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Replacement Cost Endorsement

In consideration of the premium stated in the Advantage Auto Insurance Application/Declaration and in the event that loss of or damage to the Described Vehicle for which indemnity under Section C exceeds the deductible amount specified in the policy, the Insurer agrees to waive its rights under Statutory Condition 4(5) and in the event of Total Loss to the vehicle the insurer agrees to waive its rights under Statutory Conditions 4 (5) and 4(6), and:

  1. If an Accident renders the Described Vehicle a Total Loss or Constructive Total Loss during the term of this Endorsement, the Insurer will, subject to condition 5 below, indemnify the Insured for direct and accidental loss or damage caused to the Described Vehicle, either:
    1. by replacing the Described Vehicle at the Insurer's cost with the most current model of a new vehicle of the same make and model and with equipment and options attached thereto similar, but not necessarily identical, to those listed on the Bill of Sale where such replacement vehicle is deliverable to the Insured by a dealer within 30 days of the determination of a Total Loss or Constructive Total Loss; or
    2. if a replacement vehicle as described in condition 1(a) is not deliverable by a dealer within 30 days of the determination of a Total Loss or Constructive Total Loss, by paying the Insured the lesser of the following:
      1. the verified original Purchase Price actually paid by the Insured for the Described Vehicle as evidenced by the Bill of Sale; or
      2. The manufacturer's list price at the date of purchase of the Described Vehicle together with any dealer options attached that may be listed on the Bill of Sale plus a percentage of (i) or (ii), whichever of these is paid, such percentage to be determined from the following table, by the model year number of the Described Vehicle:
      3. Model Year Number Percentage to be Added
        Model year 1 2.5%
        Model year 2 5.0%
        Model year 3 7.5%
    3. or, where replacement vehicle is available under condition 1(a) above and the Insured elects not to replace the Described Vehicle in accordance with condition 1(a), by paying the Insured the settlement amount calculated under condition 1(b), provided that such amount does not exceed the cost of the Replacement Vehicle as determined under 1(a). This Endorsement does not apply with respect to betterment resulting from the repair or replacement of parts having prior un-repaired damages.
  2. The Insurer may, subject to condition 5 below extend the timeframe contained in condition 1(a) for delivery of a replacement vehicle if such replacement vehicle cannot be delivered to the Insured by a dealer within 30 days but it can be delivered within 90 days after the date of the Accident and the Insured is willing to wait up to 90 days for the replacement vehicle to be delivered.

    If such replacement vehicle is not subsequently delivered within 90 days, then indemnity shall only be afforded in accordance with condition 1(b).

    Where the replacement vehicle is delivered within 90 days in accordance with condition 2, but the Insured, after having agreed to wait the 90 days, subsequently elects not to accept the replacement vehicle, the settlement basis outlined in condition 1(c) will apply.

  3. Where within the term of this Endorsement, an Accident causes direct loss or damage to the Described Vehicle that does not render the Described Vehicle a Total Loss or a Constructive Total Loss, the Insurer, agrees subject to condition 5 below, to indemnify the Insured by paying for the cost of repairs of the Described Vehicle, using Original Equipment Manufacturer parts for such repair, and without requiring the Insured to contribute any amount by way of depreciation or betterment to the cost of such worn or used parts as are replaced. If Original Equipment Manufacturer parts are not available, the Insured will indemnify the Insured by paying for the cost of repair of the Described Vehicle, using new parts of like kind or quality to those used or recommended by the manufacturer of the Described Vehicle.
  4. Where a premium has been paid to the Insurer by the Insured for Replacement Cost Advantage Plus option as shown in the Advantage Auto Insurance Application/Declaration,
    1. if during the period when this Endorsement is in effect, an Accident causes direct loss or damage to the Described Vehicle that does not render the Described Vehicle a Total Loss or a Constructive Total Loss, the Insurer will treat the loss or damage as a Total Loss or Constructive Total Loss in accordance with conditions 1, 2 and 3, provided that the loss or damage renders the Described Vehicle a "Major Damage Loss", and
    2. the Insurer will reimburse the deductible amount applicable to the underlying insurance where the Described Vehicle is rendered a Total Loss, a Constructive Total Loss or a Major Damage Loss.
  5. This Replacement Cost coverage only applies to a Described Vehicle if the loss occurs during the term of this Endorsement and within three (3) model years.
  6. No Indemnity is afforded by this Endorsement:
    1. Where the Insured is not a resident of British Columbia: or
    2. for a vehicle which is not licensed in the Province of British Columbia; or
    3. where the Described Vehicle
      1. is a commercial vehicle having a licensed gross vehicle weight in excess of 5,000 kg: or
      2. is not Insured by Underlying Insurance under rate class 01, 02, 03 or 07 at the time of the loss; or
    4. for a claim or demand
      1. for loss or damage arising out of repair of prior un-repaired loss or damage to the Described Vehicle at the same place or an adjacent place to any place on the Described Vehicle that has suffered repairable loss or damage for which a claim may be made under this Endorsement:
      2. for loss or damage arising out of a claim for Accelerated Depreciation caused by or resulting from the repair of any loss or damage to the Described Vehicle; for any claim for loss of use of the Described Vehicle; or
      3. under condition 1, unless the Insured produces Bill of Sale; or
    5. where insured vehicle is not a model year 1, 2 or 3,
    6. where insured vehicle is a rebuilt, replica, specialty or past rental vehicle.

Except as otherwise provided in this Endorsement, all limits, terms, conditions, provisions, definitions and exclusions of the policy shall have full force and effect.

Definitions

"Constructive Total Loss" means the condition of the Described Vehicle that exists when it might be feasible to repair the Described Vehicle after it has been damaged but the cost of repairs to the Described Vehicle exceeds the Net Actual Cash Value of the Described Vehicle in the condition that the vehicle was in immediately prior to the occurrence of the loss or damage for which indemnity is afforded by this Endorsement.

"Major Damage Loss" means that condition of the Described Vehicle that exists when it might be feasible to repair the described vehicle but the cost of repairs to the described vehicle exceeds 50% of the Actual Cash Value of the Described Vehicle as the condition of that vehicle was immediately prior to the occurrence of the loss or damage for which indemnity if afforded by this endorsement, but the vehicle is not severely or extensively damaged to render it a Total Loss or Constructive Total Loss.

Please see the Policy Wording Booklet for more policy details.

Insurance is sold through BCAA Insurance Agency and underwritten by BCAA Insurance Corporation.