Congratulations!
After hours of online research, checking safety ratings, comparing features, and a few test drives, you finally drove home in your brand-new car. Now that the paperwork is signed and the keys are in your hand, there’s just one more thing to make sure your investment is fully protected—the right auto insurance coverage.
While standard auto insurance is essential for every vehicle, new cars come with unique risks and opportunities for better protection. Before you cruise off on that first road trip, let’s go over a few optional coverages worth considering:
New Car Replacement Coverage. Brand-new cars lose value the second you drive them off the lot. If your car gets totaled or stolen within the first year, your standard insurance will likely reimburse you for its depreciated value—not what you paid for it.
With new car replacement coverage, you’ll be covered for the cost of a brand-new version of the same vehicle (or one that’s similar), so you’re not left settling for less after a major loss.
Loan or Lease Gap Coverage. If you financed or leased your vehicle, there’s a good chance you owe more than what your car is currently worth. If the car is stolen or declared a total loss, your regular policy will only pay for the current market value—not what’s left on your loan.
That’s where gap coverage comes in. It covers the difference between what your insurer pays and what you still owe, so you don’t end up making payments on a car you no longer have.
OEM Parts Coverage
When your car is repaired after an accident, many insurance policies cover generic or aftermarket parts. But if you want original manufacturer parts—the same ones your car came with—this optional coverage is for you.
OEM (Original Equipment Manufacturer) parts coverage ensures your repairs are made using factory-quality components designed specifically for your make and model. Whether it’s a Honda, Ford, or luxury brand, OEM parts can help maintain performance and value.
OEM parts replacement. OEM (original equipment manufacturer) parts are often preferable to other aftermarket parts because they are made specifically for your make and model of vehicle. So if you want your Honda repaired with Honda parts, or your Mercedes to only have official Mercedes parts, this coverage is for you. When you buy this optional coverage, it’s added to your existing Comprehensive and Collision coverage so that all repairs or replacements made to your damaged car will include new OEM parts where available.
Protect Your Investment with the Right Coverage
Buying a new car is a big step—so make sure your insurance keeps up. From protecting your loan to preserving your upgrades, Olde Towne Insurance is here to help you choose a policy that fits your vehicle, your lifestyle, and your peace of mind.
Want to review your current auto policy or add new car coverage options?
Give us a call today at
(540) 775‑7070 or
contact us online to get started.
www.oldetowneins.com
*This content is developed from sources believed to be providing accurate information. The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. Individuals are encouraged to seek advice from their own tax or legal counsel. Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel. Neither the information presented nor any opinion expressed constitutes a representation by us of a specific investment or the purchase or sale of any securities. Asset allocation and diversification do not ensure a profit or protect against loss in declining markets. This material was developed and produced by Advisor Websites to provide information on a topic that may be of interest. Copyright 2021 Advisor Websites.