Why is it taking longer to have vehicles repaired or replaced?

Automobile Why is it taking longer to have vehicles repaired or replaced?

Supply issues that arose during the pandemic continue to affect many industries, and the automotive industry is no exception. If you make a claim after a car accident, even with replacement cost coverage, you may still have to be patient or consider making some compromises. Here’s why.

Repairs: shortage of parts

Waiver of depreciation coverages such as Q.E.F. No. 43 A to F (Change to indemnity endorsement) or Replacement Insurance (Q.P.F. No. 5) provide that insured vehicles are to be repaired using new original manufacturer parts.

That said, the supply issues experienced by vehicle manufacturers affect the entire chain, right down to parts distribution. Delivery times for certain new parts for all makes—especially for newer models—may be long or hard to establish.

If repairing your vehicle is going to take a long time, discuss it with your insurer. They may be able to provide you with other options for getting your vehicle back on the road safely.

No courtesy vehicle? What are your options?

Given the delays caused by parts shortages, obtaining a courtesy vehicle while repairs are under way is not always possible. If you purchased the Travel expenses endorsement (Q.E.F. No. 20 or Q.E.F. No. 20a) or Replacement Insurance (Q.P.F. No. 5), know that this coverage not only includes vehicle rental, but also taxi fares or public transportation (subject to a maximum amount per day and/or per claim). Also, when renewing your policy, discuss this protection and check the possibility of increasing the amount of coverage.

Replacements: limited inventory and delivery times

Should a damaged vehicle be declared a total loss, replacement cost coverage is provided to replace it with a new model with the same features, equipment and accessories. The question is whether a replacement vehicle will be available!

For the past several months, many dealers have had little or no new vehicles in stock, selling them as they come in, based on orders and waiting lists. Delivery of the most popular models often takes several months or even more than a year.

If replacing your vehicle with an identical model within the desired time frame is not possible, talk to your insurer about other options that may be included in your policy. A different vehicle make or model, but of equal value, or not, could be the answer.

An unusual situation

Insurers are well aware of the inconvenience caused by this unusual situation. Until the supply chain for the automotive industry is fully restored, insurers will be working with their various partners to provide solutions that are safe and best meet the needs of policyholders.

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