# Replacement Car Insurance with Ultima Risk Solutions



## piano mom (Jan 18, 2012)

Today we drove our new Mazda CX-5 home  While doing insurance paperwork at the dealership, we were offered replacement car insurance with Ultima Risk Solutions. We decided not to make the decision there and told them we needed to think about it. Has anyone here bought such insurance? Basically, we would pay $1,700 for a 7 year plan where we would be reimbursed a brand new car if it gets totalled. They also would cover our deductible (up to $300 each time) should we make a claim i.e. cracked windshield etc. And they guarantee any repair done to our car would be with factory new replacement body parts.

www.ultimarisksolutions.com


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## the-royal-mail (Dec 11, 2009)

So basically they want you to pay for insurance twice? Remember you are already paying for annual auto insurance. Isn't that enough? 

Save your money.


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## Rusty O'Toole (Feb 1, 2012)

You have the right to insist on OEM repair parts no matter who your insurer is. They will not tell you this but it is well known in the garage and body shop business.

All insurance is overpriced for what you get. They must charge more than they pay out, or go broke. So the odds are always against you. I only buy insurance for things I can`t afford to lose. In other words, I will accept a certain, small loss to avoid a possible large loss, only if I can`t afford the large loss.

If you can afford to risk $300 and not go bankrupt, and if you can afford the depreciation on your car, then the $1700 insurance is a bad bet.


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## nobleea (Oct 11, 2013)

Most regular insurance policies will give you a brand new car if yours is totalled in the first 3 or 4 years anyways. This insurance sounds like more of a top up. Your main insurance would cover all or most of it, and this one would top up to be able to buy a new one. So you'd really only get a benefit between year 4 and 7, if the car was completely totalled. I assume it has to be a write-off. So you're getting a roughly 15K benefit (difference between car value at 5.5 yrs and new) for a cost of $1700. Which means, when accounting for time value of money and all that jazz, you need a 12% or better chance that you'll write off your car in years 4-7 in order to be worthwhile. That's a pretty high number considering most drivers in Canada will get in to a major accident only once in their lives.

General rule - any non-car item (including parts and add ons) being sold at a dealership is a rip off. Even if you wanted to get it, you could pick it up for 50% less elsewhere.


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## fraser (May 15, 2010)

A friend of mine who used to sell new cars told me that he made much more commission selling extending warranties, insurance, undercoat, fabric coat, and certain financing packages that he ever made on the car itself. He also quoted the 50 percent number to me. If the sales rep cannot sell it to you, then they have a 'second' go at you when you meet with business manager to complete the paperwork. I would run. Whose to say this insurance company will be in business next year?


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## piano mom (Jan 18, 2012)

Thanks guys, touch wood but we have only had a slight scratch on paint in the last 13 years we had our car. It is very unlikely that we will total our new one. We didn't buy any extended warranties nor undercoat.


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## houska (Feb 6, 2010)

nobleea said:


> Most regular insurance policies will give you a brand new car if yours is totalled in the first 3 or 4 years anyways.


Worth double checking. Our insco (Allstate) offers this as a special additional-cost rider on the insurance policy, not automatically.


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## MrMatt (Dec 21, 2011)

houska said:


> Worth double checking. Our insco (Allstate) offers this as a special additional-cost rider on the insurance policy, not automatically.


Depreciation waiver, and it's cheap (for the first year or two)


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