If you have just purchased a new car and have added it on to your auto insurance policy, make sure you ask your independent insurance agent about new car replacement coverage. Most insurance carriers offer some type of new vehicle replacement coverage, depending on the carrier, most only offer the coverage to vehicle that are less than one year old. The main qualifications are you have to be the vehicles original owner, and the vehicle needs to be less than one year old. The benefits of the coverage are the insurance carrier will pay you the value of a comparable new car. Not many auto insurance policies come standard with that coverage, so make sure you elect to add that endorsement to your auto insurance policy.
If you are involved in a covered accident and the cost to repair the vehicle exceeds the car’s actual cash value, new car replacement coverage will pay for the current model year if the car is still manufactured. Otherwise it will pay you for a new car that is similar in size and class. Your auto insurance deductible is still applied to the loss settlement, but in the event of an accident you will receive a more fair settlement, and help protect your auto investment.
Most of our insurance carriers at A.T.C. Agency offer some type of new vehicle replacement coverage. Depending on the carrier the vehicle needs to be less than a year old, and purchased new. Encompass Insurance offers the coverage for up to four years after originally purchasing the vehicle. Travelers Insurance Company also offers the new vehicle replacement coverage, but extends the coverage for up to five years after originally purchasing the vehicle. The coverage has to be added to your insurance policy once you initially add the vehicle.
A.T.C. Agency’s insurance agents can help find the appropriate carrier for your unique auto insurance needs. Make sure to stop by our office in Edina, Minnesota. One of our agents can help you protect yourself and your vehicle. No one wants to get in an accident but having a qualified insurance agent can help make the difference in the event of a claim.