In Saskatchewan, you automatically get a degree of car insurance when you buy plates for your car. However, you can also buy additional coverage that offers more protection for the car. In the event of an accident, you might have more help available to cover your losses. Many supplemental policies will offer physical damage protection and include replacement cost insurance. Why is this important coverage for you?
Replacement cost coverage doesn't come with all car insurance policies. Yet, it can provide a benefit, especially for new car owners. Coverage can provide you with more money that can help you should your car prove a total loss.
Understanding Replacement Cost Insurance
Car wrecks or other damaging incidents will cost you money. You will probably need to make a claim on your car insurance policy to pay for the damage.
If the car is a total loss from an accident, then the car insurance company might determine to total the vehicle. If they do, they will label the car as a complete loss. They will provide you a sum of money to replace the vehicle. However, they might not provide you with the full value of the lost car.
Saskatchewan's Government Insurance will only provide collision insurance to a depreciated amount. That will not match the full value of the vehicle.
Cars tend to depreciate quickly. Even if you have only owned a car a week, it will have less value than it had when you picked it up from the lot. You thus might not have enough money to buy a new car. You might lose a virtually new car, but only get a lower value for the damaged item.
On the other hand, replacement cost insurance can help you recover the full value of the lost vehicle. Therefore, you'll get the money to buy a new car of equal or lesser value. So, if a fire were to break out in your six-month-old car, then you'll probably have considerable help to get a new car.
To get this additional insurance coverage, you can contact your Heritage Insurance agent. A supplementary policy can work alongside your SGI insurance to help you have more help.
Replacement cost insurance will likely cost a bit more than basic SGI insurance. However, it will also provide you with extra coverage in the even of a totaled car. Therefore, that's likely a lower cost to you when you need to get a new vehicle.
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