BC New Vehicle Total Loss: Eligibility, Base Coverage and Settlement for Replacement Cost and Limited Depreciation

Eligibility and Base Coverage for Limited Depreciation

Vehicle owners who do not qualify for NVR+ or RCC may still qualify for Limited Depreciation. LD must be based on Collision plus Comprehensive coverage, or Collision plus Specified Perils coverage; most standard vehicles must also be within three model years.

Settlement Method for Limited Depreciation

When repair is not possible, LD settlement may be calculated at the lower of the original purchase price or the manufacturer's suggested retail price at the time of purchase, subject to policy conditions.

Total Loss Replacement and Model Year Limits under the Replacement Cost Endorsement

For a total loss or constructive total loss, the Replacement Cost endorsement may replace the vehicle with the newest same make and model new vehicle, subject to policy conditions, and lists a one to three model year eligibility limit.

Sources

• New vehicle protection
• Replacement Cost Endorsement (APV286A)

This article provides general information only and is not insurance, legal, or financial advice. Coverage is governed by current law and your policy wording.