New For Old Car Insurance - Who offers it and is it right for me?

New for old car insurance

Find out how you can have your car replaced with a brand new vehicle if it is stolen or written off.

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If your new car is written off within 2 years of you buying it, your insurance policy may reimburse you to buy a new one. This is sometimes known as 'new for old car replacement' and it's included in many comprehensive policies.

If you've just forked out a large sum to pay for a new car, it's worth finding a policy that includes this perk. We've listed the providers that automatically cover you.

Protect future you - get new for old car insurance

Name Product Do they cover new car replacement? Conditions Roadside Assistance Accidental Damage
Budget Direct Comprehensive
If your car is written off in the first 2 years or is under 40,000 km
Optional
Finder's summary: Awarded the 2019 Finder Award for the Best Value Car Insurance, this policy offers solid coverage at a low cost plus you will get 15% discount on first year's premium when you take out a policy online. Budget Direct’s claims service has received a 4.2/5 based on nearly 5,000 customer reviews.

Who it might be good for: People who want a comprehensive policy without breaking the bank.
QBE Comprehensive
If your car is written off in the first 3 years and is under 60,000 km
Finder's summary: QBE is a sustainable insurance company and also Finder's Green Insurer of the Year 2020 Award winner. This policy offers the highest level of protection available from QBE including three-year new car replacement. You can also save $75 when you purchase a new comprehensive policy online. T&Cs apply.

Who it might be good for: Those that are looking for a more environmentally friendly insurance choice.
Bingle Comprehensive
Optional
If your car is written off in the first 3 years
Finder's summary:Bingle consistently comes up as one of the cheaper insurers out there. It only covers the basics, so you don't get to choose your own repairer, you're not covered for personal items in the car and unless you add it as an option, you won't get a hire car if your car is stolen. But this keeps its premiums low.

Who it might be good for: Someone who wants a low-cost option that covers them for the basics.
Coles Comprehensive
If your car is written off in the first 2 years
Optional
Finder's summary: Coles have two-tiers of comprehensive car insurance to choose from. You'll earn double flybuys points at Coles supermarkets and you can get $10 off your Coles grocery bill every time you redeem 2,000 Flybuys points. If you're over 30, you can get roadside assistance free for a year.

Who it might be good for: Coles customers and Flybuys collectors.
Poncho Comprehensive
Yes - If your car is less than 15,000 kms
Finder's summary: Poncho works like a monthly subscription – you pay monthly and can cancel and leave at any time. You can also list multiple cars and drivers under one policy, making it ideal for families and groups living together under one household.

Who it might be good for: People who want their car insurance month to month.
Qantas Comprehensive
If your car is written off in the first 2 years and is under 40,000 km
Optional
Finder's summary: You'll be able to choose how comprehensive you want your cover to be with optional extras like choice of repairer and the option of agreed or market value. Plus earn Qantas Points for joining and paying your premium. Sign up by 2 May 2021, you can earn up to 30,000 Qantas Points (points awarded will be based on your premium). T&Cs and eligibility apply.
Virgin Comprehensive
If your car is written off in the first 2 years or is under 40,000 km
Optional
Finder's summary: Finalists for the 2019 Finder Awards for Best Value Car Insurance, Virgin Comprehensive provides a good level of cover for a decent price. Get 15% off on your first year’s premium when you purchase a new eligible comprehensive car insurance online. T&Cs Apply.
Stella Comprehensive
Yes - If your car is written off in the first 3 years or is under 60,000 km
Optional
Finder's summary: Stella’s a female-focused insurer. It'll cover you if your car is damaged as a result of domestic violence. It offers higher cover for baby gear than most, with up to $2,000 cover for prams, strollers and child seats. Get $50 cash back when you purchase online between 1 April – 30 June 2021 using the code STELLA50. T&C apply.

Who it might be good for: Someone who wants a female-centred car insurance policy (it will cover men too).
Youi Comprehensive
If your car is written off or stolen in the first 2 years
Finder's summary: Youi Comprehensive Car Insurance is one of the few providers to include roadside assistance in its policy. You'll also get access to YouiRewards which gives you discounts on furniture, parking and more. Youi also has a live chat feature on its site to talk through any questions.

Who it might be good for: People over 25 who want comprehensive cover with a focus on customer service
Real Comprehensive
If your car is written off in the first 2 years
Optional
Finder's summary: Real Comprehensive Car Insurance provides similar coverage to other insurers for the important stuff like looking after your car if it's stolen or you crash. They're also one of the few insurers who offer a Pay As You Drive policy, so you might be able to save big if you don't drive much.

Who it might be good for: Those that don't drive much can take advantage of their Pay As You Drive policy.
Australia Post Comprehensive
Finder's summary: Australia Post car insurance offers comprehensive cover for things like theft, fire, new for old replacement and emergency accommodation and transport. Cover also extends to anyone who uses your car, not just you.

Who it might be good for: If multiple people use the one car and you don’t want to worry about listing all drivers.
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Car Keys

What is new car replacement?

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.

Is new car replacement worth it?

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:

  • Do you have a new car? First and foremost, it's only worth it if you are eligible. In most cases, your car needs to be less than 2 years old for you to be covered. There is also sometimes a 40,000km odometer limit.
  • Do you live in an area prone to floods, storms or natural disasters? As Australia's climate crisis intensifies, the chances of extreme weather where you live increases. If your new car was written off due to an act of nature, a new car replacement benefit would ensure you got either one of the same model or of the same market value.
  • Could you afford to replace your new car? New cars are expensive. Most of us couldn't afford to just go out and buy a new one if ours was written off. New for old replacement ensures you don't have to worry about that.
  • What about if you're in a crash? New car replacement is designed to help you financially in case your car is written off. In most cases, this is because of a collision. If you're willing to take the risk with such a big investment, then new car insurance probably isn't worth it for you. Otherwise, it's a really helpful benefit you'll be thankful you got if something goes wrong.

Does it cost extra to get new for old car insurance cover?

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, UbiCar, 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).

What are my options?

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.

When am I eligible for new car replacement?

  • You must be the first registered owner of the car.
  • You are often eligible for new car replacement even if the vehicle was pre-registered as a demo model by the dealer, but this is not the case with all insurers.
  • If your vehicle was purchased with the aid of a car loan, your credit provider must give permission for the original vehicle to be replaced with a new one.

What happens after my car is replaced?

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.

In what situation would I receive a replacement vehicle?

Most insurers will offer a new car replacement if your vehicle is a total loss, usually defined by three criteria.

  • Your vehicle was stolen and could not be recovered for a specified period of time, for example 14 days.
  • The cost of repairing your vehicle exceeds the sum insured.
  • Your car cannot be repaired well enough to ensure that it will be safe to drive.

What kind of car will I receive?

  • Same make, model and series. The replacement car will basically be the current version of the car that was insured.
  • Accessories and modifications included. If you loaded your new car with expensive optional extras, most insurers agree to provide you with a replacement vehicle kitted out in the same way.
  • On-road costs are covered. Most insurers will cover compulsory third party (CTP) insurance and throw in stamp duty plus 12 months’ registration.

What type of exclusions are there?

  • You will usually not be covered for any extended warranty you purchased for the original vehicle.
  • A basic excess often applies, but some insurers will waive this if your car is written off in an accident where you were not at fault.
  • Some insurers stipulate a maximum tare weight limit for the vehicle to be eligible for new car replacement.

What are the limitations of new car replacement plans?

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.

What are the alternatives to new car replacement?

  • Agreed value car insurance. Even if your car is less than two years old, you will usually not be eligible for new car replacement if you are not the first registered owner. However, you can estimate how much a new replacement vehicle would cost and negotiate an agreed value to cover this with your insurer.
  • New-for-old lifetime insurance. Some insurers will replace your car with a new one even after its second birthday, if your vehicle has been continuously insured under a top-end comprehensive policy within 13 months of purchase. In this case, the insurer has the right to decide on a suitably similar new car, considering parameters such as engine size, type of finish, optional extras and so on.

Comprehensive car insurance policies that offer New Car Replacement

BrandConditions
1300If your car is written off in the first 2 years
1st for WomenIf your car is written off in the first year or is under 20,000 km
AAMIIf your car is written off in the first 2 years
AllianzIf your car is written off in the first 2 years
ANZIf your car is written off in the first 2 years or is under 30,000 km
Australia PostIf your car is written off in the first year or is under 40,000 km
Australian SeniorsIf your car is written off in the first 2 years
Australian UnityIf your car is written off in the first year or is under 20,000 km
Bank of QueenslandIf your car is written off in the first 2 years
Bendigo BankIf your car is written off in the first 3 years or is under 50,000 km
Beyond BankIf your car is written off in the first 2 years
BingleIf your car is written off in the first 3 years
BMWIf your car is written off in the first 3 years
BupaIf your car is written off in the first year or is under 50,000 km
CGUIf your car is written off in the first 3 years or is under 50,000 km
ColesIf your car is written off in the first 2 years
Commonwealth BankIf your car is written off in the first 2 years
FamousIf your car is written off in the first 2 years
GIOIf your car is written off in the first 2 years
Guild InsuranceIf your car is written off in the first 2 years
HSBCIf your car is written off in the first 2 years
HuddleIf your car is written off in the first 2 years
HumeIf your car is written off in the first 2 years
InsureMyTeslaIf your car is written off in the first 3 years
KoganIf your car is written off in the first 2 years
LatitudeIf your car is written off in the first year or is under 20,000 km
MBIf your car is written off in the first 4 years
Mortgage ChoiceIf your car is written off in the first 2 years
NABIf your car is written off in the first 2 years
National SeniorsIf your car is written off in the first 2 years
NRMAIf your car is written off in the first 2 years
RACIf your car is written off in the first 2 years
RACQIf your car is written off in the first 2 years
RACTIf your car is written off in the first 2 years
RACVIf your car is written off in the first 3 years
RealIf your car is written off in the first 2 years
RetireaseIf your car is written off in the first year or is under 20,000 km
RynoIf your car is written off in the first 3 years
SGICIf your car is written off in the first 2 years
SGIOIf your car is written off in the first 2 years
ShannonsIf your car is written off in the first 1 years
St. GeorgeIf your car is written off in the first 2 years
SuncorpIf your car is written off in the first 2 years
ToyotaIf your car is written off in the first 3 years
WoolworthsIf your car is written off in the first 2 years
YouiIf your car is written off or stolen in the first 2 years

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