Debunking common insurance myths – I will get the full value of my vehicle back if it is written-off after an accident

FALSE

You will rarely get the full original value of your vehicle back if it is written-off after an accident. For most vehicles, you will get back the cash value of your vehicle at the time of the accident. As we all know, cars depreciate quickly, starting from when you drive your car off the dealership property.

The cash amount you receive back will also reflect additional depreciation value for kilometres driven and any damage that existed on the vehicle prior to the accident. If you are the first and only driver of your vehicle and your vehicle is still relatively new, some insurance companies offer auto insurance policies that waive depreciation based on the lesser of either the manufacturer’s suggested retail price or what you paid for the vehicle (for example, if you purchased your vehicle at a sale price).

However, even in these instances, you will not get back any warranty or financing costs you’ve incurred. For further information, contact a BrokerLink broker.