{"menuItems":[{"label":"Protect future you - get new for old car insurance","anchorName":"#protect-future-you---get-new-for-old-car-insurance"},{"label":"What is new car replacement?","anchorName":"#what-is-new-car-replacement"},{"label":"Is new car replacement worth it?","anchorName":"#is-new-car-replacement-worth-it"},{"label":"Does it cost extra to get new for old car insurance cover?","anchorName":"#does-it-cost-extra-to-get-new-for-old-car-insurance-cover"},{"label":"What are my options?","anchorName":"#what-are-my-options"},{"label":"When am I eligible for new car replacement?","anchorName":"#when-am-i-eligible-for-new-car-replacement"},{"label":"What happens after my car is replaced?","anchorName":"#what-happens-after-my-car-is-replaced"},{"label":"In what situation would I receive a replacement vehicle?","anchorName":"#in-what-situation-would-i-receive-a-replacement-vehicle"},{"label":"What kind of car will I receive?","anchorName":"#what-kind-of-car-will-i-receive"},{"label":"What type of exclusions are there?","anchorName":"#what-type-of-exclusions-are-there"},{"label":"What are the limitations of new car replacement plans?","anchorName":"#what-are-the-limitations-of-new-car-replacement-plans"},{"label":"What are the alternatives to new car replacement?","anchorName":"#what-are-the-alternatives-to-new-car-replacement"},{"label":"Comprehensive car insurance policies that offer New Car Replacement","anchorName":"#comprehensive-car-insurance-policies-that-offer-new-car-replacement"}]}
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.
Protect future you - get new for old car insurance
1 - 7 of 7
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, 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
If your car is written off or stolen in the first 2 years
Why you can trust Finder's car insurance experts
We're free
You pay the same as buying directly from the car insurer. Better still, we regularly run exclusive deals that you won't find on any other site – plus, our tables make it easy to compare policies.
We're experts
Our team of car insurance experts have researched and rated dozens of policies as part of our Finder Awards and published 330+ guides to make it easier for you to compare.
We're independent
Unlike other comparison sites, we're not owned by an insurer. That means our opinions are our own and we work with lots of car insurance brands, making it easier for you to find a good deal.
We're here to help
Since 2014, we've helped 300,000+ people find car insurance by explaining your cover options, simply and clearly. We'll never ask for your number or email. We're here to help you make a decision.
Gary Ross Hunter is an editor at Finder, specialising in insurance. He’s been writing about life, travel, home, car, pet and health insurance for over 6 years and regularly appears as an insurance expert in publications including The Sydney Morning Herald, news.com.au, The Telegraph, Explore Travel and Escape. Gary holds a Kaplan Tier 1 General Insurance (General Advice) certification and a Kaplan Tier 1 Generic Knowledge certification which meets the requirements of ASIC Regulatory Guide 146 (RG146).
How likely would you be to recommend finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Important information about this website
finder.com.au is one of Australia's leading comparison websites. We are committed to our readers and stands by our editorial principles
We try to take an open and transparent approach and provide a broad-based comparison service. However, you should be aware that while we are an independently owned service, our comparison service does not include all providers or all products available in the market.
Some product issuers may provide products or offer services through multiple brands, associated companies or different labeling arrangements. This can make it difficult for consumers to compare alternatives or identify the companies behind the products. However, we aim to provide information to enable consumers to understand these issues.
We make money by featuring products on our site. Compensation received from the providers featured on our site can influence which products we write about as well as where and how products appear on our page, but the order or placement of these products does not influence our assessment or opinions of them, nor is it an endorsement or recommendation for them.
Products marked as 'Top Pick', 'Promoted' or 'Advertisement' are prominently displayed either as a result of a commercial advertising arrangement or to highlight a particular product, provider or feature. Finder may receive remuneration from the Provider if you click on the related link, purchase or enquire about the product. Finder's decision to show a 'promoted' product is neither a recommendation that the product is appropriate for you nor an indication that the product is the best in its category. We encourage you to use the tools and information we provide to compare your options.
Where our site links to particular products or displays 'Go to site' buttons, we may receive a commission, referral fee or payment when you click on those buttons or apply for a product. You can learn more about how we make money.
When products are grouped in a table or list, the order in which they are initially sorted may be influenced by a range of factors including price, fees and discounts; commercial partnerships; product features; and brand popularity. We provide tools so you can sort and filter these lists to highlight features that matter to you.
Please note that the information published on our site should not be construed as personal advice and does not consider your personal needs and circumstances. While our site will provide you with factual information and general advice to help you make better decisions, it isn't a substitute for professional advice. You should consider whether the products or services featured on our site are appropriate for your needs. If you're unsure about anything, seek professional advice before you apply for any product or commit to any plan and read any disclosure documents (such as any Target Market Determination (TMD) and/or Product Disclosure Statement (PDS)) issued by the provider before making a decision.
Providing or obtaining an estimated insurance quote through us does not guarantee you can get the insurance. Acceptance by insurance companies is based on things like occupation, health and lifestyle. By providing you with the ability to apply for a credit card or loan, we are not guaranteeing that your application will be approved. Your application for credit products is subject to the Provider's terms and conditions as well as their application and lending criteria.
Please read our website terms of use and privacy policy for more information about our services and our approach to privacy.
