Buying a new car is exciting—but what happens if it’s totaled in an accident without the right auto insurance coverage? For example, without the right coverage, you could lose thousands to depreciation, leaving you financially vulnerable. ICBC’s New Vehicle Replacement Plus (NVR+) policy promises to protect you from that financial hit, but is it really worth the cost? Even more importantly, where you buy it could mean paying way more than you need to.

Here’s what you need to know before signing up.

What Is ICBC’s New Vehicle Replacement Plus (NVR+)?

ICBC’s NVR+ policy is an optional coverage that helps protect new vehicle owners from depreciation in case of a total loss. If your vehicle is written off, NVR+ allows you to:

• Replace it with a brand-new model of the same vehicle.
• Choose a different new vehicle of equal value.
• Take a cash payout based on the original manufacturer’s suggested retail price (MSRP), adjusted for inflation.

The information provided on this page is crucial for understanding the NVR+ policy.

Without this coverage, ICBC would only compensate you for your car’s depreciated value—not what you originally paid, leaving you less covered.

Additional Coverage for Repairs

If your vehicle is repairable, ICBC will cover the cost of repairs using new parts from the original manufacturer, if available. This ensures that your vehicle is restored to its original condition, rather than being repaired with used or aftermarket parts.

To get these repairs covered, you will need to file a claim with ICBC, providing all necessary details about the incident. Here are some tips to ensure your repairs are covered: always document the damage thoroughly with photos, keep all receipts and records related to the incident, and follow up regularly with your ICBC adjuster to stay informed about the status of your claim.

Eligibility Requirements

Not all vehicles qualify for NVR+. This coverage is only available for vehicles that:

• Are within the first two model years.
• Weigh less than 5,500 kg when fully loaded.
• Have Collision and Comprehensive coverage, or Collision and Specified Perils coverage.

Additionally, your driving experience can impact your eligibility and the premiums you pay for this coverage. Once you obtain a full driver’s license (Class 5), there is no need to display a sign on your car, which can also influence your premiums.

Buying Through a Dealership vs. a Broker: Why It Matters

You can also buy New Vehicle Replacement policies from Private insurers such as Optiom and Drivesure.

When it comes to private insurance, many customers don’t realize that where they buy their vehicle replacement coverage affects how much they pay.

• Buying through a dealership: Some dealerships charge brokers a referral fee, which may be passed on to the customer in the form of a higher policy price. For example, buying through a dealership can result in higher costs due to these referral fees.
• Buying through an insurance broker: Brokers offer the same ICBC coverage, but without the added dealership referral fee. This means you may get the same protection for less.

If you’re considering this coverage, it’s worth checking with your insurance broker first to understand the services they offer before agreeing to anything at the dealership.

How Much Does It Cost?

ICBC’s NVR+ policy doesn’t have a fixed price—the premium varies based on factors like your vehicle’s make, model, and your driving history. While estimates suggest around $850 or more per year, actual costs vary significantly based on the individual policyholder’s circumstances.

Since this coverage is optional, weigh the cost against the potential financial loss if your vehicle is written off.

When Is It Worth It?

NVR+ is most valuable for:

• New vehicle owners who want to be fully protected from depreciation.
• Luxury and high-end car buyers, where depreciation could mean losing tens of thousands of dollars.
• Long-term owners who plan to keep their vehicle for several years.

For example, a new vehicle owner can benefit from the NVR+ policy by avoiding significant depreciation losses in the first few years, while a luxury car buyer can protect their investment from losing substantial value. Long-term owners can ensure their vehicle retains its value over time.

Potential Downsides

Even though NVR+ offers financial protection, consider these drawbacks:

• Premium costs vary and can be expensive – At around $850 or more per year, costs can add up over time.
• Depreciation still applies over time – The payout is more generous than standard insurance, but after a few years, the vehicle’s replacement value may not fully match its original cost.
• Higher costs at dealerships – As mentioned, buying through a dealership can be more expensive due to referral fees.

A useful tip is to compare different policies and consider higher deductibles to lower your premium costs.

Are There Alternatives?

If you’re not eligible for NVR+, ICBC offers other property coverage options:

• Limited Depreciation Endorsement: This option reduces the impact of depreciation but doesn’t fully replace your vehicle.
• Replacement Cost Coverage: This coverage ensures your car is repaired with brand-new parts without depreciation deductions.

For example, if your vehicle is damaged in an accident, the Limited Depreciation Endorsement can minimize the financial loss due to depreciation, while the Replacement Cost Coverage can ensure that all repairs are done using new parts, maintaining the value of your car.

Before purchasing NVR+, it’s worth comparing these alternatives to determine what best fits your needs.

How King Insurance Can Help

Choosing the right insurance coverage can be complicated, but you don’t have to navigate it alone. At King Insurance, we help drivers access their options and find the best policies at the best prices—without unnecessary fees or add-ons. The information provided on this page is crucial for making informed decisions about your insurance coverage.

Our team of experienced brokers can:

• Provide unbiased advice on whether NVR+ is right for you.
• Compare ICBC’s coverage options to find the best value.
• Ensure you’re not overpaying by avoiding unnecessary dealership markups.

If you’re considering vehicle replacement coverage, speak with a King Insurance broker today to make sure you’re getting the protection you need at the right price.

Contact us today to discuss your options.