Replacement insurance when buying a vehicle… I’m getting it through my broker!

Buying a new or used vehicle should be a joyful and exciting event for you! To ensure this, Assurances Multi-Risques would like to offer you its best advice so that you are well-equipped when the time comes to purchase your new vehicle and ITS REPLACEMENT INSURANCE at a car dealership.

After purchasing your vehicle, the dealer will introduce you to their sales manager, who will collect the information needed to assess your credit rating and determine whether you are eligible for financing for your new car. The sales manager will then offer you a few additional products, including replacement insurance. Should you take out this insurance with the dealer? Is the sales manager (F & I) the best person to advise you on insurance? Assurances Multi-Risques wants to provide you with the right information to help you avoid insurance problems, but above all to give you the tools you need to make an informed decision when you are offered replacement insurance.

Did you know that consumers pay 66% MORE for replacement insurance at a car dealership?

Last May, the Financial Markets Authority published its 2015 report. According to the Authority, policyholders who took out replacement insurance with a car dealer paid 66% more than they would have with an insurance broker. To avoid this, we recommend that you contact an insurance broker before accepting an offer from a car dealership. If you decide to purchase replacement insurance from your car dealership, make sure that your sales manager provides you with a distribution guide and the necessary explanations to understand this insurance product.

Did you know that only a certified representative can provide you with car insurance advice?

In certain situations, the sales manager collects your information and takes it upon themselves to give you car insurance advice. Only a certified representative can provide you with car insurance advice. In addition, the agent or broker has a duty to collect your data personally in order to provide you with an insurance quote. Remember that the sales manager can only offer you the replacement insurance product (FPQ5) and cannot provide car insurance advice at any time.

Did you know that car dealers have rules to follow when offering you insurance? According to the law…

1. The sales manager is required to explain and inform you that there are other similar insurance products on the market, including those offered by insurance brokers. — Section 430
2. The sales manager has a duty to disclose his commission to you if it exceeds 30%. — Section 431
3. The sales manager is responsible for explaining how to file a claim and the time limit set by the insurer. — Section 434
4. The sales manager is required to provide you with the distribution guide before you make your purchase, and when he offers you the product, you must have the guide in your possession. — Section 435
5. The sales manager has no right to pressure you into taking out replacement insurance with him. Under no circumstances can they pressure you by saying that if you don’t take out insurance with the dealer, your interest rate will be higher, or that approval of your loan is conditional on you taking out insurance with them. Please note that you are free to take out insurance with whomever and wherever you wish. — Section 439
6. The sales manager is required to provide you with written notice explaining that you have 10 days to cancel the replacement insurance policy duly signed with the insurer by registered letter. The director is required to give you this letter. — Section 440

Please note: You can file a complaint with the Financial Markets Authority if you have had or are currently having a bad experience with a sales manager. In fact, Assurances Multi-Risques strongly recommends that you do so, as this type of behavior must stop.

Did you know that there are various insurance products available for vehicle purchases?

Which product should you choose… replacement value or replacement insurance? Assurances Multi-Risques firmly believes that your insurance professional should offer you both insurance products. You should weigh the pros and cons of these two insurance products and, after careful consideration, decide which product is best for you. For this reason, we strongly believe that you should never purchase this type of insurance from a car dealership, but rather from an insurance professional, specifically an independent insurance broker. To help you make your decision, we recommend reading our article on replacement insurance.

Our insurance brokers are professionals and specialists in auto insurance. All our representatives have studied insurance, are licensed by the Financial Markets Authority, and ensure that they continue their professional development every year. We advise you based on our area of expertise: insurance. When you buy a vehicle, we are not in a position to advise you on the type of vehicle to purchase, as this is not within our area of expertise. Our motto: to each his own profession! Buy your vehicle from your dealer and get your insurance from your property and casualty insurance professional!