Purchased a new car in NSW? The most rational thing to do next is to buy suitable and cheapest car insurance Compulsory third party insurance doesn’t cover your or others’ vehicle damage; all it covers is your liability for third party injury and mortality. So, if you wish to protect your car and your savings account, you must purchase additional vehicle insurance that suits your needs. You have several policies to choose from, like third party property, third party fire and theft, and comprehensive car insurance.
Comprehensive car insurance is the best car insurance policy available. It is the only policy that covers your vehicle damage with a lot of other benefits. Have you ever thought about what to do if your vehicle is written off or stolen in just a few years of buying it? Some car insurance NSW providers have what is commonly known as new-for-old car insurance cover as part of their policies. Many insurers include this as a part of comprehensive policies, and inclusion of it has a negligible impact on the vehicle premiums.
The insurance company will replace your old car with a new one of the same make, model, and series. This offer is applicable only if your vehicle has been purchased within a specified duration by the insurer. Yet, some insurers offer a lifetime new-for-old replacement vehicle insurance that must be purchased as an optional extra to a comprehensive car insurance policy.
Eligibility for new car
replacement
You need to meet certain specifications to claim a new car replacement. The most basic necessity to be eligible is you must be the registered owner of the vehicle. If you have bought the car through finance, then getting the lender’s permission becomes mandatory.
Conditions when a replacement
may be approved
If your vehicle is deemed to be a total loss, then insurers may offer a replacement. Other conditions are – if your car is stolen and not found within a specified time frame, your vehicle is damaged beyond repair, it is possible to fix your car, but the costs of fixing go beyond the sum insured. Or, they may offer a reimbursement of the value instead.
Additional factors affecting
new car replacement
You may still need to pay basic excess to avail of this offer. However, some insurers may waive off the excess if the damage is due to an accident where you were not at fault.
Other insurers may not replace after a year or two of purchase or if your vehicle has crossed a specified number of kilometres.
Costs new car replacement
covers
The cover usually comprises the new vehicle and on-road costs, including dealer delivery fees, annual registration fees, stamp duty, and compulsory third-party insurance. Plus, the modifications and accessories that were in the earlier car may be covered, depending on what they were.
When the same model isn’t
available for new car replacement
If they can’t replace your car with exactly the same model, then the insurer may suggest a vehicle with similar features, space, specifications, etc. You may choose that car if you are satisfied or ask for a payout. If you go ahead with the payout, the insurance provider may deduct an excess payment from your insured sum. Also, any unpaid premiums on your current policy may be withheld by some insurers if transferring the policy to your new vehicle isn’t possible.
To know the next steps in the process, it would be best to contact your car insurance NSW provider. The best car insurance offers you a new-for-old car replacement service or will at least pay you out for your car’s agreed/market value. So, choose a policy that covers your vehicle adequately.
