Replacement cost insurance FAQ

1.     If I have liability insurance on my vehicle and it suffers a fire, theft or vandalism, can I obtain your replacement insurance?

o   YES, but you should know that if you are the victim of an at-fault accident and you have not purchased this protection from your primary insurer (auto insurer), the replacement insurance will not pay out. Remember that replacement insurance always follows your primary insurance. Your primary insurer pays according to your coverage as set out in the contract, and your replacement insurance will pay the part that is not payable by your primary insurer, also in accordance with the conditions of the contract. If you need a rental car due to a covered claim, you will have to pay the insurance premium to cover the rental car in the event of an at-fault accident that is not covered by your primary policy.

2.     If my vehicle is only insured for liability, can I obtain your replacement insurance?

o   NO, you must have either full coverage or liability insurance plus B2 (collision), B3 (accident without collision) or B4 (specified risks). WARNING: If you purchase coverage for your vehicle, for example liability plus B3 (accident without collision) only, without B2 (collision), and you are the victim of a no-fault collision, your primary insurer will compensate you based on the value on the day of the accident, and the replacement insurance will not cover you. You will not receive anything from your QPF No. 5.

3.     What are the advantages of purchasing replacement insurance with you compared to the dealership?

  • Lower price. Car dealers sell replacement insurance at a much higher price than insurance brokers. According to an AMF report in 2014, on average it's a difference of $675 per policy.
  • You're better off buying insurance products from an insurance broker like J. Gérard Fortin et Associés Inc. rather than from a car dealer. We have AMF-certified brokers to advise you well.
  • Reimbursement of your deductible in the event of a total loss up to a maximum of $2,500 per event (with dealerships, you are limited to $500).
  • Courtesy vehicle: You have the freedom to rent a vehicle at the location of your choice and you are sure of the availability of the vehicle. NOT WITH A DEALER. In addition, if you're interested, the administrator of our replacement insurance has an agreement with DISCOUNT to facilitate your rental needs.
  • Courtesy car allowance: We offer you $75 per day up to a maximum of $2,250 per event, taxes included. Dealers only offer $50 per day up to a maximum of $1,500.
  • When replacing a vehicle following a total loss, the dealer has chosen option 1 for you, which says: “You must replace the insured vehicle through the designated dealer,” i.e. the same dealer. Plus, you will be stuck with the same make of car, even if you want to change. With option 2, you have the freedom to purchase the make and model of your choice from the dealer of your choice. No restrictions. Option 2 is what we offer.
  • Repair and maintenance of your vehicle: With the replacement insurance we offer, you have the freedom to have your vehicle repaired or serviced at the location of your choice, NOT AT THE DEALERSHIP. The dealer will require that all maintenance and repairs be done by the dealership. YOU DON'T HAVE A CHOICE. This will lead to an increase in your maintenance and repair costs.
  • When settling compensation for a total loss: With our replacement insurance, you know that you will receive a payment by cheque, either made out to you or to you and the dealer of your choice. If you purchase the product from the dealership, they will not give you a cheque to replace your car. They will offer you the models of the same brand that are available, and whatever promotions are in effect, if any. For example: If your financial situation is no longer the same as when you bought your vehicle and you no longer have good credit, or if you wish to take advantage of a promotion that another dealership is offering, you will not receive anything and you will have wasted your money. NOT WITH US.
  • Protection for used vehicles more than 60 days after purchase, or purchased from an individual: You can't return to the dealer to take advantage of this insurance. We can offer it to you without any problem.
  • Replacement value insurance transfer: We can transfer the replacement value insurance from your primary insurer (QEF No. 43 a-e) to our replacement insurance. So, if your insurer withdraws this protection for whatever reason or if it expires over time (for example, after 48 months), we can continue the coverage for a maximum of 84 months, including the time incurred with the insurer.
  • Cancellation of replacement insurance: If you financed or leased your vehicle and you wish to cancel your replacement insurance, the dealer will not be able to reimburse you as long as your financing is in effect. Why? Because the dealership added it to your financing application without notifying you, and they can't break or change the contract. You will have to wait until the end of the contract to be reimbursed. During this time, you'll pay interest on this amount until the end of the term. They will not reimburse you for the interest charged on this amount or the interest you could have made if you had invested it. On the other hand, with our replacement insurance, you receive your money quickly.

4.     What are the advantages of taking out QPF No. 5 replacement insurance instead of the replacement cost endorsement (QEF No.43 a-e) with my primary insurer (QPF No. 1)?

  • With our replacement insurance (QPF No. 5), you're sure to keep your coverage for the desired term. With your insurer (QEF No. 43 a-e), you must meet the insurer's standards at each renewal. In addition, the insurer may decide to no longer offer you this protection.
  • Insurers are limited to 48 or 60 months of coverage, while we can cover you for 84 months.
  • The insurer cannot give you the final premium because the premium will increase rapidly with each renewal. With our replacement insurance, you know from the start what amount you will pay for the entire term. That means no nasty surprises and easier budgeting.
  • With a replacement cost endorsement (QEF No.43 a-e) from an insurance company, you will have to pay your deductible, if applicable, in the event of a partial or total loss. With replacement insurance (QPF No. 5), deductibles are reimbursable for a partial loss (max. $250 per claim) and for a total loss (max. $2,500 per claim).
  • Courtesy car allowance: We offer you $75 per day up to a maximum of $2,250 per event, taxes included. Not included in the QEF No.43 a-e endorsement.
  • In the event of compensation by the primary insurer covering the replacement value for a total loss (QEF No.43 a-e), the primary insurer could give you a new vehicle from the previous year if there are any available on the market. However, with our replacement insurance product, we will replace it with a vehicle from the current year.

5.     How will my claim for total loss or theft be calculated by my replacement insurance for my used vehicle?

  • For a used vehicle that was purchased or leased from a car dealer within 60 days of the replacement insurance entering into effect (QPF No. 5):
    • The compensation is calculated at 5% per year compounded, on a day-by-day pro rata basis. This means that we will mark up your vehicle's value by 5% per year so that you can receive another vehicle in the event of total loss or theft. Example: http://cimeinc.qc.ca/en/exemples_fpq/3_en.pdf
  • For a used vehicle, 60 days or more after taking possession of the insured vehicle, whether purchased or leased from a car dealer, as well as in the case of a sale between individuals:
    • The compensation is calculated at 17% per year compounded, on a day-by-day pro rata basis. This means that we will mark up your vehicle's value on the day of the loss by 17% per year so that you can receive another vehicle in the event of total loss or theft. Example: http://cimeinc.qc.ca/en/exemples_fpq/4_en.pdf

6.     Is my replacement insurance (QPF No. 5) the only insurance I need to take out to insure my vehicle?

o   NO. You must take out an insurance policy (QPF No. 1) through an automobile insurer. If you need primary insurance, don't forget that your J. Gérard Fortin et Associés Inc. broker can find the best deal for you. Click here for a free online quote or call us at 514-729-6001 or 1-800-361-1321.

7.     What happens if I have to cancel my contract?

o   The insurance premium will be reimbursed to you on a pro rata basis in accordance with the "Cancellation Table." Only the fee will not be reimbursed. This fee is paid to J. Gérard Fortin et Associés for the management of your file.

8.     In the event of a total loss, can I change the brand of vehicle?

o   YES. You have the freedom to change the brand, model, dealer and even insurer if you wish. You have complete freedom.

9.     Where should I have my vehicle repaired so as not to lose the benefits of the replacement insurance that I took out with you?

o   Unlike with a dealership, you have the freedom to have your vehicle repaired or maintained by the garage of your choice. There are no restrictions.

10.   If I lease my new vehicle, what are the benefits of purchasing QPF No. 5 replacement insurance?

  • Reimbursement of your deductible in the event of a total loss up to a maximum of $2,500 per event (with dealerships, you are limited to $500).
  • Courtesy vehicle: You have the freedom to rent a vehicle at the location of your choice and you are sure of the availability of the vehicle. NOT WITH A DEALER. In addition, if you're interested, the administrator of our replacement insurance has an agreement with DISCOUNT to facilitate your rental needs.
  • Courtesy car allowance: We offer you $75 per day up to a maximum of $2,250 per event, taxes included. Dealers only offer $50 per day up to a maximum of $1,500.
  • Partial loss - new original parts: When your primary insurer applies depreciation on parts (wear and age) following a claim, your replacement insurance will pay the difference in cost between the used or refurbished part and the new original part. If a lease agreement requires the vehicle to be repaired with original parts, your replacement insurance will pay the difference for you. That's an additional unforeseen expense that could cost you a lot.

11.   How long do I have after purchasing my new vehicle to decide whether to take out this insurance coverage?

o   You have up to 120 days after purchasing the vehicle to purchase replacement insurance for a new car. If you exceed this period, you can purchase replacement insurance for a used vehicle. So, essentially, you can take it out anytime.

12.   If I bought my vehicle outside of Canada, is it possible to take advantage of this replacement insurance?

o   YES, even if your vehicle comes from another country, you can buy this protection. A copy of the customs form is required. You must use the amount mentioned on the customs form to determine the value of your vehicle. In this situation, it’s best to give us a call at 514-729-6001 or 1-800-361-1321.

13.   I currently have car insurance (QPF No. 1) with a replacement cost endorsement (QEF No.43 a-e). When I renewed, the insurer cancelled my replacement cost protection (QEF No.43 a-e), saying that my file no longer met their standards (claims) and that the protection was withdrawn. I don't want to lose this protection. Can you help me?

o   YES. We can continue the replacement cost protection (QEF No.43 a-e) if your insurer cancels it, or even if it expires. Coverage cannot exceed 84 months from the date the vehicle was purchased.

14.   My replacement cost coverage (QEF No.43 a-e) is coming to the end of its 48-month term with my auto insurer. Is it possible to continue my coverage with you?

o   YES. We can extend replacement cost coverage (QEF No.43 a-e) or even replacement insurance (QPF No. 5). Coverage cannot exceed 84 months from the date the vehicle was purchased.

15.   Who is the insurer of the replacement insurance product you sell?

o   Our replacement insurance is provided by Intact Insurance.

16.   What happens when replacing my new vehicle following a total loss if the model no longer exists?

o   The value of the vehicle to be replaced will be determined by the QPF No. 5 insurer by finding equivalents on the market.

17.   Would it be possible to have a copy of the QPF No. 5 replacement insurance?

o   YES. Here is the wording of QPF No. 5, which comes from the website of the Autorité des Marchés Financiers (AMF): https://lautorite.qc.ca/fileadmin/lautorite/formulaires/professionnels/assureurs/automobile/fpq5-mars_2019_an.pdf

18.   Is it possible to pay the balance of my replacement insurance if I am currently using bank account direct debits?

o   YES, you can pay off your account balance at any time either by credit card or by cheque. Contact us at 514-729-6001 or by email at vincent.fortin@jgfortin.com. Please indicate your policy number. You will save the costs of the remaining bank direct debits.

19.   Can I pay for my replacement insurance by credit card?

o   Yes. However, it is only possible to pay the total premium. For the moment, bank withdrawals by credit card are not available.

20.   What should I do in the event of a claim?

  • Call your primary insurer (QPF No. 1) to report the claim.
  • Contact us at 514-729-6001 or 1-800-361-1321 and dial 1 (claims department).
  • NB: If your automobile insurance (QPF No. 1) is also with J. Gérard Fortin et Associés Inc., you will only have one call to make. Think about it! Click here for a car insurance quote.

21.   How can I make it easier to manage my insurance policies?

o   By entrusting us with the management of your entire insurance portfolio. J. Gérard Fortin et Associés Inc. has been a financial services firm for 80 years and can offer you these services for auto insurance, home insurance, commercial insurance, recreational vehicle insurance (motorcycle, ATV, scooter, boat, snowmobile, etc.), life insurance, disability insurance, E&O, surety bonds and much more.

22.   I just had an accident and am not covered for a rental car. Can you help me?

o   Yes, because with your QPF No. 5 replacement insurance contract, you are entitled to an allowance of $75 per day up to a maximum of $2,250 per event, taxes included, for the rental of a similar vehicle. You are responsible for obtaining insurance coverage for the rental car.

23.   My insurer is asking me to pay my $500 deductible following a claim. Am I covered with my replacement insurance?

o   YES. Your replacement insurance will reimburse you up to $250 per event for a partial loss and up to $2,500 for a total loss.

24.   I use my vehicle for business. Can I purchase your replacement insurance?

o   If you have a commercial policy (QPF No. 1) with classes 33, 35 or 36, it is possible to cover your vehicle with replacement insurance. For all other commercial classes, you cannot purchase this protection. If this is the case, please contact us right away at 514-729-6001 or 1-800-361-1321.

25.   If I change vehicles and I have replacement insurance with you, what will happen?

o   We will cancel your current contract and you will be reimbursed pro rata for the remaining days less the J. Gérard Fortin fee. You will be able to take out new replacement insurance to cover the vehicle you have just purchased, for a maximum period of 84 months.

26.   If my vehicle is plated in Ontario, can I take out replacement insurance (QPF No. 5)?

o   NO. This protection is exclusive to vehicles with Quebec plates.

27.   If I move and leave Quebec, can I keep this protection?

o   No, unfortunately this protection is only for vehicles plated in Quebec. You must request a cancellation of the policy and you will be reimbursed pro rata for the remaining days less the J. Gérard Fortin fee.

28.   If I move and leave Quebec, will my Ontario insurer recognize this protection?

o   YES. The Financial Services Commission of Ontario has confirmed to us that QPF No. 5 replacement insurance for new cars can be transferred to an Ontario car insurance policy. Note that the replacement cost protection offered in 2016 in Ontario is only two years.

29.   If I move to Ontario for two years and I took out QPF No. 5 replacement insurance two years ago, what will happen to my 84-month coverage?

  • If your vehicle remains plated in Quebec, you can keep your protection. You must notify your QPF No. 1 primary insurer that you are leaving Quebec.
  • If you license your vehicle in Ontario and your vehicle was purchased two years ago or more, you will not be able to replace this protection. In Ontario, replacement cost protection is only available for two years. You only have two options left:
    • Request a cancellation of your QPF No. 5 contract and you will be entitled to a refund. Unfortunately, you will no longer have protection.
    • Keep your QPF No. 5 contract because after two years, you will be back in Quebec and you will have a Quebec plate. This means that for the time your vehicle is plated in Ontario, you will not have the protection of this insurance. When you plate the vehicle in Quebec, you can continue to benefit from the protection of your QPF No. 5 until maturity. WARNING: If you cancel your QPF No. 5 contract, it will no longer be possible to resume this protection with the same conditions.