New Car Replacement
Carrier Specific Terms:
If Your Car is Totaled 3 mo. or Under
Plain English:
Totaled your car? Replace it with a brand new one instead of a used one!
In a total loss accident, many insurance policies will pay you the depreciated value of your vehicle. This may only leave you enough money to replace your car with a used one. With new car replacement coverage you will receive a check that will allow you to purchase a brand new vehicle of the same make and model.
Example:
Sam is cruising down the road in his brand new vehicle. He glances into his rearview mirror for a split second when the car in front of him slams on their breaks - his new vehicle is totaled! Because Sam has new car replacement coverage, his insurance company sent him a check that will allow him to purchase a brand new vehicle.
Our Take:
If you’re purchasing a brand new vehicle from a dealership and if new car replacement coverage is offered at a reasonable cost, this option can be a worthwhile investment.
