Buying a new vehicle can be both exciting and stressful. It’s exciting because you get to drive home in a brand-new vehicle with the latest features and styles; it’s stressful because car shopping can be a challenging process, not to mention that driving a new vehicle can come with a fair amount of anxiety. Many people fear something happening to their new vehicles after investing so much money into them. That’s why it can help to get new car replace coverage added onto your existing insurance policy. This additional coverage will give you peace of mind should anything happened to your new purchase.
What Is New Car Replacement Coverage?
New car replacement coverage will pay you the value of a brand-new car of the same make and model (minus the deductible) if your car is declared a total loss. Usually new car replacement insurance costs a bit extra, only applies to newer cars and is available only if you buy collision and comprehensive insurance. The coverage also normally has a cutoff point of either a few years or a set mileage (most often around 15,000 miles).
How Does New Car Replacement Coverage Work?
If your new car is totaled and you have new car replacement insurance, you will be given money for a brand-new car of the same make and model (minus your deductible) instead of the depreciated value of your totaled car. In that same scenario, if you don’t have new car replacement coverage, you will get a lesser amount from your car insurance policy, and you would have to start the car shopping process all over again.
Who Should Get New Car Replacement Coverage?
If you just bought a brand-new vehicle, or you are thinking about it, new car replacement insurance is a good option to consider. This coverage is an affordable way to maintain the value of your vehicle, which would otherwise depreciate significantly once it’s driven off the lot. You should also consider new car replacement insurance if you purchase a high-end or high-value vehicle. These types of cars have the highest depreciation rates. With new car replacement coverage, you will be able to worry less about something happening to your new vehicle.
If you want to learn more about new car replacement coverage, and to determine if it’s right for you, contact the experts at McCartan Insurance Group, Inc. We will help make sure you have the coverage you need.