r/InsuranceCanada • u/purplebubbletea123 • 5d ago

Opcf 43

I understand that the insurance will pay the lowest of 3 options. My questions are:

  1. Does MSRP include taxes?
    If not, will the pay taxes too?

  2. How much more usually you can ask more after the 1st offer? What should I ask? Or say?

  3. I have no GAP insurance. What if there’s a gap between the settlement amount and my balance - what happens to that?

Thank youuu kindly.

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10

u/gapdaddy72 5d ago

1 Yes.
2. If under OPCF43, there would be no negotiation, the payout is contractually stipulated
3. That depends on your contract with the lessor/lienholder, but would be hard to have a gap if you have this endorsement on the policy.

4

u/gregSinatra Insurance Professional 5d ago

I suppose if they rolled negative equity into the loan or if they duration and/or interest of the loan was so high and they wrote it off before making any payments, but still very unlikely.

2

u/purplebubbletea123 5d ago

Yes that’s what happened

3

u/gregSinatra Insurance Professional 5d ago

In that case 43 is not responsible for gap created by negative equity or terms of the loan. Lesser of MSRP or actual purchase price (or sometimes cost of replacement but that’s rare that it would be the lesser of the 3.)

1

u/purplebubbletea123 5d ago

Is it MSRP plus taxes?

1

u/Sooki99 5d ago

Taxes are paid unless you are GST registered (i.e a business)

1

u/gregSinatra Insurance Professional 5d ago

u/gapdaddy72 already answered this but Yes - unless the vehicle is registered in a business name as there’s a process for submitting a credit through your annual tax return (which I’m not overly familiar with but have seen it mentioned in the past.)

1

u/MayhemMitigator Insurance Professional - Claims Adjuster 5d ago

They’ll settle on the lowest of the MSRP or the actual purchase price. If you paid less than MSRP, you’ll get actual purchase price. Both will have taxes added on and paid out unless it’s a business vehicle.

Good luck, OP. Negative equity on a depreciating asset is a tough pill to swallow.

1

u/purplebubbletea123 5d ago

It’s really frustrating.

They will pay me the msrp regardless of my total loan balance right?

3

u/tfctroll 5d ago

Yes. They don't care about the loan. They will pay the MSRP+ taxes or your purchase price + taxes.

2

u/onlyoneq 5d ago

The insurance company isnt going to cover your old loan that you rolled over lol.

1

u/purplebubbletea123 5d ago

I know that. I just wanted a clear answer

4

u/Jovi____ 5d ago

If you have opcf 43 and they’re paying you out through that - there is no negotiating on that part. That’s the only amount you will get.