ensures that if your vehicle is totaled, you’ll be reimbursed with enough money to get a car of a similar make/model. Coverage can vary, with some policies offering the option to repair the vehicle instead of replacing it.
When deciding what’s best for your vehicle, it’s important to look at the bigger picture.
covers any difference between the amount you owe on your loan and the actual cash value of your vehicle (original price minus depreciation).
If your vehicle was totaled tomorrow, would you be able to pay off your loan? Or would you experience financial hardship?
If you wouldn’t have an issue paying off your loan, new car replacement insurance may be a better option for you as you’ll be able to get into a new vehicle faster.
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.