Replacement cost insurance is a supplementary auto insurance protection that allows you to replace a stolen or seriously damaged vehicle with a new one, in a model equivalent to the insured vehicle. The guarantee comes into place in the case of a stolen car that is not found, or when a damaged vehicle cannot be repaired. This protection is normally limited to a 48 to 60 month contract period. Beyond that, the vehicle will be too old and can no longer be insured for replacement value.
In the case of a total loss, the guarantee corresponds to the price of a new vehicle with the same features, equipment and accessories. If this vehicle is not available, a new vehicle of the same nature and quality that has similar accessories and equipment. If there is no replacement, the guarantee corresponds to the price paid for the vehicle by the insured (who must be the actual owner of the vehicle), without exceeding the current price at the day of purchase, or the price at which the insured may, at the time of the loss, purchase a new vehicle with the same characteristics, quality and similar equipment and accessories.