Better Car Replacement Insurance
If you are in the market for a new or used vehicle, you’ve likely come across replacement insurance options. Replacement insurance is a type of insurance policy that covers the full cost of replacing your vehicle if it’s stolen or totalled in an accident. However, not all policies offer the same level of replacement coverage. In this blog post, we’ll take a closer look at what Better Car Replacement insurance coverage is and how it can benefit you.
What is Better Car Replacement Insurance Coverage?
Better Car Replacement insurance is coverage that will pay to top up the full cost of replacing your car if it is totalled in an accident. It covers the difference between the depreciated payout from your primary insurance provider and the original amount paid for the vehicle. It is available if you have bought a used vehicle in the last 90 days. It helps protect your investment in a used car against depreciation in the event of a total loss.
This contrasts with traditional insurance policies that only cover the actual cash value of your car at the time of the accident. That means that if your vehicle is totalled, you will get less than what you originally paid for it. If you financed your vehicle, depreciation could mean that your total loss settlement is less than what’s still owed on your loan.
To get Better Car Replacement insurance, you will need to maintain your regular liability and comprehensive insurance. However, you can do things to keep your car insurance costs down. For example, you can increase your deductible and maintain a good driving record.
Is Better Car Replacement the same as New Car Replacement Insurance?
There is a difference between Better Car Replacement and New Car Replacement. New Car Replacement covers the difference between your primary settlement and the cost of a brand-new model of the vehicle. Better Car replacement covers the depreciation of the purchase price of a used vehicle. Better Car Replacement will typically be lower cost.
How does Better Car Replacement insurance work?
Better Car Replacement coverage works by providing you with the money needed to purchase a new car of the same original value as your totalled vehicle. If your car is totalled or stolen, you’ll need to file a claim with your primary insurance company. The primary insurance company will determine the depreciated value of your car at the time of the accident. A Better Car Replacement policy will then provide you with the funds needed to purchase a car with the same value that you originally paid.
What are the benefits of Better Car Replacement insurance?
There are several benefits to having Better Car Replacement coverage. These include:
- Peace of mind: Knowing that you’ll be able to replace your vehicle without losing its value to depreciation.
- Better protection: You’ll be better protected in the event of an accident or theft.
- Cost savings: While Better Car Replacement coverage is an additional cost to your regular insurance policies, it can save you money in the long run. If your car is totalled and you don’t have coverage, you may not have enough money to purchase a new car. This can result in additional expenses such as rental car fees and transportation costs.
How much does Better Car Replacement cost?
The cost of coverage varies depending on several factors, including the vehicle model, age, and purchase price. It will also depend on the length of coverage that you want. The best way to know the cost is to get a free quote.
Better Car Replacement Insurance with Obvi
A Better Car Replacement Insurance policy through Obvi pays the difference between your depreciated total loss settlement and the original purchase price of your vehicle. Not only that, but it will also add 5% to that value for every 12 months you have had coverage (up 20%) when calculating your claim!
What vehicles are eligible?
If your vehicle is 2-10 model years old and you purchased it used in the last 90 days, you can qualify for Better Car Replacement coverage. Vehicles used for commercial purposes are not eligible. You can get up to 5 Years of coverage. Deductible reimbursement on your primary insurance claim (up to a maximum of $500) is also included.
Add on Coverages Available
Plus Package: Lost or stolen key fob protection up to $500. Partial loss deductible reimbursement up to $500 with unlimited use. Extra rental car reimbursement if you exhaust coverage under your primary insurance plan up to $50 per day to a maximum of $2,500 per year.
Diminished Value: Your vehicle loses resale value after a partial-loss accident claim even after it has been repaired. If repair costs are over 25% of the vehicle’s current value, you will qualify for a cash settlement of 10% of your vehicle’s current value.
Summary
In conclusion, if you want to ensure that you have the best possible car insurance coverage, it’s essential to consider Better Car Replacement insurance. By comparing policies and working with a reputable provider, you can find the coverage you need at a price you can afford.