New Car Replacement

What is New Car Replacement?

If your totaled car is under one year old and has less than 15,000 miles, New Car Replacement is an optional coverage for 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.
New Car Replacement Benefits

  • Get 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.
Better Car Replacement vs. New Car Replacement
While there are similarities between these two coverage options from Liberty Mutual, here are the specifics of each:
Coverage Feature
Better Car Replacement
New Car Replacement
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 is one model year newer than 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
Coverage Feature
Optional coverage added to auto insurance policy
Better Car Replacement

New Car Replacement

Previously insured car must be a total loss
Better Car Replacement

New Car Replacement

Policy deductible applies
Better Car Replacement

New Car Replacement

A replacement car is provided
Better Car Replacement

New Car Replacement

Replacement is the same model year as totaled car
Better Car Replacement

New Car Replacement

Replacement is one model year newer than totaled car
Better Car Replacement

New Car Replacement

Replacement has 15,000 less miles than totaled car
Better Car Replacement

New Car Replacement

Totaled car must be less than a year old
Better Car Replacement

New Car Replacement

Totaled car must have less than 15,000 miles on it
Better Car Replacement

New Car Replacement

Not available for leased cars and motorcycles
Better Car Replacement

New Car Replacement

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.

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

Optional coverage in some states; availability varies by state. Eligibility rules apply.