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A shiny new car straight from the showroom floor can be an attractive target for thieves. Fortunately, if you have comprehensive car insurance, you could be entitled to a brand-new replacement if your car is written off or stolen within months of becoming yours.
New car replacement is a type of coverage that’s included with some comprehensive coverage policies. If yours doesn’t include it, it’s also available as a policy add-on.
Under most policies for new car replacement, if your brand-new vehicle is stolen or declared a total loss, it’s replaced with another new vehicle of the same make and model. Unlike standard comprehensive coverage that pays to repair or replace your vehicle, new car replacement also covers the cost of car depreciation.
Compare insurers that offer this perk on your policy or comprehensive coverage for free or an extra fee.
Eligibility will vary slightly by insurer, but expect to meet basic requirements:
The process varies by insurer. In some cases, your insurance company transfers your policy to the new vehicle. With others, your coverage ends and you must obtain a new policy for your replacement car. Carefully read your policy’s terms and conditions to avoid any surprises down the road.
In most cases, your vehicle is replaced with one that’s as close to your current model as possible:
Here too, limitations vary by insurer. But you’ll likely need to meet further requirements that relate to your car, your policy and how it was damaged beyond repair:
If you’ve grown attached to your car and want to be sure you can drive it — or one like it — for as long as you can, you’ve got options when it comes to protecting it:
Compare car insurance companies near you.
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Combining your liability protection policy with collision and comprehensive insurance can help improve your coverage, but may not fully cover the cost to replace your vehicle. New car replacement insurance pays to replace your vehicle after a total loss, including the cost of depreciation. So instead of getting a vaguely similar vehicle, you’ll get the same make and model. Get quotes from multiple insurers to find a policy that can cover your new vehicle at the best price.
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If you have New car replacement and your car is a total loss do they play it off and replace your car with a new car that is paid for or do you still owe for it
Hi Steven,
Thanks for your inquiry.
If your brand new car is declared a total loss or stolen and you have “new car replacement” in your insurance coverage. Your insurance provider will replace it with another new vehicle of the same make and model.
I hope this helps.
Kind regards,
Bella