car accident - personal auto insurance coverage westchester new york
  • By Allan M Block Blogging Team
  • Posted July 18, 2020

Buying A New Car - “Replacement Cost” Car Insurance Coverage

There is a lot to consider when buying a brand-new car. For example, what if you get into an accident the moment you drive off the dealer's lot? Will your new car be replaced at its original cost?

Many insurance carriers offer replacement cost coverage (typically for the first couple of years of ownership), but you must elect this coverage and have it designated for the car that you are driving off the lot.

Because a car's value depreciates so much within a few years of ownership, it is important to consider replacement cost coverage at the beginning of a car's life. In the event of a total loss, you would probably expect to replace your new car with a car of equal cost — not something 20% lower in value.

If you are purchasing a high-end vehicle, you should also ask your agent if your insurance pays for new car parts or after-market parts after an accident. You must ask yourself if you think it is acceptable to put a used motor component into your high-end vehicle within a year of purchase, or if you would want brand-new parts. Some insurance carriers offer this coverage; others do not.

For more information or answers to your insurance questions, contact us at Allan Block Insurance Agency,, located in Tarrytown, NY in the heart of Westchester County, a key business district near New York City.  We write auto, home, renters, condo, co-op, personal, business, life and group insurance for clients locally and in NYC, CT, NJ, PA, MA and many other states. The Professional Agency with the Personal Touch.