Buying a new car is a big commitment and it is natural to wonder what would happen if something goes wrong. New car replacement insurance can help you relax about the new vehicle you just brought home.
What new car replacement insurance is
New car replacement insurance will cover the full cost of a new mode — minus the deductible — if you happen to total it in an accident shortly after buying it. It does need to be added to your existing auto insurance before you drive off the lot, however.
This type of insurance is wise to have because new cars begin to depreciate as soon as you bring them home. In fact, they lose over 20 percent of their value within the first year, so having full replacement coverage can be a lifesaver if disaster strikes.
How to get it
Typically, you can add new car replacement coverage to the auto insurance policy you already have. Be sure to check the rules to make sure the car meets the company’s age and mileage requirements, though. Some insurance companies cap the coverage at 1,000 miles. It’s also smart to look for the lowest deductible you can find when selecting this type of coverage. That way, you’ll keep out-of-pocket costs low.
Call us at Ken Nelson Chevrolet to find out more about new car replacement insurance or any other type of auto insurance. We’re here to help make car ownership a more positive and less stressful experience.