L'Ami Auto Credit
It’s a well-known fact: the price of car insurance can quickly put you off if you don’t take the time to negotiate or ask the right questions.
WHAT YOU NEED TO KNOW ABOUT CAR INSURANCE
First of all, what usually drives up car insurance premiums is the famous “replacement value” clause.
But what exactly is this? Generally speaking, car insurance only covers the actual value of a vehicle at the time of an accident, for example. The “replacement value” clause gives you additional protection.
The replacement value rider is added to your car insurance by your insurer and is designed to protect you against a significant drop in the value of your vehicle during its first few years. But is it really necessary to pay for this rider if you’ve bought a vehicle at a very good price? You should be aware that the price of replacement value will significantly increase your annual premiums (between $200 and $400 in the first year).
Simply put, if you’ve decided to keep your vehicle for a long time, if you don’t drive many kilometres a year, or if your vehicle hasn’t depreciated significantly, then this replacement cost rider isn’t necessary. So much for replacement cost.
What about replacement insurance? As before, this is optional protection if your vehicle is a total loss:
Replacing your vehicle is mandatory
Your insurer will pay you the depreciated value of your vehicle.
In short, if your vehicle is getting on in years, this coverage is a good idea, since the compensation won’t be very high.
These two examples (replacement value and replacement insurance) show that you need to be well informed before accepting car insurance. Take the time to talk it over, so you don’t pay for nothing.
L’AMI AUTO CRÉDIT: EXPERTS IN EVERY RESPECT!
Whether you’re looking to buy a new or used car, our car financing experts can help you get the vehicle of your dreams. Not only do we have in-house financing solutions, but we can also answer all your questions.
Come and visit L’Ami Auto Crédit in Chicoutimi, La Malbaie, Baie-Comeau, Alma or Sept-Îles. A team of experts awaits you!
