Optiom Prime Vehicle Replacement Explained

March 26, 2019 6 min read
Optiom Prime Vehicle Replacement Explained

You have heard it said that the value of your new vehicle drops by 20% as soon as you drive it off the lot. Even on a used vehicle, as the value decreases, so does the amount you would get in insurance coverage to replace that vehicle.

You spend a lot of time deciding on a vehicle that you love and will get you where you need to go… will you be able to replace that vehicle easily?

How much can you afford to lose if your vehicle is written off? Since 20% of your vehicle’s value is lost each year, it’s important to understand how you can cover yourself and your investment.

Introducing Optiom – a vehicle replacement program that helps your insurance on your new or used vehicle keep pace with the true cost of replacement.   Optiom’s vehicle replacement can be looked at as an enhancement to your current comprehensive coverage through your primary insurer (MPI in Manitoba or SGI in Saskatchewan for example). It provides up to seven years of coverage on new vehicles and up to five years of coverage for used vehicles. Compared to what is available to you now, this extends far past what is offered in the marketplace today. We’re excited to show you more!

What is Replacement Coverage?

Even though you may have adequate insurance coverage through your primary insurer, you could experience a loss leaving a gap in coverage. Vehicle replacement fills in that gap between where your primary coverage ends and the type of coverage you want and are comfortable with.

Who is Eligible?

Do have a vehicle and carry full collision and comprehensive coverage through your primary auto insurer? Great, you’re eligible! Whether you are a new driver, have been driving for 50 years, new to Canada or have a poor drivers history, Optiom is available to you!

New Vehicles

Optiom Benefits for New Vehicles

  • Current or prior year vehicle model
  • Less than 25,000 km at the time of policy purchase
  • Under 6,500 kg gross vehicle weight
  • Coverage can be transferred

Core Coverage

  • New Vehicle Total Loss Benefit
    • Optiom Prime will pay the difference between the market value of your vehicle (at the time of the loss) and the MSRP of a brand new, equivalent model replacement vehicle
    • Up to 84 months of coverage
    • Up to $60,000 for vehicles valued up to $150,000
    • Up to $80,000 for vehicles valued between $150,001 and $200,000
  • Total Loss Deductible Reimbursement
    • If you must pay your deductible in the event of a total loss, Optiom will reimburse you and pay up to $500 if written off

Optional Coverage

  • Partial Loss O.E.M. Benefit
    • If your vehicle requires repairs to be done, and your coverage through the primary auto insurer covers the repairs, Optiom Prime will pay for specified new O.E.M. genuine replacement parts
    • Up to $10,000 per year in parts
    • Up to $1,000 per year in labour
    • Up to 60 months coverage

For example, if vehicle replacement is maintained for seven years:

Used Vehicles

Optiom Benefits for Used Vehicles

  • Vehicle models up to 10 years old
  • No kilometer restriction
  • Under 6,500 kg gross vehicle weight
  • The full benefit goes to a new vehicle (no cash in lieu of)

Core Coverage

  • Used Vehicle Total Loss Benefit
    • Optiom Prime will pay the difference between the market value of your vehicle (at the time of the loss) and your vehicle’s value at the inception of the policy
    • Vehicle models up to 5 years old up to $60,000 for vehicles valued up to $150,000 and up to 60 months of coverage
    • Vehicle models over 5 years old up to $20,000 for vehicles valued up to $150,000 and up to 36 months of coverage
  • Total Loss Deductible Reimbursement
    • If you must pay your deductible in the event of a total loss, Optiom will reimburse you and pay up to $500 if written off

Optional Coverage

  • Vehicle Value Appreciation Benefit
    • This escalates the value of your vehicle by 5% per year in the event of a loss for an additional premium (subject to identified limits)

For example, if vehicle replacement is maintained for five years:

Along with the core total loss benefit, Optiom offers great optional coverage to further protect you and your vehicle!

Rental Vehicle Reimbursement Benefit

If you’ve ever had a rental vehicle you know the cost can add up quickly and sometimes you can’t quite line up the dates perfectly between the end of your rental and the return of your car. In the event that you require a rental vehicle, and the policy ends before your vehicle is replaced or repaired, Optiom will reimburse the cost to continue with the rental vehicle until the necessary repairs are completed. Optiom will top up your rental coverage by $1,500 per year.

Partial Loss Deductible Reimbursement Benefit

If you have a repairable loss, Optiom will reimburse you should you have to pay a deductible on your primary auto insurance policy. This covers you up to $500 and comes with an unlimited number of benefit requests.

Key Fob Reimbursement Benefit

We all know how fancy the technology in vehicles has become, even the key fob. Optiom will reimburse you if you need to replace your key fob up to $500 if keys are stolen or lost on a one-time request.

Diminished Vehicle Value Benefit

Accidents happen, and if at no-fault to you Optiom will pay a fixed amount if repairs exceed more than 25% of the declared value of the vehicle (at the time of the accident). If you are in an accident and are thinking of selling your vehicle, it is now worth significantly less. Optiom will contribute to this gap based on the value of the vehicle at policy inception to recover some of the value that was lost.

With the majority of Canadians keeping their cars an average five years, there is no replacement coverage during the time in which depreciation acts the most. Your primary insurer will cover your for collision and liability, but Optiom looks at the greater picture by covering loans or leases you may have on your vehicle. Your primary insurer doesn’t provide equity towards a replacement vehicle as well. With personalized vehicle protection and an affordable month-by-month plan with no minimum term obligation, you’ve got nothing to lose and better vehicle coverage to gain! Talk with us and see how we can help you with vehicle replacement coverage today!

Written by

Alex Harms is part of our marketing team at MIG Insurance and she specializes in writing content to make insurance easier to understand for our clients. She obtained her Bachelors in Commerce (Hons.) at the Asper School of Business and worked with MIG as a broker during her studies and now fulltime in a Marketing & Operations role. She has taken on many tasks her at MIG but enjoys the challenge. Outside of work she enjoys spending time with her family as well as her dog Murphy, out at the lake which is their favourite spot!