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.

New car replacement is offered in most comprehensive car insurance policies. If your car is less than 2 years old and gets written off or is stolen, your insurer will give you a shiny, brand new baby. If you're getting a new car, it just makes sense.

Protect future you - get new car replacement

Updated May 23rd, 2019
Name Product Do they cover new car replacement? Conditions Roadside Assistance Accidental Damage
Optional
If your car is written off in the first 3 years
Discounts: Save 24% on your policy if you've been claim free for 3 years.
If your car is written off in the first 2 years or is under 40,000 km
Optional
Discounts: Buy online and save 15%.
If your car is written off or stolen in the first 2 years
Highlights: Emergency roadside assistance included in Comprehensive policies.
If your car is written off in the first 2 years
Optional
Highlights: Advanced anti-fraud technology allows you to claim and get paid instantly. Transforms your driving so it's 100% carbon neutral. Certified B-Corp for those that are ethically conscious.
If your car is written off in the first 2 years or is under 40,000 km
Optional
Discounts: Save 15% when purchasing online. Plus receive up to 10,000 Velocity Points when purchasing a new eligible policy by 5 June 2019. Min 6 months policy. T&C’s apply.
If your car is written off in the first 2 years
Optional
Discounts: Save up to 10% when you buy online.

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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.

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

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
BestBuy If your car is written off in the first year or is under 20,000 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 30,000 km
Cashback If your car is written off in the first year or is under 20,000 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
Famous If your car is written off in the first 2 years
GIO If your car is written off in the first 2 years
Guild Insurance 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
InsureMyTesla If your car is written off in the first 3 years
Kogan If your car is written off in the first 2 years
Latitude If your car is written off in the first year or is under 20,000 km
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
Woolworths If your car is written off in the first 2 years
Youi If your car is written off or stolen in the first 2 years

Picture: Shutterstock


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