New Car Replacement Insurance

If your car were totaled in an accident, would you expect your insurance company to replace it with a brand-new vehicle? Probably not, but that is precisely what Acuity’s Replacement Benefits Coverage does.

Most auto insurance policies do not cover the cost of a new vehicle after a damaged vehicle is declared a constructive total loss. Insurance policies typically pay up to the actual cash value, which is the replacement cost minus depreciation. Wouldn’t it be great if you could replace your damaged vehicle with a new one of the current model year? Acuity thinks so.

What is Acuity's New Vehichle Replacement Cost Coverage?

Acuity created an optional Replacement Benefits Coverage endorsement that can be added to an Acuity auto insurance policy for a charge. As part of this endorsement, New Car Replacement Cost Coverage will pay for the cost of a new vehicle of the same make and model if an accident results in a total loss to your vehicle.

Acuity offers this special coverage when you purchase an Acuity insurance policy for a car, pickup, SUV, or motorcycle not more than two model years old. If you select Replacement Benefits Coverage, the New Vehicle Replacement Coverage feature continues until the renewal after the vehicle becomes five model years old. 

Understanding Acuity's New Car Replacement Insurance

You buy a brand-new vehicle, insure it with Acuity, and include the Replacement Benefits Coverage endorsement. Three years later, you are involved in an accident, whereby the vehicle is determined to be a constructive total loss. Acuity will pay the cost for you to purchase a new car of the current model year that is the same make and model. So, if you have a 2021 SUV and you are involved in an accident in 2024, the replacement vehicle will be a 2024 SUV.

Once your vehicle is over five model years old, you will be able to use the Actual Cash Value Plus 25% coverage. With this coverage, you would receive the actual cash value of your vehicle prior to the total constructive loss plus an additional 25% of the vehicle’s actual cash value. This could go a long way toward getting you back into a comparable vehicle that suits your needs and comfort level. The best part—this happens automatically, ensuring you stay protected.

Check with your agent to confirm whether you have Replacement Benefits Coverage. If not, contact an independent agent who represents Acuity Insurance.