New Car Replacement Insurance
(Everything you need to know - and more)

Ahhh, new cars. They smell great, are clean as a whistle, and will never be worth as much as you paid for them at the dealership. But hey, sometimes the juice is worth the squeeze.
Every year more than 17 million cars are sold in the US. Your car may be new, but the driving habits of the world are still the same, and if your brand-new car is in an accident, all you’ll be left with is a big bill.
That’s why our independent insurance agents can help you determine what types of car insurance coverage is for you and how to find the best policy.
The leading US car dealerships, based on new and used vehicle sales (in units)

What Is New Car Replacement Insurance?
New car replacement insurance is exactly what it sounds like, insurance that will replace your new car with a new vehicle of the same make and model should you get in an accident within a certain time after buying your vehicle.
New car replacement insurance exists because there are more than 6 million accidents in the United States every year, and while new cars are shiny and wonderful, they depreciate in value quicker than any other type of vehicle.
Number of vehicles involved in traffic crashes in the United States (in 1,000s)

What Does New Car Replacement Insurance Cover?
If you total your car within a certain time after buying your vehicle, your new car replacement insurance covers the money you would need to buy a new car.
Let's say you buy a car worth $45,000. Six months after buying it, you’re in an accident and your car is totaled. It's now worth $38,000, but a brand-new version of your car is still $45,000. New car replacement insurance coverage provides you with the $45,000 needed to buy the same car again.
What’s the Difference Between New Car Replacement and Gap Insurance?
It’s easy to get these two confused, since they both deal with helping you out should you get in an accident after you buy a new car. But there is a small difference between the two.
New car replacement insurance: Insurance coverage that will replace your car with the same model and year should you total your vehicle.
Gap insurance: Insurance coverage that pays the difference in what you owe on your vehicle should you total your car when you owe more than what it’s worth.
How Much Does New Car Replacement Insurance Cost?
Like all insurance, the cost varies depending on the insurance company you choose. New car replacement is always an additional cost to your insurance policy. It also usually requires that you have comprehensive and collision insurance as well.
Estimated annual car insurance premiums in the United States, by state (in US dollars)

Just like with regular car insurance, the added cost of your new car replacement insurance will depend on the model of your car, your age and driving history, and other insurance policies.
Is New Car Replacement Insurance Required?
No, new car replacement insurance is never required. However, your driving history, the model of your new car, and how quickly the cost will depreciate can help determine whether it’s a good idea for you.
That’s also what our independent insurance agents are for. They’ll do the hard work of researching the costs associated with the risk and let you know what’s the best option for you.
Where Can I Find the Best New Car Replacement Insurance?
The best way to ruin the joys of owning a brand-new car is to find yourself in an accident without the proper coverage. The best way to find the best coverage for you is with a trusted insurance agent.
Independent insurance agents know how to shop insurance, it's their job. All you need to do is come prepared with your driving history and type of new car and they can take care of the rest.
Compare New Car Replacement Insurance Quotes
Time is of the essence and we know that no one has time to waste. So don't waste yours on doing the hard stuff when we can do it for you. Our independent insurance agents keep up with insurance trends, so you don't have to.
They'll know what to look for in an insurance package and provide you with a variety of new car replacement insurance quotes that fit your budget.
Before you drive off the lot, understand the risks and costs associated with your vehicle and determine how much protection you need should an unexpected accident occur. Then let our independent insurance agents put it in cruise control from there.
TrustedChoice.com Article | Reviewed by Paul Martin
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