Last updated 2026-10-21

Co-insurance on a declared value vehicle repairs

The determining factors for when co-insurance applies to repairs on a declared value vehicle.

When processing a claim for a declared value vehicle, an estimator or appraiser must determine
Note: For additional information, refer to the topics

Applicability

Co-insurance only applies on an Own Damage claim.

Co-insurance does not apply to
  • third party claims with property damage, or
  • claims where Basic Vehicle Damage coverage is being accessed.
Exception: When the declared value is accurately declared on a vehicle being repaired, an ACV calculation is not required; instead, the estimator or appraiser only needs to add a note to the claim to provide the reason for not requesting the ACV calculation.

The co-insurance clause means a customer must pay a portion of the loss, if their vehicle’s declared value is less than 90 per cent of its ACV. This does not apply, if the value the customer declares is less than $10,000, and the ACV at the time of the claim exceeds the declared value by less than $1,000.

When the declared value is more than 90 per cent of the ACV at the time of the loss, co-insurance does not apply. The claim will be paid up to the customer's declared value less their deductible.

Considerations

The application of co-insurance on a declared value vehicle repairs is influenced by the following:
What influences co-insurance Co-insurance
Loss type Applies to Own Damage coverage loss types only.
Customer's declared value on their policy Applies to vehicles and/or equipment repairs.
Declared value less ACV ratio

Applies when the declared value of the vehicle is less than 90 percent of the ACV.

Note:
The ACV for a commercial vehicle is
  • completed manually using multiple resources, and
  • documented in the
    • Total Loss Worksheet (CL30), or
    • Commercial Claims Appraiser (CL210) report.

For additional information, refer to procedure, Determine manual actual cash value for commercial vehicle
Minimum ACV Does not apply when the ACV of a vehicle and its equipment is less than $10,000; unless, the ACV of the vehicle and its equipment exceeds its declared value by at least $1,000.

Additional information

Refer to the following for additional information:
Parent topic: Co-insurance calculations on a declared value vehicle