If you want to protect your new vehicle (and your pocketbook), you’ll love Farmers new car replacement insurance. If your new car is eligible, you could be reimbursed for the value of a brand-new car if yours gets totaled.
New car replacement coverage is an add-on coverage offered by Farmers that reimburses you for the price of a brand-new car if your car is totaled soon after buying it.
You must already have collision and comprehensive coverage to get new car replacement insurance.
Eligibility usually extends to models less than two model years old with <24,000 miles.
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How does Farmers new car replacement insurance work?
New car replacement insurance is only available for a specific time window. Usually, this auto insurance coverage must be purchased shortly after or at the time of the new vehicle purchase (check with your agent for specifics).
Let’s say that your insured car gets totaled in a covered accident tomorrow. The car’s price tag was $50,000 when you bought it new last year—but today, the
of your vehicle is closer to $45,000 due to depreciation.
You file an insurance claim after the incident. After totaling the car, your Farmers new car replacement insurance policy will kick in to reimburse you for the cost of a brand-new car of the same make and model.
Without new car replacement, you would only be reimbursed for the ACV of the vehicle ($45,000) minus your deductible. Then, you’d have to pay out-of-pocket to buy a new car.
Be aware that you may not be able to pair Farmers’ new car replacement coverage with
. You should talk to your Farmers agent about your options if you’re looking for gap insurance.
How much does Farmers new car replacement coverage cost?
Farmers customers can expect new car replacement coverage to cost about 5% of their premium.
The national average annual cost of full-coverage car insurance is about $2,000. So if you’re the average driver, then new car replacement coverage may cost approximately $100 per year, or just under $10 a month.
How can I keep my Farmers insurance costs low?
Insurance rates depend on your personal driving record, your zip code, and other factors specific to the provider.
You can always expect to pay more for full-coverage than basic liability, but the type of coverage and the insurance products you select will definitely impact your rate.
Auto insurance companies also keep their own unique lists of discounts. For instance, Farmers,
The New Car Pledge ® is Farmers’ guarantee for new vehicles. It’s a coverage you can add to your policy that allows you to get a replacement vehicle of the same make and model, so long as the vehicle has less than 24,000 miles and is less than two model years old.
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