New Car Replacement Insurance

Whats the catch behind Better Car and New Car Replacement insurance?

In order to attract more customers, Liberty Mutual offers new car replacement insurance. Ruin your vehicle in an accident, they say they will buy you an even better ride.

New Car Replacement InsuranceIt’s called “Better Car Replacement Insurance” which apparently improves on the standard coverage most car insurance companies already provide if your vehicle is a total loss.

But stop dreaming, you’re not getting a  brand new Mercedes for an old Hyundai.

“Better Car Replacement” works like this:

  1. You pay extra premium to have this coverage
  2. Instead of writing you a check for a similarly valued car, you get a check for one that’s a year newer and with at least 15,000 fewer miles. The replacement would have to be in the same class and basic model type as the totaled one.

For example: If you have a 2007 vehicle with 35,000 miles on it and are involved in a total-loss accident, Liberty Mutual will give you the money for a 2008 model with 20,000 miles on it.”

And there are conditions:

  1. Your car has to be declared a total loss
  2. It must be a collision or comprehensive claim
  3. You still must pay the deductible
  4. It’s not available for leased vehicles or motorcycles
  5. It’s not offered in all states.
  6. AND It’s not free.  The premium is based on your age, driving record, type of vehicle, your address and other factors. In fact, you could pay anywhere from 5% to 40% more for this coverage.

PLUS “New Car Replacement” is only available for vehicles that:

  • Are not previously owned.
  • Are less than one year old.
  • Have fewer than 15,000 miles
  • and  are not leased.

Liberty Mutual isn’t the only insurer providing “new car replacement.” Most carriers have it but with slight variations.

It always cost extra but come with other benefits, such as accident forgiveness.

We recommend you compare policy quotes to see just how much more you are paying for this coverage.  Just like anything else, nothing is free.

Call Austin Insurance Group today to compare rates for your auto insurance.  And get the best coverage and rates for your money.