The Hanover Insurance Group

Don't let a totaled car total your wallet

You've probably heard that a new car loses value the second you drive it off the lot. Unfortunately, it's true.

So, consider what would happen if your new car ended up totaled in an accident, or because a tree fell on it during a storm. The amount in insurance coverage you would receive would be equal to the value of the car at the time of the accident and not the full replacement cost of the same vehicle new. The result could be a difference between your coverage and what it would cost to replace your car. It's a difference that you would pay out of your pocket.

Fortunately The Hanover can offer a way to help. Actually, two.

Broken Tree - Landed on Car

Scenarios and solutions New car replacement guard Newer car replacement
If your car is: Less than one year / 15,000 miles More than one year / 15,000 miles
And, that car is totaled, you receive the value of: The replacement cost of your vehicle The make, model and equipment of the same vehicle – one year newer
The added benefit: Depreciation is not factored in You receive up to 120% of the vehicle's value
Without this coverage: You may not have enough coverage to replace your vehicle with the same model without paying out of pocket. You may not have enough coverage to replace your vehicle with the same model without paying out of pocket

Protecting cars, protecting value

Totaling your car is bad enough without paying out of pocket. Contact your independent insurance agent today to learn about new and newer car replacement coverage.


Disclaimer: This article is provided for informational purposes only and does not provide any coverage. It does not purport to address every possible legal obligation, hazard, code violation, loss potential or exception to good practice.

LC 2017-538