Auto
Is new car replacement coverage worth it?
Offered replacement value coverage when buying a car? Five things to consider before you decide.
When buying a car, you may be offered replacement value coverage. It can be a significant cost, but it is optional, not required, and it can be cancelled (refer to your policy).
To decide whether it’s worth it, consider:
- How quickly the vehicle depreciates
- How likely it is to be declared a total loss
- How often you drive it
- How far you drive
- How likely you think an accident or total loss is
There’s no single right answer. If you’re unsure, tell me about your car and how you use it, and we’ll look at it together.
This article is general information only. Your actual coverage is set out in your policy wording.