Protect Your Vehicle’s Value with SEF 43R, SEF 18, and Optiom Coverages

We’re committed to helping you protect your vehicle investment against Alberta’s unpredictable conditions—think hailstorms, icy roads, and more! Vehicle replacement endorsements like SEF 43R, SEF 18, and Optiom Coverages can bridge the gap between your vehicle’s depreciated value and its replacement cost.

Let’s break down each option, provide some examples, and explain how they can benefit you.

SEF 43R: Limited Waiver of Depreciation

SEF 43R, also known as the Limited Waiver of Depreciation, ensures that if your new vehicle (purchased brand new from a dealership) is declared a total loss within 30 months, your insurer will pay the replacement cost without factoring in depreciation. This could mean receiving the original purchase price or the manufacturer’s suggested retail price (MSRP)—whichever is less.
Note that SEF 43R doesn’t cover tires, batteries, or previously unrepaired parts, and typically costs $50–$150 annually to add to your policy.

Example: You bought a new SUV for $45,000 in 2023. In 2025, a hailstorm in Didsbury totals your vehicle. The depreciated value might be $35,000. With SEF 43R, you’d receive $45,000, minus any applicable deductibles.

SEF 18: Replacement Cost Endorsement

SEF 18 provides replacement cost coverage for new vehicles up to 60 months (5 years) from the purchase date. In the event of a total or partial loss, SEF 18 reimburses based on the current MSRP of a new, equivalent model rather than the depreciated market value or original purchase price, ensuring you can replace your vehicle with the latest version. This extended timeframe and flexibility make it a strong option for new car owners driving on Alberta’s rural roads where hail or collisions are common.

Example: Imagine you purchased a sedan for $38,000 in 2022. In 2025, a collision on Highway 2 near Didsbury results in a total loss. The market value might have dropped to $28,000, and the original price was $38,000, but the current MSRP for the same sedan has increased to $42,000. With SEF 18, your insurer would cover the $42,000, allowing you to replace your sedan with the newest model.

Optiom Coverages: Vehicle Replacement and Optiom Prime

Optiom offers flexible vehicle replacement solutions for both new and used vehicles, filling gaps left by standard policies or SEF endorsements.

Optiom Vehicle Replacement Coverage

Optiom’s core Vehicle Replacement Coverage ensures that if your vehicle is written off, you receive the difference between its market value at the time of loss and its replacement cost.
For new vehicles (under 5 model years), this can be up to $80,000 over your primary insurer’s payout, with coverage lasting up to 7 years.
For used vehicles (up to 10 years old), it covers up to $60,000 for up to 5 years, based on the vehicle’s value at policy inception.
Any payout first goes toward outstanding liens, with the remainder available for your replacement vehicle purchase.

Example (New Vehicle): You bought a new truck in 2023 for $60,000 (MSRP). In 2025, it’s totaled in a storm, and your primary insurer pays the market value of $45,000. With Optiom’s new vehicle coverage, you’d receive an additional $15,000 (the difference between the market value and the MSRP of the newest model), helping you replace your truck without dipping into savings.

Optiom Prime Enhancements

Optiom Prime adds optional benefits to enhance your coverage, available for both new and used vehicles at an additional premium. These include:

• Rental Vehicle Reimbursement Benefit: If your primary insurance’s rental coverage runs out before your vehicle is repaired or replaced, Optiom Prime reimburses additional rental costs—up to $5,000 if your vehicle is replaced, or $2,500 if repaired.

• Vehicle Value Appreciation Benefit: For used vehicles, this increases your vehicle’s value by 5% annually, up to the time of loss.

• Additional benefits like Partial Loss O.E.M. Benefit, Key Fob Reimbursement, and Partial Loss Deductible Reimbursement are also available.

Example (Rental Vehicle Reimbursement): After a collision, your car needs repairs that take 30 days. Your primary insurance covers a rental car for 14 days, but you’re still without your vehicle for another 16 days. Optiom Prime steps in, reimbursing up to $2,500 for the additional rental costs, ensuring you’re not stranded in rural Didsbury.

Optiom Total Loss Limited Indemnity (TLLI) Benefit

As an alternative to the Vehicle Replacement Coverage, Optiom offers a TLLI Benefit, which provides a fixed payout based on your vehicle’s value at the time of policy inception. For example:

• Vehicle value $50,001–$60,000: $4,500 payout.

• Vehicle value $150,001–$175,000: $10,500 payout.

• Vehicle value $275,001–$300,000: $15,000 payout.

This option covers used vehicles with no requalification, regardless of previous owners, making it accessible for many drivers.

The best part - these policies are cheap!

Example (TLLI Benefit): You insure a used luxury car valued at $80,000 in 2024. In 2025, it’s totaled, and your primary insurer pays the market value of $65,000. With Optiom’s TLLI Benefit, you’d receive an additional $6,500 (based on the $70,001–$80,000 value bracket), giving you $71,500 toward a replacement vehicle.

Reach Out to Us!

Interested in adding SEF 43R, SEF 18, or Optiom Coverages to your policy? Contact McDonalds Insurance at 403-335-3442 or email office@mcins.ca to discuss your options and get a personalized quote. Protect your vehicle’s value today—don’t wait until it’s too late!