Replacement Auto Value Insurance

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What Is Replacement Value Auto Insurance?

Replacement value auto insurance is the type of coverage you don’t want to be without if your car is totaled in an accident. While you have to carry comprehensive and collision coverage, sometimes the damages are too extensive to repair the car. This usually has to do with the value of the vehicle and the estimated cost of repairs. In that case, the vehicle is considered totaled. 

Without replacement value auto insurance, your insurance will only cover the value of the vehicle. Whether you have a new or used car, your vehicle is typically not worth as much as it would cost to buy a replacement car of the same type. Either you have to make do with a vehicle that’s older or in worse condition than the one you had, or you have to come up with the difference out of pocket. Replacement value auto insurance covers the actual cost to replace your car.

How Does It Work?

How Does It Work?

When you have replacement value auto insurance, you don’t have to worry about getting a replacement for your car. Depending on the insurance company, they may either help you get a replacement vehicle or reimburse you for the amount it actually costs to buy a vehicle that’s comparable to the one that was totaled. 

Not every insurance company offers replacement value car insurance. You also have to protect your vehicle with collision and comprehensive coverage to qualify for this type of coverage. Some insurance agencies only offer this type of coverage for newer cars. Our team can help you find the policy that’s right for you and your vehicle.

Gap Insurance vs. Replacement Value Auto Insurance

Gap insurance is more readily available than replacement value auto insurance. Your gap insurance helps you pay off the loan if your car was totaled in a crash and you owe more than the car is worth. However, it doesn’t help you get a replacement for your vehicle. Only replacement value auto insurance can do that.

Is Replacement Vehicle Insurance Worth It?

Our first priority is helping you take care of yourself and your family. We want to learn more about your personal situation, identify your dreams and goals, and understand your tolerance for risk. Long-term relationships that encourage open and honest communication have been the cornerstone of my foundation of success.

FAQs about Replacement Value Car Insurance

Can I Get Replacement Value Auto Insurance?

Replacement value auto insurance isn’t available with every car insurance company. However, we work with multiple highly rated insurance agencies and can help you find the right replacement value insurance for your vehicle. We’ll find you the best coverage for the lowest premiums. You also have to carry collision and comprehensive coverage for your car to qualify for replacement value coverage.  

Do I Need Gap and Replacement Value Coverage?

Gap insurance protects you from owing money if your car is totaled in a crash. If you have a loan or a lease, gap insurance will cover the difference between the payout and your loan or lease amount. You’ll essentially start off where you were before you bought or leased the car. If you don’t have a lease or a loan, consider replacement value coverage for your peace of mind. 

Is Replacement Value Auto Insurance Worth It?

How much is it worth to have that peace of mind, knowing a car crash won’t jeopardize your financial situation? The additional premiums for replacement value insurance might be worth it for you. If you drive a newer or more expensive vehicle, this extra coverage is even more important. Talk to one of our insurance specialists to find out how much replacement value car insurance costs in your situation. 

We’ll Help You Get the Best Coverage

Our experienced insurance agents are here to help you get the insurance coverage you need. We work with many reputable insurance carriers to get you the best coverage for an affordable price. Call us today and ask us about replacement value auto insurance.