New Car Replacement
COVERAGE DESCRIPTION: Replacement Car Coverage is available for a newly purchased (not leased) first-time titled vehicle. When a vehicle carrying this coverage is involved in a loss and deemed totaled, the settlement basis is on the cost to replace the vehicle with a new vehicle, and without the deduction for depreciation. Most insurers limit the time frame for vehicles from 2 to 5 years. The coverage is automatically taken off a vehicle that no longer is eligible for the coverage.
CLAIM EXAMPLE: When a driver totalled their 2- year old car and received a check for the full replacement cost of $28,500, they were very happy. A depreciated settlement would have only paid the actual cash value of the car, which calculated to be nearly $8,000 less.
IS THIS OPTION RIGHT FOR YOU? This can be a very good option and one we recommend highly for a new vehicle. The cost is generally 15% of the vehicles physical damage premiums.
COVERAGE APPLICATION: Coverage is on a per vehicle basis as requested.