Car value protection, also known as Replacement cost car insurance endorsement belairdirect

Get peace of mind knowing that your new car is covered in the event of an accident. Avoid paying for damages to your car after an insured accident all by yourself with the replacement cost insurance endorsement that gets you back on the road.
Almost like nothing ever happened.

Get replacement cost coverage to protect your vehicle with belairdirect.

What is replacement cost car insurance coverage?

Replacement cost coverage is an insurance endorsement that could replace the current vehicle you were driving if ever it were to be deemed a total loss after an accident, or if it were stolen.

Replacement cost coverage is a popular option for drivers who just purchased or leased a new vehicle and want to be assured that they won’t be left paying off the vehicle with their own money if ever a covered incident were to occur.

With replacement cost coverage, should your car ever be deemed a total loss from a covered accident, you could be compensated for the loss. That way, you can get back on track with as little interruption to your routine as possible.

What is actual cash value coverage?

In the event that your car gets totalled in an accident or an incident covered by your insurance policy, actual cash value coverage could pay you back for the current market value of your vehicle.

“Actual cash value = Market value (while accounting for depreciation)”

Actual cash value will take depreciation into consideration and pay you what the vehicle was worth at the time of the covered incident.

Insurance companies use several criteria to determine what your car is worth in terms of actual cash value:

The year of the vehicle’s model: An insurer will take into account the year it was manufactured and how long it has been on the road.

Manufacturer’s Suggested Retail Price (MSRP) value: The value of the vehicle when it was purchased from the manufacturer.

Mileage: The more kilometers a vehicle has been driven, the greater the depreciation. Depending on how much mileage has been put on the car, the insurer can calculate depreciation more accurately when determining the value of the vehicle.

Prior accidents: If the vehicle was implicated in a previous major accident and was repaired, it may further contribute to the depreciation of the vehicle. If parts that are not OEM (original manufacturer’s parts) were used in the repair of the vehicle, this may also further drive down the actual cash value.

Vehicle condition: If your car has several bumps and dents in the fender, visible rust or other signs of pre-existing damage or wear and tear, an adjuster may consider them when calculating the actual cash value.

What is the difference between replacement cost and actual cash value?

Whereas replacement cost coverage could provide you with the required amount to replace the vehicle you lost or totalled when it was brand new, actual cash value may only provide you with an amount equivalent to the current market value of the car.

This difference is the reason why many owners who lease or buy new vehicles invest in replacement cost coverage. Conversely, owners of used cars have actual cash value coverage where a value is determined after a loss. Various factors come into account to determine the value of your vehicle at the time of your claim settlement.

Which is better, replacement cost or actual cash value?

In the majority of vehicle ownership scenarios, replacement cost insurance may be the better option.

Leased vehicles require you to have comprehensive and collision insurance coverages, as the vehicle belongs to the leasing company. However, your insurance coverage may only compensate the leasing company for the amount remaining on the vehicle.

It is also important to remember that a car is, in most cases, a depreciating asset and begins to lose value once it has been driven off the lot. In order to ensure that your coverage allows your insurance company to replace the new vehicle you paid for, be sure to consider replacement cost coverage.

Talk to an insurance agent to see if you’re eligible.

What does a replacement cost endorsement cover?

A replacement cost endorsement may differ from province to province and encompass slight differences in coverage. Click to see how a replacement cost endorsement could help you after an accident.

With replacement cost coverage, should your car ever be deemed a total loss, your vehicle could be replaced. That way, you can get back on track with as little interruption to your routine as possible/p>

In Ontario, this endorsement is called the Removing Depreciation Deduction, and could compensate you with one of the following:

  • The actual purchase price of the automobile and its equipment.
  • If the car is leased, the value of the automobile and its equipment as stated in the leasing agreement of the specified lessee.
  • The manufacturer's suggested list price of the automobile and its equipment on the original date of purchase.

Or

  • The cost of replacing the vehicle with a new car of the same make and model, similarly equipped.

In Quebec, the Replacement Cost endorsement could provide the named insured with one of the three following indemnity options:

  • Replacement by a new vehicle if the specified vehicle is replaced by a new vehicle with the same specifications or equipment and accessories.
  • Replacement by a used vehicle, if the value of the damage is equal to the price paid for the specified vehicle.

Or

  • Non-replacement of the specified vehicle where the named insured could receive the monetary amount for the specified vehicle equal to the specified vehicle is not replaced.

The value of damage would be equal to the price paid for the vehicle by the named insured, who is the actual owner or the current price of the specified vehicle on the original date of purchase, whichever is lower.

Does replacement cost include taxes in Alberta?

Replacement cost would include taxes, as you would include them as part of the price you paid when you submit for a car insurance quote.

Talk to an insurance agent to learn more about the Replacement Cost endorsement.

Does replacement cost include taxes in Ontario?

In Ontario, the amounts above include all applicable taxes.

Talk to an insurance agent to learn more about the Removing Depreciation Deduction.

Does replacement cost include taxes in Quebec?

Replacement cost can include taxes if you include them as part of the price when you submit for a car insurance quote. By including the taxes as part of the replacement cost, your coverage could entitle you the full amount you paid for the car.

Talk to an insurance agent to learn more about the Replacement Cost endorsement.

Protect those around you with liability car insurance coverage from belairdirect

Make sure that you’re not paying for an accident with replacement cost coverage from belairdirect.

Frequently asked questions about
liability car insurance coverage

A vehicle is a total loss if it would cost more to repair it than what the car is actually worth.

  • Talk to the claims adjuster who is handling your file. A claims adjuster will contact you and inform you of the next steps.
  • Find all applicable documents. A copy of your registration, sale or lease contract and repair invoices, are just a few items that will be requested.
  • Determine the value of your car. Upon receipt of the requested documents, your adjuster will be in a position to provide you with your vehicle's value.
  • Your vehicle will need to be emptied of all personal belongings.
  • Your consent is needed to move your vehicle to one of our recycling companies to minimize costs until the settlement of the file. Only then will the ownership of the car be transferred to belairdirect’s name.
  • Your vehicle's value is established by your insurer depending on the insurance coverage in effect when the loss occured.


It’s a terrible feeling to discover that your vehicle has been stolen. We can help you to recover your belongings. Remember that in addition to your car, your insurance may cover some of the items inside it (as long as they were used only with your car).

  • Check if your car was towed. Look at nearby signs to see if there are parking restrictions where you parked. You may want to call a towing company to double check that the vehicle was not towed.
  • If you suspect your car has been stolen, report the incident to the police.
  • If you have a tracking system or tracking device, call the company to begin a search for your vehicle.
  • Call us. Our claims representatives can start your claim and help you decide what to do next.
  • To process your claim properly, you’ll need to have these details ready: registration certificate, driver’s licence, purchase/rental contract, make/model/serial number of your car, invoices (for repairs, maintenance and added equipment) and keys. You should also make a list of the items that were in the vehicle when it was stolen.
  • Talk to a claims adjuster. Within 24-48 hours of you opening your claim, a claims adjuster will call you to complete your statement.
  • When your car was stolen, it may have contained items that weren’t covered by your car insurance policy. However, they may be covered by your home insurance or other insurance policy, depending on your coverage


Here are some steps to follow, whether your car has suffered a minor fender bender or major structural damage. Make sure you're safe and that your car is not a danger for others, then gather all the necessary information you need to begin the claim process.

  • Take a moment to check that you and any passengers in your car haven’t been injured. Your health is the most important thing to consider.
  • If your car is still drivable, move your vehicle to a safe location out of traffic right away.
  • Even if you think you may be responsible, do not make a decision in the moment that may cost you money later.
  • You and the other driver should provide each other with your name, address, telephone number, driver's licence number, insurance company name and policy number, and year/make/model of vehicle.
  • Look for witnesses. If someone saw your accident, you may want to want to ask if you can contact them to support your version of events.
  • Report it to the police. In cases where the damage is slight and no one was hurt, many people think it’s not important to report the incident. But if there is any damage at all, reporting it to the police is a good rule of thumb.
  • Get to the nearest repair shop. In most cases, if your vehicle cannot be driven, a tow truck is legally obligated to bring it to the nearest Collision Reporting Centre. You can contact us from there to talk about your next steps, including taking your car to a repair shop from our Rely Network®.
  • Contact us as soon as possible. We can confirm your insurance coverage, tell you if you're entitled to any services or to a rental car, and recommend a preferred repair shop. You can reach a belairdirect claims representative at 1 877 270.9124, 24 hours a day, 7 days a week.
  • Only fix what needs to be fixed. Please contact us before making any other repairs.


We'll bring in an appraiser who will look up the going rate for cars like yours in your area. They'll also look at the condition of your car before the accident, paying attention to things like mileage, options, and any damage that was there before the accident.

A depreciation is when something goes down in value because of wear and tear, age, or by becoming obsolete.

* Please refer to your insurance policy for further details regarding specific benefits for your province.

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