Total loss settlement for New Vehicle Replacement Plus
Guidelines on the type of replacement vehicle received by the customer in the total loss settlement for New Vehicle Replacement Plus (NVR+) policy.
Total loss
A customer’s vehicle is declared a total loss when the estimated repair cost of the damage caused by an insured peril is over 50% of its actual cash value.
- covered under the NVR+ policy, and
- declared a total loss.
Settlement options
The settlement options available to the customer will depend on when the replacement vehicle is available in accordance with the table below:
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the most current model
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the same vehicle make with equipment and options that are similar, but not necessarily identical to those of the described vehicle, or
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any other make and model provided it does not cost more than the most current model of the insured’s vehicle.
replacement cost when replacement vehicle is not available within 30 days
the lesser of the:
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original net purchase price plus applicable inflation adjustment, or
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manufacturer’s suggested retail price (MSRP) of the vehicle at the date of purchase, plus applicable inflation adjustment.
replacement cost when replacement vehicle is not available within 30 days
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the cost of replacement vehicle for vehicles still in production, or
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the MSRP for that make at the time it was manufactured for vehicle no longer in production, plus applicable inflation adjustment.
replacement cost when replacement vehicle is available,
but the insured does not accept it
the lesser of the:
-
the original net purchase price plus applicable inflation adjustment, or
-
the MSRP of the vehicle at the date of purchase, plus applicable inflation adjustment.
replacement cost when replacement vehicle is available,
but the insurer chooses not to accept it
the lesser of the:
-
the most current model
-
the same vehicle make with equipment and options that are similar but not necessarily identical to those of the described vehicle, or
-
the MSRP for that make at the time it was manufactured for vehicles no longer in production, plus applicable inflation adjustment.
The total repair costs is coded to the appropriate Collision, Comprehensive coverage, and the difference between the total repair costs and the vehicle replacement costs will be coded to the NVR+ policy.
Limitations
The repair costs of two or more outstanding claims cannot be added together to become an NVR+ total loss.
Limitation example
If two claims exceeds 50% of Actual Cash Value (ACV) when combined, but do not meet the standard total loss criteria independently, they are not an NVR+ total loss.
- third party warranties
- manufacturer warranties, or
- other vehicle warranty insurance.
Deductible
- reimbursed for total losses, if applicable, or
- reimbursed if:
- one or more claims are combined to make a vehicle a total loss under the standard criteria (e.g. repair costs exceed the ACV less salvage), and
- the deductible from the most recent claim that is reimbursed on the total loss cheque and all other deductibles, if applicable, will be valid.