New Car Replacement Insurance in Canada 2026: FPQ 5, OPCF 43 & SEF 43

New car replacement — sometimes called “waiver of depreciation” — lets a policyholder replace a damaged or stolen vehicle with an equivalent brand-new model of the current year, ignoring depreciation. Each Canadian province offers this protection under a different name: FPQ 5 in Quebec, OPCF 43 in Ontario, and SEF 43 in the rest of Canada. This guide compares the three, their eligibility rules, and when one wins over the others.

Provincial comparison: FPQ 5 vs OPCF 43 vs SEF 43

Item	Quebec — FPQ 5	Ontario — OPCF 43/43A	Rest of Canada — SEF 43
Type	Chapter B — New car protection	Waiver of Depreciation Endorsement	Standard Endorsement Form 43
Vehicle max age	24 to 30 months, depending on insurer	24 months (OPCF 43) or 48 months (43A)	24 months typically
Used vehicle	Eligible if < 24 months	No — first owner only	Varies by province
Luxury vehicle cap	$150,000 with most insurers	$65,000 – $100,000 depending on carrier	$75,000 – $100,000 typically
Alternative	Endorsement 43A / 43D	OPCF 43A (5 years)	SEF 20 (limited depreciation)

Quebec: FPQ 5, Endorsement 43A and 43D

In Quebec, the Formulaire de Police du Québec — Chapter B (FPQ 5) governs new-car protection. Three variants exist:

• FPQ 5 — brand-new replacement for 24–30 months depending on insurer, usual cap of $150,000.
• Endorsement 43A — new-model replacement or payout of the original new value (typical for fast-depreciating vehicles).
• Endorsement 43D — variant based on purchase price rather than the year’s new value.

Ontario: OPCF 43 and OPCF 43A

In Ontario, the endorsement is called Ontario Policy Change Form 43 — Waiver of Depreciation. Most insurers offer it for a new vehicle owned by the first purchaser for 24 months. The OPCF 43A variant extends protection to 48 months for an additional premium. The cap in Ontario is lower than Quebec’s — typically $65,000 to $100,000 depending on the carrier.

Rest of Canada: SEF 43

In the other provinces (Alberta, Saskatchewan, Manitoba, Nova Scotia, New Brunswick, PEI, Newfoundland & Labrador), the Standard Endorsement Form 43 (SEF 43) plays the same role. Terms vary by province and insurer, but the logic is identical: new-car replacement for the first 24 months, monetary cap, first-owner vehicle.

When is new-car replacement worth it?

• Financed or leased new vehicle — the protection covers the gap between the depreciated value and the loan balance.
• Fast-depreciating vehicle — premium electric, sport, or luxury (Tesla Model S, BMW i5).
• Household’s first new car — get an equivalent model back after a total loss without negotiating with the insurer.

Average cost across Canada in 2026

Province	Indicative annual premium	% of auto premium
Quebec (FPQ 5)	$80 – $180	6 – 12 %
Ontario (OPCF 43)	$120 – $250	6 – 10 %
Other provinces (SEF 43)	$100 – $220	7 – 11 %

Cost depends on insured value, model, expected annual mileage, and region. Request an online comparative quote to get an accurate figure for your vehicle.

Frequently Asked Questions

Is FPQ 5 mandatory in Quebec?

No. FPQ 5 is an optional add-on to Chapter B coverage. It is strongly recommended for new vehicles under 24 months — especially financed or leased ones — but remains optional.

Can I transfer my FPQ 5 to a new vehicle?

Yes, most insurers allow transferring the protection to a new eligible vehicle (under 24 months, first owner, value within the cap).

What’s the difference between OPCF 43 and OPCF 43A?

OPCF 43 covers 24 months of new-car value; OPCF 43A extends this to 48 months for an additional premium of about 30–50 %.

Can a used vehicle qualify for new-car replacement?

In Quebec (FPQ 5): yes, if the vehicle is under 24 months at policy inception. In Ontario (OPCF 43): no — protection is limited to the first owner of a new vehicle.

Does FPQ 5 cover electric vehicles like a Tesla?

Yes, subject to the insurer’s value cap (typically $150,000 in Quebec). Some Tesla models exceed this cap and require a specialty policy.

What exactly does new-car replacement cover in case of a total loss?

The insurer pays the cost of an equivalent brand-new vehicle of the current year, including the same options. You do not receive the depreciated market value or the purchase price — you receive the current price of an equivalent model today.

What happens after the FPQ 5 / OPCF 43 period expires?

Coverage reverts to depreciated market value at the loss date. Some drivers then opt for Endorsement 43A (Quebec) or OPCF 43A (Ontario) to extend protection.

How can I compare FPQ 5 / OPCF 43 offers across insurers?

Terms (cap, max age, deductible, mileage) vary from one insurer to another. Use our online comparator to receive multiple quotes in 3 minutes.