Case Studies

Automobile

Situation #1
Amanda owns a vehicle and has a Quebec driver’s licence. She decides to go to Florida by plane and rents a vehicle from a company located close to the airport. In signing her rental contract, she is contractually bound to bring the car back in the same condition; otherwise she will have to pay for the repairs. Amanda declines the insurance coverage offered by the rental company. On her way to the hotel, she loses control of the vehicle and hits a lamp post. The damages to the car are estimated at $1,500.

Solution
GPL had made sure that the Q.E.F. no. 27 endorsement was added to Amanda’s Q.P.F. no. 1 policy, since she had advised our office, prior to her leaving on her trip, that she would be renting a vehicle in the United States. This endorsement included a $250 deductible on Chapter B1 (All Risks). The Q.E.F. no. 27 applies here since it covers automobile liability for damages caused to non-owned vehicles even though her own car was available and in good working order. Furthermore, the insured must be at least partly responsible for the endorsement to take effect. Amanda will only have to pay the $250 deductible; her insurance company will cover the balance. Regarding damages to the lamp post, Chapter A of Amanda’s automobile policy will cover those damages.

Situation #2
Paul bought a luxury sedan which cost $95,000 a year ago. During a winter storm, he lost control of his car on the highway and the vehicle was declared a total loss. In the last year, his car model was renewed by the maker and is now sold $107,000. The model year of Paul’s vehicle is no longer available with car dealers as a “new” model.

Solution
Upon issuing Paul’s automobile insurance contract, GPL suggested the addition of endorsement Q.E.F. no. 43E in consideration of an additional premium. In case of total loss, this endorsement entitles the insured to a new vehicle with the same characteristics, equipment and accessories as the original vehicle. Therefore, provided Paul decides to replace his car, he will benefit from a same type vehicle, even though it is now more expensive.

Home

Situation #1
John owns a home in the Montreal suburbs. Over the last couple of days, he’s been hearing an abnormal whistling sound outside his residence. After verification with the City’s road network employees, John learns that there is a leak in his drinkable water line. To add to his troubles, the break is located under the driveway to his garage, which is made of concrete pavers. The cost of repairs is $9,500.

Solution
GPL assurance had made sure the insured’s contract included the endorsement covering breaks to the water line of his residence, since John had mentioned he had invested a lot of money in the landscaping of his home. This endorsement reimburses the demolition expenses for the repairs of the water line as well as the reconstruction of his garage entrance. Also, the endorsement does take into account any depreciation, and affords coverage even though there were no initial damages to the house or to the grounds/lawn (prior to commencing the work).