New Car Replacement

driver covered by new car replacement insurance
What is New Car Replacement?
Buying a brand new car is a big investment that starts depreciating the minute you drive it off the lot. In the event of a total loss, many insurance policies will give you less than what you paid for it because of this depreciation.

If your totaled car is under one year old and has less than 15,000 miles, New Car Replacement is a standard coverage within your Liberty Mutual Auto Insurance policy that provides you with the money for a brand new car, not just the depreciated value of your old car.

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Call 1-800-837-5254


The Benefits of New Car Replacement

  • Money for a replacement car that's the same model year as your totaled car.
  • Peace of mind in avoiding the financial loss associated with owing more money on your car than it is worth.
  • Not having to worry about replacing your totaled car with an older model of lesser value.

What is Auto Gap Insurance?
When your car is deemed a total loss and you owe more money on it than it's assessed to be worth, gap insurance will cover the remaining amount you owe. Gap insurance is generally an optional coverage that you can purchase at the same time as your car. It does not provide coverage for a newer car.

New Car Replacement: A "New Car" Gap Insurance
New Car Replacement goes further than typical gap insurance because you receive payment for a replacement that's brand new, as long as your totaled car is less than a year old and has fewer than 15,000 miles.

Better Car Replacement vs. New Car Replacement
While there are similarities between these two insurance coverages offered by Liberty Mutual, here are the specifics of each:
Coverage FeatureBetter Car ReplacementNew Car Replacement
Standard coverage within auto insurance policy
Optional coverage added to auto insurance policy
Previously insured car must be a total loss
Policy deductible applies
A replacement car is provided
Replacement is the same model year as totaled car
Replacement has 15,000 less miles than totaled car
Totaled car must be less than a year old
Totaled car must have less than 15,000 miles on it
Not available for leased cars and motorcycles

Experience the standard benefits of New Car Replacement within your auto insurance policy by starting with a free quote.

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Optional coverage in some states. Availability varies by state and eligibility rules apply.
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