Total loss and replacement wait times: what are your options?

You’re out of luck; your vehicle is declared a total loss after a collision. Although your car insurance covers replacement, you may have to wait a few months due to supply chain issues and low dealer inventories. 

If you have to wait a fair amount of time to get a new vehicle like the one you had, your Replacement Cost Coverage (Endorsement Q.E.F. No. 43, Option E) or your “Replacement Insurance” (Q.P.F. No. 5) provides several options.

Available options

Depending on the type of coverage you have, the following options may be available to you:

1. Replace your vehicle with a new identical or similar model

Replacement cost coverage provides compensation to replace the insured vehicle with a new one having the same specifications, equipment, and accessories. You may want to keep features like the seating capacity, integrated GPS or electric drive system for your next vehicle.

If obtaining a vehicle with these features is impossible, a similar new model may also be eligible.

Whether you have the replacement cost endorsement or replacement insurance, this option is available.

2. Replace your vehicle with a vehicle of equal value

You can also replace your vehicle with a completely different new or used model. If you have the Endorsement Q.E.F. No. 43E, the amount of compensation paid by your insurer will be equivalent to the price of the new or used replacement vehicle or the purchase price paid for the vehicle declared a total loss. The compensation will be the greater of the two without exceeding the cost of replacing the vehicle with an identical or similar new model.

This option is only available with Endorsement No. 43.

3. Replace your vehicle with a vehicle of higher value

You could buy a model that’s more expensive than your current vehicle or a similar one and pay the difference yourself.

This option is available whether you have Endorsement No. 43 or replacement insurance.

4. Replace your vehicle with a cheaper vehicle

You could also choose a vehicle with a price lower than the replacement value of your vehicle. The amount of the indemnity will then be equal to the greater of the price of the used replacement vehicle and the price you paid for the vehicle that is a total loss.

This option is only available with Endorsement No. 43.

5. Cash compensation with the marked-up price paid

You can ask to be compensated in cash according to the marked-up price paid*. This option corresponds to the price paid to purchase your vehicle, increased by an annually compounded percentage, calculated in proportion to the number of days elapsed between the date of the vehicle purchase contract and the date of the total loss or total constructive loss (the percentage correspond to the consumer price index (CPI) for the automobile sector).

* Option in force since January 15, 2025, Autorité des marchés financiers.

This option is only available with Endorsement No. 43. You can’t claim cash compensation only without replacing the vehicle if you have replacement insurance.