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If your new car is written off within 2 years of you buying it, new for old car insurance can reimburse you to buy a new one. This a handy feature that's included in most comprehensive policies. We've listed some car insurers that offer this type of cover below.
Under most comprehensive policies, if your brand new car is declared a total loss within two years of purchase, you are eligible to have it replaced with another unused vehicle of the same type. Many insurers also specify they will only replace a new car if it has 40,000km or less on the odometer.
Most comprehensive policies, with a few exceptions, will automatically include new for old replacement cover. However, if you're wondering whether it's worth it, consider the following:
Not really. Basically, if car insurers didn't offer it, it probably would result in very slightly cheaper premiums. However, most automatically include it in their comprehensive car insurance policies. Budget Direct, Youi, Coles, Virgin, Qantas and Real all cover new car replacement. If you want to go with a major provider, it's probably not going to cost you any more money.
One of the few car insurers to offer it as an optional extra is Bingle. However, if you wanted to add new car replacement on to a Bingle comprehensive policy, it'll only cost you around $2* more a month.
*$62.21 without new for old and $64.45 with new for old, based on a 30 year old male driving a 2019 Toyota Corolla (automatic).
New car replacement cover is normally included as a standard feature of comprehensive car insurance policies. Some insurers even offer new-for-old replacement for the life of your car under some circumstances. This is normally sold as an extra or as part of a top-end comprehensive policy and is subject to additional criteria.
This varies from insurer to insurer. In some cases, the insurer will transfer your policy to the new vehicle. In others, your cover ends and you must obtain a new policy for your replacement car. Read the product disclosure statement (PDS) carefully to know exactly what rules apply.
Most insurers will offer a new car replacement if your vehicle is a total loss, usually defined by three criteria.
The main pitfall to be wary of with new car replacement insurance is its validity period. As soon as your car is more than two years old, or once you’ve crossed the 40,000km limit (if this applies to your policy), your sum insured will plummet if you have chosen market value rather than agreed value on your insurance.
Another risk is that a similar replacement car may not be available. This is particularly relevant if you’ve forked out for a policy that features a lifetime new-for-old replacement option. Some insurers attempt to avoid supplying a brand new vehicle on the basis they can’t find a suitable replacement, especially if the alternative is to pay you market value instead.
If you are faced with this problem, it is usually worth searching for a replacement vehicle yourself. If you succeed in finding one within the time limit specified on your policy, the insurer is obligated to deliver it as your replacement.
Brand | Conditions |
---|---|
1300 | If your car is written off in the first 2 years |
1st for Women | If your car is written off in the first year or is under 20,000 km |
AAMI | If your car is written off in the first 2 years |
Allianz | If your car is written off in the first 2 years |
ANZ | If your car is written off in the first 2 years or is under 30,000 km |
Australia Post | If your car is written off in the first year or is under 40,000 km |
Australian Seniors | If your car is written off in the first 2 years |
Australian Unity | If your car is written off in the first year or is under 20,000 km |
Bank of Queensland | If your car is written off in the first 2 years |
Bendigo Bank | If your car is written off in the first 3 years or is under 50,000 km |
Beyond Bank | If your car is written off in the first 2 years |
Bingle | If your car is written off in the first 3 years |
BMW | If your car is written off in the first 3 years |
Bupa | If your car is written off in the first year or is under 50,000 km |
CGU | If your car is written off in the first 3 years or is under 50,000 km |
Coles | If your car is written off in the first 2 years |
Commonwealth Bank | If your car is written off in the first 2 years |
Everday | If your car is written off in the first 2 years |
Famous | If your car is written off in the first 2 years |
GIO | If your car is written off in the first 2 years |
HSBC | If your car is written off in the first 2 years |
Huddle | If your car is written off in the first 2 years |
Hume | If your car is written off in the first 2 years |
Kogan | If your car is written off in the first 2 years |
MB | If your car is written off in the first 4 years |
Mortgage Choice | If your car is written off in the first 2 years |
NAB | If your car is written off in the first 2 years |
National Seniors | If your car is written off in the first 2 years |
NRMA | If your car is written off in the first 2 years |
RAC | If your car is written off in the first 2 years |
RACQ | If your car is written off in the first 2 years |
RACT | If your car is written off in the first 2 years |
RACV | If your car is written off in the first 3 years |
Real | If your car is written off in the first 2 years |
Retirease | If your car is written off in the first year or is under 20,000 km |
Ryno | If your car is written off in the first 3 years |
SGIC | If your car is written off in the first 2 years |
SGIO | If your car is written off in the first 2 years |
Shannons | If your car is written off in the first 1 years |
St. George | If your car is written off in the first 2 years |
Suncorp | If your car is written off in the first 2 years |
Toyota | If your car is written off in the first 3 years |
Youi | If your car is written off or stolen in the first 2 years |
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