Total losses and replacement costs under Endorsement 43E: cash compensation

A new method to calculate cash compensation amounts—equal to the price paid with adjustments—is now available if you purchased Endorsement 43E, which stipulates payment at replacement cost in the event that your vehicle is declared a total loss. 

If you purchased Endorsement 43E, you have several options to replace your vehicle. Since the automobile market is constantly evolving, vehicle models and their specifications, equipment and accessories are constantly changing. This may make it more difficult for your insurer to find the same vehicle. 

In order to facilitate loss settlements in these situations, you also have the option of requesting cash compensation.

Endorsement 43E: New calculation for Option 3

The calculation* for the 43E cash compensation option was amended to reflect the marked-up price paid as follows:

The price paid to purchase your vehicle, increased by an annually compounded percentage (CPI), calculated in proportion to the number of days elapsed between the date of the vehicle purchase contract and the date of the total loss.

• Price paid: The price paid for the insured vehicle as specified in the purchase, long-term lease or lease financing agreement, including only its equipment and accessories. 
• CPI: Consumer Price Index for the automobile sector – l’Institut de la statistique du Québec. If the CPI for the year of the loss is not known, the CPI for the previous year is to be used.

*Option effective January 15, 2025, Autorité des marchés financiers.

Example

Important: This is not the calculation of the final indemnity, which may include other terms in the Contract. This is only the calculation of the marked-up price paid, as specified above. 

In all cases, discuss your policy options with your insurer.