New Car Replacement Coverage

Many auto insurers offer optional coverages for your new vehicle, and perhaps the best is new car replacement coverage.

Simply put this coverage pays to replace your vehicle with a brand new car of the same make and model—meaning no depreciation!

Are there restrictions? Of course. For starters your vehicle must be new. Some carriers will allow “newer” vehicles and the year cutoff depends on the company’s underwriting guidelines.

Our Family of Independent Agents represent multiple carriers, but I think the Premier New Car Replacement® coverage from Travelers Insurance is the headliner. While many insures offer coverage for the first two or three years, Travelers will cover up to five.

Below is some additional information on this offering from Travelers:

What Does Premier New Car Replacement Cover?

Premier New Car Replacement is a coverage package designed to replace your new vehicle with a brand new vehicle of the same make and model if yours is totaled in the first five years of ownership.

You must be the original owner and the vehicle must be the current or a future model year at the time you add this coverage.

This coverage includes:

New Car Replacement Coverage

This covers the cost of a new car of the same make and model, minus the applicable deductibles, if your car is totaled in a covered loss. Fire, theft, larceny and flood losses are excluded.

Loan/Lease Gap Coverage

This coverage protects you if your vehicle is financed or leased. If your vehicle is totaled, this coverage may pay the difference between the actual cash value of the vehicle and the unpaid balance of the loan or lease.

Glass Deductible

This is a lower deductible that can be applied in place of your comprehensive deductible for a glass-only loss involving your windshield, windows, and exterior lights or mirrors.