Insurance to cover appreciation of Model Y

[Mark-YSR]

I bought my Y SR in February 2021. Since then, the replacement cost has skyrocketed from the original $56k (CAD) plus tax to over $80k plus tax (for a used SR RWD in Canada).

I'm in Ontario with Intact Insurance. Reading through my documents, they will pay the lesser of the purchase price or replacement cost. Obviously the purchase price is a lot lower so that's what I'd get in event of a total loss. I would be significantly short on cash to replace the vehicle.

I spoke to my broker and they were a. Shocked that the price was more than purchase price (had to explain the concept a few times) and b. Explained that there were no options to cover the appreciation.

Has anyone found a solution to this problem? I am obviously willing to pay for additional insurance.

 

[ThunderBay3Y]

I don't think I've ever really seen an insurance policy cover the replacement cost at more then your initial purchase price.

When I insured my Model 3 I had an option to eliminate depreciation (so in the event of a total write off within 3 years I'll get 100% of initial cost of the car back). But as always new models will go up in price so I still wouldn't likely get enough to purchase a new one 100%. Im with AllState.

 

[ThunderBay3Y]

and this would be ripe for fraud. Imagine I could sell my car for $70,000 as that is what its worth on the market, or somehow destroy it and get $90,000 from insurance.

 

[Mark-YSR]

It's not a case of wanting insurance to cover more than it's value. I'm looking for like for like coverage. I have the coverage that removes depreciation for 4 years but in this case a like for like replacement, Y SR for Y SR with similar mileage and features is $25-30k more than they will pay.
I would say the depreciation elimination is more ripe for fraud. If my car lost 50% of it's value and I get 100% of what I paid in the event of an accident, wouldn't people have incentive to see that happen rather than like for like.

 

[Bobby_Dazzler]

Did you ever get this sorted? I was thinking the same with FSD costing £6800 now in the uk and likely to go up in the future this I could be substantially out of pocket to get a car to the same spec in the future

 

[enemji]

I bought my Y SR in February 2021. Since then, the replacement cost has skyrocketed from the original $56k (CAD) plus tax to over $80k plus tax (for a used SR RWD in Canada).

I'm in Ontario with Intact Insurance. Reading through my documents, they will pay the lesser of the purchase price or replacement cost. Obviously the purchase price is a lot lower so that's what I'd get in event of a total loss. I would be significantly short on cash to replace the vehicle.

I spoke to my broker and they were a. Shocked that the price was more than purchase price (had to explain the concept a few times) and b. Explained that there were no options to cover the appreciation.

Has anyone found a solution to this problem? I am obviously willing to pay for additional insurance.

In USA, we always get the Market Replacement Cost ie what it would take to buy the car with the same specs, condition and mileage .

For example, my Lexus got totalled after 10 years and 200,000 miles. Book value before COVID-19 WAS $2500. As this claim was made in the COVID-19 timeframe with used cars costing higher, I actually got paid $12000 for it.

 

[Mark-YSR]

In USA, we always get the Market Replacement Cost ie what it would take to buy the car with the same specs, condition and mileage .

For example, my Lexus got totalled after 10 years and 200,000 miles. Book value before COVID-19 WAS $2500. As this claim was made in the COVID-19 timeframe with used cars costing higher, I actually got paid $12000 for it.

But was that less than purchase price?

That's where the issue is with my insurance. They'll pay out up to what I paid for the vehicle which is less than the current value.

Edit: Based on current listing prices the delta between price paid and what I would get is rapidly closing so the problem is essentially solving itself. Gap is now $12k or so.

 

[enemji]

But was that less than purchase price?

That's where the issue is with my insurance. They'll pay out up to what I paid for the vehicle which is less than the current value.

Edit: Based on current listing prices the delta between price paid and what I would get is rapidly closing so the problem is essentially solving itself. Gap is now $12k or so.

Ughhh…. Get another insurance

Mine will pay current market price regardless of what I paid for it. My purchase price is irrelevant.

 

[Mark-YSR]

Why would insurance pay you more than market price? Help me understand.

I was looking for insurance that would cover the difference between the cost I paid for my Model Y SR (CAD$56k plus tax) and the current market price (peaked at $86k now down to $69k).
The max they would pay out in the event of a loss would be what I paid and not what it would cost to replace with a similar vehicle. They wouldn't cover the amount it appreciated.
The insurance I want would cover the gap between what I paid and replacement cost if I were to experience a total loss.

 

[enemji]

I was looking for insurance that would cover the difference between the cost I paid for my Model Y SR (CAD$56k plus tax) and the current market price (peaked at $86k now down to $69k).
The max they would pay out in the event of a loss would be what I paid and not what it would cost to replace with a similar vehicle. They wouldn't cover the amount it appreciated.
The insurance I want would cover the gap between what I paid and replacement cost if I were to experience a total loss.

Mine will pay current market price regardless of what I paid for it. My purchase price is irrelevant.

 

[Mark-YSR]

Mine will pay current market price regardless of what I paid for it. My purchase price is irrelevant.

That's all I'm looking for. My current insurer caps payouts at a maximum of what I paid even if the market price for a similar vehicle of the same make and model is more. Of course if it's less, they pay less.
I had to explain the fact that my 1.5 year old vehicle was worth more than I paid for it to my insurance agent a few times before they understood. They kept replying that the value goes down when you drive it off the lot. Couldn't understand that my Tesla was worth more.

 

[enemji]

That's all I'm looking for. My current insurer caps payouts at a maximum of what I paid even if the market price for a similar vehicle of the same make and model is more. Of course if it's less, they pay less.
I had to explain the fact that my 1.5 year old vehicle was worth more than I paid for it to my insurance agent a few times before they understood. They kept replying that the value goes down when you drive it off the lot. Couldn't understand that my Tesla was worth more.

That is funny & crazy and head I win, tails you lose sort of game play

 

[Cuttin]

So I have been staying up many nights trying to figure a good solution. Went with a company that will pay upto 110percent over msrp of my vehicle. They are not specific whether that's the msrp of my vehicle when I got it or now.

Basically in my research, some companies do pay what it would cost to get a similar car and some do not. New car replacement is the term. Geico and progressive do not. Njm and allstate and Hanover do.

Attached is my "book".

I'm PETRIFIED. Totaled, not my fault, my several year old MX few weeks ago. Have new MX I reserved last year for 105k. If this one gets totaled, I'd need 130k to get the same car. I THINK my policy would cover it.

Any insights would help, in writing would be even more helpful.