Home > Car Insurance > How Does New for Old Car Insurance Work?
Find out what new for old car insurance is, its benefits and limitations, and whether you qualify in Savvy’s handy guide.
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Savvy Editorial TeamFact checked
Car insurance plays a vital role in protecting our vehicles, but if your car is written off replacing it can be costly and time-consuming. New for old car insurance gives you peace of mind that your insurer will replace your damaged or stolen car with a new one of the same make and model.
In this informative guide, we explore how new for old car insurance works, the benefits it offers as well as its limitations.
New for old car insurance, also known as new for old car replacement, is a feature of many comprehensive car insurance policies in Australia. If your car is written off after an insured event such as theft or damage, your insurer will provide a replacement vehicle of the same make and model, or similar if this is not available. They may also include accessories and modifications made to your original vehicle and may cover your new car’s on-road costs, such as registration, Compulsory Third Part (CTP) insurance and delivery costs.
To qualify, certain criteria must be met. Generally, the following conditions apply:
If you are not eligible for new for old cover, perhaps because your car is already too old at the time of insurance, if your car is written off you will instead receive a payout for the car’s agreed or market value, depending on what you agreed with your insurer when taking out the policy.
There are several benefits to new for old car insurance:
Despite the benefits, it’s important to be aware of potential limitations associated with new for old car replacement. Here are some factors to consider:
Disclaimer:
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