Car Insurance That Replaces Your New Car

By James Watch, 05 Mar 19:48

I found out the hard way that not all car insurance works the way you might expect, especially when it comes to the issue of replacing a new vehicle that's been written off in an accident.

I had just bought a new minivan and we'd only had it for three months when a guy in a big Suburban ran a red light and T-boned me at 40 miles per hour. Fortunately, it hit on the passenger side and no one else was with me. My injuries were minor, but the van was a write off. I'd paid $25,000 just three months prior for this vehicle, but the insurance company was offering only $20,000 as a replacement. Driving off the lot had depreciated my new vehicle and I was out the difference. When I bought a replacement van, I switched to Farmers Insurance because of their FarmersFlex "New Car Pledge." With this option, my car insurance will replace my new minivan without depreciation if it's written off within the first two years (or 24,000 miles) I own it. Too bad I didn't know about that this the first time, but at least someone else can learn from my experience.

Auto Insurance Options Can Customize Your Coverage

Auto insurance, like any other form of insurance coverage, can (and often should be) fine-tuned to meet a customer's personal needs. While there are "one size fits all" policies, many people would benefit from discussing their circumstances with an agent who could suggest ways to make the most of their auto insurance policy.

For example, customers who use their vehicles extensively for business or recreational travel might benefit from emergency roadside assistance coverage, providing towing, locksmith and battery jump-starting services. It's peace of mind for the traveler and convenient too, since companies like Farmers Insurance offer policies where they are typically billed directly instead of the customer having to pay on the spot. Other popular options include windshield glass repair service, personal umbrella insurance (which supplements liability coverage), accident forgiveness, declining deductible, car rental reimbursement (for times when a customer's own vehicle is being repaired after an accident) and a rate shield (or the ability to lock rates in for up to three years). There is even additional coverage available for those who invest in a premium car audio system.

With customization of their auto insurance policy, customers are not only assured of having coverage that's been designed to meet their specific needs, they may also save money by opting to forgo options that they don't need.

Anyone thinking about requesting a car insurance quote should make sure to consult our knowledge base first to ensure they understand all terminology used on the response. The "Just For Parents" information page includes everything new parents need to know and the auto insurance implications for parents of teens who will soon be driving. Once you're ready to compare your current rates to what you could be paying, a handy online auto insurance quote is just a click away.