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Find out what new for old car insurance is, its benefits and limitations, and whether you qualify in Savvy’s handy guide.
Fact 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:
Select your car make and find out how much it may cost to insure, read helpful guides and compare quotes.
Disclaimer:
Savvy (ABN 78 660 493 194, ACR 541 339) provides readers with a variety of car insurance policies to compare. Savvy earns a commission from our partnered insurers each time a customer buys a car insurance policy via our website. All purchases are conducted via our partners’ websites. The integrity of our comparison service is unaffected by our partnerships with those businesses and our effort remains to bring further brands that do not already use our comparison service onboard.
Savvy’s comparison service includes selected products from a panel of trusted insurers and does not compare all products in the market. Any advice presented above or on other pages is general in nature and doesn’t consider your personal or business objectives, needs or finances. It’s always important to consider whether advice is suitable for you before purchasing an insurance policy. We always recommend readers to consult the Product Disclosure Statement (PDS) of different policies before purchasing your car insurance.
Quantum Savvy Pty Ltd (ABN 78 660 493 194) trades as Savvy and operates as an Authorised Credit Representative 541339 of Australian Credit Licence 414426 (AFAS Group Pty Ltd, ABN 12 134 138 686). We are one of Australia’s leading financial comparison sites and have been helping Australians make savvy decisions when it comes to their money for over a decade.
We’re partnered with lenders, insurers and other financial institutions who compensate us for business initiated through our website. We earn a commission each time a customer chooses or buys a product advertised on our site, which you can find out more about here, as well as in our credit guide for asset finance. It’s also crucial to read the terms and conditions, Product Disclosure Statement (PDS) or credit guide of our partners before signing up for your chosen product. However, the compensation we receive doesn’t impact the content written and published on our website, as our writing team exercises full editorial independence.
For more information about us and how we conduct our business, you can read our privacy policy and terms of use.
© Copyright 2024 Quantum Savvy Pty Ltd T/as Savvy. All Rights Reserved.
© Copyright 2024 Quantum Savvy Pty Ltd T/as Savvy. All Rights Reserved.
Quantum Savvy Pty Ltd (ABN 78 660 493 194) trades as Savvy and operates as an Authorised Credit Representative 541339 of Australian Credit Licence 414426 (AFAS Group Pty Ltd, ABN 12 134 138 686). We are one of Australia’s leading financial comparison sites and have been helping Australians make savvy decisions when it comes to their money for over a decade.
We’re partnered with lenders, insurers and other financial institutions who compensate us for business initiated through our website. We earn a commission each time a customer chooses or buys a product advertised on our site, which you can find out more about here, as well as in our credit guide for asset finance. It’s also crucial to read the terms and conditions, Product Disclosure Statement (PDS) or credit guide of our partners before signing up for your chosen product. However, the compensation we receive doesn’t impact the content written and published on our website, as our writing team exercises full editorial independence.
For more information about us and how we conduct our business, you can read our privacy policy and terms of use.