Home » Blog » Car » Car Insurance Insights » New For Old Car Insurance: What’s It All About?
Categories
Tags
animal welfare
breed profile
buying a car
buying a pet
Car
car accessories
car care
car features
car insurance
Car safety
car sales
car service
cat
cat behaviour
cat body language
Cat Breeds
cat food
cat insurance
comprehensive car insurance
Dog
Dog Behaviour
dog body language
Dog Breeds
dog food
Dog Insurance
dog training
eco friendly cars
Kitten
New Car
pet accessories
pet activities
Pet Adoption
pet breeders
pet days of the year
pet fun stuff
Pet Health
pet insurance
pet parenting
Pet Safety
pet services
Puppy
rescue pets
road safety
road trip
safe driving
Recent Blog:
Facebook Posts
6 days ago
Ever wonder if your insurance will cover stolen valuables if your car is broken into? Find out about contents and car insurance here. Does Insurance Cover Valuables Inside Your Car? -
... See MoreSee Less
Does Insurance Cover Valuables Inside Your Car?
Do you ever wonder if your car insurance will cover stolen valuables if your car is broken into? When it comes to contents cover and car insurance, it's1 week ago
Need to keep Fido safely contained without breaking the bank? Here are some DIY dog fence ideas to inspire you. DIY Dog Fence Ideas for Your Backyard - bit.ly/4bbGVml
... See MoreSee Less
1 week ago
Whether the woman in your world is a hooman, cat mum or dog mum (or a combination) there are heaps of fun ways to celebrate. From tail-ored goodies to purrrfect places to go, we've rounded some up. Here's when and how to celebrate pet Mother's Day in Australia. Top Ways to Celebrate [Pet] Mother's Day in Australia -
... See MoreSee Less
Top Ways to Celebrate [Pet] Mother's Day in Australia
Wondering when is Mother's Day in Australia and how to celebrate it best? Just as importantly, ask yourself whether there's a Pet Mother's Day too or ifIf you have a bad accident your car might be written off. Because a car can depreciate in value quite quickly after you buy it brand new, replacing a write off can be a costly exercise. With new for old car insurance, your insurance could replace your old car with a brand new one.
This makes a car write off sting a little less. Of course, there are certain eligibility criteria for new for old car insurance. If you’ve written off a car, you won’t automatically qualify for a new one under every insurance policy.
Let’s explore…
What is new for old car insurance after total loss?
If your new car is written off, some car insurers in Australia will replace it with a new one of the same make and model. This is what’s known as new for old car insurance, new for old car replacement, or new car in the case of total loss/write off.
Depending on your policy, your car insurance provider might also cover some of the replacement car’s on-road costs. This could be the dealer delivery free, registration fees for a year, and/or compulsory third party insurance.
If the same make and model of car is not available when it comes to new for old car insurance replacement, your insurance provider might offer you a similar car. Or, you might be able to opt for a total loss cash settlement instead up to the agreed value or market value. Read more about replacement value of your car after total loss.
Not sure what the difference is? It’s a common question. We’ve got the answers in our article ‘what’s the difference between market value and agreed value?’
How do I qualify for new for old replacement?
If your insurance provider does offer new for old car insurance, to take them up on it you’ll probably need to have a comprehensive car insurance policy instead of just CTP or third party car insurance.
Your car will need to have been assessed and be considered a total loss or a ‘write-off.’ This also has to happen from an insured event, like theft, vandalism, or a collision. If you’ve had a huge mechanical breakdown, you probably won’t have cover for it and will have to pay out of pocket.
At PD Insurance, we provide new for old car insurance in the case of total loss if:
- you have comprehensive car insurance cover, and
- a total loss occurs within 12 months of your car’s original new car registration; and
- your car hasn’t travelled more than 20,000 kilometres in that time.
It’s also worth knowing that if your car is under finance you may have to submit documents as per your insurer’s request before they’ll fund a replacement car. Carefully check your policy disclosure statement to find out more about what’s covered and what isn’t.
Comprehensive car insurance
Does new for old car insurance sound like a good deal to you? It certainly can be great relief at an awfully frustrating time in your life. Saving for a new car takes a lot of time and effort!
Hopefully, you never end up in the situation where your car is written off. Or even just seriously damaged. But if so, knowing you have comprehensive car insurance can take away some of the stress. The good news? It probably isn’t as expensive as you think, especially if you take advantage of discounts some insurance providers offer.
Why not get a PD Insurance quote and see what savings you can make with us?
Share On: