FPQ 5 for luxury vehicles and EVs in Quebec in 2026
Tesla, BMW, Mercedes, Porsche, Audi: on valuable cars, the depreciation reaches 15 to 40% in 3 years. FPQ 5 protects up to $150,000 — here’s how to take advantage of it.
Get a quote on my vehicleLuxury vehicles and electric cars (EVs) share one characteristic: their value on the second-hand market is falling faster than that of entry-level cars. On an $80,000 model, a total loss in year 3 can be more than $25,000 to assume if you only have a standard FPQ 1 policy. FPQ 5 closes exactly this gap, for the entire duration of the contract.
Why depreciation is a major issue on these vehicles
| Segment | Depreciation 1 year | Depreciation 3 years | Potential Variance* |
|---|---|---|---|
| Compact Sedan (Civic, Corolla) | 10-15% | 25-30% | ≈ $8,000 |
| Luxury SUV (BMW X5, Mercedes GLE) | 20-25% | 40-50% | ≈ $40,000 |
| Sport / GT (Porsche 911, AMG) | 15-20% | 35-45% | ≈ $45,000 |
| EV (Tesla Model Y, Ioniq 5) | $15-25% | 30-45% | ≈ $25,000 |
*Difference between purchase price and 3-year cash value — what you would have to pay out of pocket without FPQ 5. 2026 estimates for total loss on financed vehicle.
The special case of electric vehicles
EVs have seen their value on the second-hand market fall faster than average since 2024, driven by:
- The continuous decline in the price of new (Tesla has adjusted its grids several times);
- The appearance of new models with a longer range that make the previous ones less attractive;
- Uncertainties about the health of the battery after 5-6 years;
- The end or reduction of certain government subsidies.
The practical result : a Tesla Model Y purchased for $68,000 in 2024 may be worth less than $45,000 in 2027 on the private market. Without FPQ 5, your insurer pays you this depreciated value in the event of a total loss.
Models frequently protected by an FPQ 5
Tesla Model 3 & Y
Values $45-75k — eligible for up to 84 months (if ≤$120k).
Tesla Model S / X
Values $100-135k — eligible for up to 60 months (over $120k).
BMW iX, X5, X7
Values $75-140k — strong impairment, FPQ 5 highly recommended.
Mercedes GLE, GLS, EQE
Values $85-145k — premium segment that is highly sensitive to depreciation.
Porsche Cayenne, Macan
Values $90-145k — eligibility up to 60 or 84 months depending on price.
Audi Q7, e-tron, RS
Values $80-140k — Audi EVs particularly sensitive to the used market.
$150,000 Cap: What You Need to Know
⚠️ Above $150,000: no FPQ 5
Vehicles with a purchase price (excluding taxes) in excess of $150,000 are not eligible for the Program. For a $180,000 Porsche Turbo or a Ferrari, you have to turn to other solutions (specialized endorsements, classic car insurance).
The broker’s advice
On an EV or luxury vehicle with a high foreseeable depreciation, always choose a term that covers at least the horizon of your financing. This is the period when the difference between the loan balance and the cash value is at its maximum.
Frequently Asked Questions — Luxury and EV
Is my Tesla eligible for FPQ 5?
Does FPQ 5 cover my EV battery?
Is it more expensive for a luxury vehicle?
Can I cover a Porsche 911 or a Ferrari?
Are post-purchase modifications (wheels, wrap) covered?
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