Get Cheap New Car Replacement Insurance

Protect your investment with New Car Replacement Insurance! If your new vehicle is totaled in a covered accident, standard coverage may only pay for its depreciated value—but with New Car Replacement, you’ll receive enough to replace it with a brand-new car of the same make and model. Don’t let depreciation leave you short; safeguard your ride and drive with confidence knowing you’re covered for the unexpected.

If you are bringing a new car home, check with your friendly neighborhood Acceptance agent to find out the best and most affordable way to full protect it.

New car replacement insurance covers your new car in the event it’s stolen or otherwise considered a total loss, such as from an accident or another covered event like a fire. The policy pays for the replacement of the same make and model of your vehicle as your lost one (or equivalent).

Once you drive your brand-new vehicle off the lot, it depreciates. Your car may lose as much as 10% of its value — or more, depending on the car — after you’ve owned it for just one year. This coverage pays for the cost of buying another new car rather than just paying for your vehicle’s depreciated value.

This type of auto insurance is typically only available for a specific time, and you must purchase it within the first year of your car ownership. Also, it comes in the form of an add-on to your full policy.

By adding on this coverage, you can expect your premium to increase anywhere from 5% to 10%, depending on your insurer and the type of car you’re insuring.

As an example, if your full coverage costs you $2,000 per year, your new car insurance will likely increase your yearly premium from about $40 (just over $3 per month) to about $200 (just over $16 a month).

These few extra dollars each month can add up to substantial savings if your car is ever stolen or totaled due to an accident or other loss. And knowing you’re covered can provide peace of mind, which is priceless.

Full coverage pays out the amount your car was worth at the time of loss — its depreciated value. So if you crash your car with only full coverage, you’ll get a portion of its new car value.

The new car replacement portion of your policy will give you the money to buy a new car of the same make and model as the one you lost. If it costs $40,000 to buy a new car to replace your lost one, you’ll get enough to cover it after you pay the deductible.

No, these two add-ons are different. Guaranteed auto protection — also known as GAP — covers the difference between your car loan balance and the depreciated value of your vehicle. This helps you if your car is declared a loss and you owe more than it’s worth.

New car replacement coverage pays you what it would cost to buy a new version of your totaled vehicle. This option is only good for a designated period after you buy your car; check with your agent to see if you’re eligible. You can buy this add-on even if you don’t have a car loan.

This coverage is usually good for two to three years. Once new car replacement coverage expires, or if you’re ineligible to buy it but paying off a loan, GAP coverage may be a good option for you.

If you total your new car without new vehicle replacement insurance, your insurer will pay for the depreciated value of your car if you have collision coverage. If you’re still paying off a loan for your car purchase, you’ll be stuck paying the loan on your totaled car without receiving enough money to replace your new car with the same make and model.

Here’s an example:

• You purchase your car for $50,000
• After one year, you total your car in a crash
• Without new car replacement insurance, your insurer (under your full policy) will pay you $45,000

With new car replacement coverage, your insurer will give you enough money (minus your deductible) to get a brand-new car to replace your old one.

To be eligible to buy new vehicle replacement coverage, there are some guidelines, including:

• Your vehicle must be a purchase, not a lease
• You must be the original owner
• You typically must have both collision and comprehensive on your vehicle

Some carriers cover new vehicles for up to five years after your purchase. Other insurers may cover up to a certain mileage — for example, up to 15,000 miles.

Some insurers do not offer new car replacement coverage. Instead, they recommend you purchase GAP coverage.

Yes, new car replacement coverage carries a deductible you’ll be responsible for before your insurer pays out. As with other coverage, however, the lower the deductible, the higher your premium, and the higher the deductible, the lower your premium.

Be sure to set your deductible at a price you can afford. Ask your agent about available car insurance discounts to help bring your premium payments down.

Can I Get New Car Replacement from Any Insurer?

No. Not all carriers offer new car replacement. It is also not available in every state. Let your Acceptance agent shop around if this is a protection you are interested in.

How Long is New Car Replacement Available?

The answer is – it varies widely depending on the carrier. For example, some cover the first year or the first 15,000 miles. Others offer it for up to 24 months after purchase. Some offer it for motorcycles.

What is Better Car Replacement?

Better car replacement is for people who own older models. It typically offers a replacement vehicle of the same make and model, but one year newer and with 15,000 less miles.