Coverages you should consider when you buy a new car:
New Car Replacement
If your brand new car is totaled within the first year, you’ll be paid the full value of the car you lost or a comparable model. Without this coverage, you’d be paid Actual Cash Value, which would subtract depreciation. New cars depreciate the second they drive off the lot, so this coverage can save you thousands of dollars if you have to replace your new car in the first year.
Loan/Lease Gap Coverage
If you finance a new car through a lease or a loan, this covers the gap between the Actual Cash Value and the amount you owe. Without Gap coverage, you’d be on the hook for paying the difference between your loan/lease amount and the depreciated value of the vehicle.
Original Equipment Manufactured Parts (OEM)
Most leases require that you return the vehicle in good condition, with original equipment manufactured parts. For example, if you have a BMW, the lease may require that you only use BMW parts for repairs.
Most auto policies will pay for aftermarket parts if your car is damaged, which may not be from the same manufacturer as your car. With OEM coverage your policy will pay to replace damaged parts with new OEM parts. This coverage is important if you have a lease or if you would prefer brand new OEM parts.
If you’re investing in a new car, make sure you have the protection you need. Give us a call or Request a Quote to get coverage tailored to your needs.
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