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How does USAA car replacement assistance work?
I recently bought a new car and have insurance through USAA that meets the minimum requirements in my state. However, since I currently owe more than I own on my car, I’m unsure what add-on insurance policies I should get. How does new car replacement insurance work, and should I get it?
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
USAA
new car replacement assistance
—actually called car replacement assistance—is an add-on car insurance
policy that helps cover the cost of purchasing a new vehicle if you’re involved in an accident and your car is totaled.Here’s how it works: If your car is totaled and you have this coverage, USAA will add an extra 20% to your totaled car’s actual cash value once your claim is approved, which you can then put towards purchasing a replacement vehicle.
Keep in mind: This policy is only available if you have a full-coverage policy that includes
collision
and comprehensive coverage
through USAA. It’s also not available for non-owned cars or leased cars.Although the exact requirements may vary between companies, you’ll need to meet some requirements before you can add on this policy:
- Your vehicle is less than 5 years old (not required with USAA)
- Your vehicle has less than between 15,000 and 24,000 miles
- You are the first owner
This coverage isn’t mandatory, but it can be a great add-on for drivers with newer cars to provide additional financial protection.
View full answer
- Gregory R.
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