RE: Vehicle replacement coverage can be good investment, Prince George Citizen, Nov. 17, 2016.
We were disappointed to read Blair Qualey's column about a customer who was seemingly unhappy at the level of coverage offered by ICBC's New Vehicle Replacement Plus (NVRP) policy. As we don't know who this customer is, we've reached out to the New Car Dealers Association in the hope they can connect us to the customer so we can assist them.
Our NVRP coverage was introduced a few years ago in response to more customers looking for a policy that would give them the peace of mind knowing that when they buy a new vehicle, they'll drive new - even after a crash.
Any customer who purchases our NVRP coverage is entitled to a replacement of that vehicle's most current model, if available. For example, if your 2015 vehicle was involved in a total loss this year, we will replace it with a 2016 model of the same vehicle. If a replacement vehicle is not available or if a customer wishes to purchase an entirely different vehicle, they would be eligible to receive a cash payout equivalent to the purchase price of their vehicle or the manufacturer's suggested retail price at the time you bought your vehicle, plus an additional markup for inflation.
Our coverage also covers depreciation - the difference between the price you paid for the vehicle and the price it's currently worth. This can make a huge difference as a vehicle depreciates in value as soon as you drive it off the lot and most insurance policies will only reimburse the depreciated value of the vehicle, which could be thousands less than you paid.
However, as is likely the case with almost all auto insurers who offer a vehicle replacement policy, our coverage is not there to make up any financial shortfall the customer experiences as a result of how they choose to finance their vehicle purchase.
We hope that helps explain the value of our NVRP coverage to any customer considering buying a new vehicle.
Rob Wilson
ICBC senior director, insurance
Vancouver
