What is New Car Replacement Insurance?

New Car Replacement Insurance

Should you get new car replacement insurance to protect your investment?

When you buy a new car, you expect it to last you. However, accidents happen – whether or not you’re in your new car. Fortunately, you don’t have to lose out on your car when an incident happens – new car replacement insurance is there.

What is New Car Replacement? 

Buying a brand-new car is a big investment that starts depreciating the minute you drive it off the lot. In the event of a total loss, many insurance policies will give you less than what you paid for it because of this depreciation.

If your totaled car is under one year old and has less than 15,000 miles, New Car Replacement is an optional coverage for your auto insurance policy that provides you with the money for a brand-new car, not just the depreciated value of your old car.

The benefits of getting new car replacement insurance include:

  • Get money for a replacement car that’s the same model year as your totaled car.
  • Peace of mind in avoiding the financial loss associated with owing more money on your car than it is worth.
  • Not having to worry about replacing your totaled car with an older model of lesser value.

What is Auto Gap Insurance? 

When your car is deemed a total loss, and you owe more money on it than it’s assessed to be worth, gap insurance will cover the remaining amount you owe. Gap insurance is generally an optional coverage that you can purchase at the same time as your car. It does not provide coverage for a newer car.

Are you considering adding new car replacement insurance to your policy? Contact insurance experts Perry & Carroll in Elmira, New York for all of your car insurance coverage needs.