The basic rule in damage insurance is to pay compensation based on the value of the property on the day the loss occurred. However, there are certain types of coverage that protect against depreciation.
In automobile insurance, the replacement cost endorsement (Q.E.F. no. 43) and replacement insurance (Q.P.F. no. 5) are two products that protect the insured against vehicle depreciation in the event of a total or partial loss.
Although these two products have certain similarities, it is important for damage insurance professionals to be aware of and understand the differences between them, in order to explain their advantages and disadvantages to their clients and help them make an informed decision on the product that best suits their needs.
The table comparing endorsement Q.E.F. no. 43 and Q.P.F. no. 5 explains the main differences between these two types of coverage for new vehicles.
For further information, please read the document below.
Comparison Table: Endorsement Q.E.F. No. 43 and Q.P.F. No. 5 (Please note that this tool is currently being translated and will be available shortly. In the meantime, you may wish to consult the French version available here.)It includes information on:
Another tool available to consumers that explains the differences between the two products and helps them make the right choice or better discuss the options with their insurance professional:
Automobile Insurance: Replacement Cost or Replacement Insurance? (Please note that this tool is currently being translated and will be available shortly. In the meantime, you may wish to consult the French version available