'New for old' car insurance - is it worth it?

[Evil Roy]

I've seen ads regarding comprehensive motor insurance where if you get the option within two years of the car being purchased (and you are the original owner), if the car is a write-off you'll get a replacement new car of the same model, etc.

Is this worth the extra cost? Is there fine print that you really have to be aware of?

[usernametaken]

always make sure you tell them of all modifications etc... otherwise you'll be giving them an out.

[MAGPIE]

I had this when I bought my last Subaru, it was just a standard feature of the Subaru Insurance and didn't cost extra plus it was for three years.

Only problem was from about two years and six months onwards I kept wanting to throw it into a pole so could get another newie.

[danzvtil]

my ex bought a honda, insurance thru the dealer (allianz)included new for old for 4 yrs, only cost 15 per month more than a standard policy with some other inclusions i cant remember.
After 5 yrs we went back to a standard comp policy for 20 bucks less per month.

[EDManual]

I did use this once.
Triton was written off but hardly. .. I'm sure they would have gotten a good price for it at the auctions. Was about a year and a half old glr diesel. 85k needed tyres and timing belt done. Got a Newie!

[Franco Cozzo]

Totalled my Focus about 4 weeks after buying it new from the dealership floor, had to fight tooth an nail for AAMI to replace it with a new car.

[sneaky]

i think a relo had their prado written off with new for old - but the spec level they had wasn't made anymore so they were offered a base model as replacement. relo was not happy as they were out of pocket the difference between base model and the spec level they had..

can't remember if they had any luck fighting it, but it might be worth checking the fine print for details on spec levels and what will be offered if yours is written off

[Itsme]

New for old is standard on my policy so I think it is OK, I think most insurance companies are now introducing this feature to get you to sign up with them.

[DRU076]

Originally Posted by Evil Roy

I've seen ads regarding comprehensive motor insurance where if you get the option within two years of the car being purchased (and you are the original owner), if the car is a write-off you'll get a replacement new car of the same model, etc.

Is this worth the extra cost? Is there fine print that you really have to be aware of?

New for old is a waste. It comes down to economics. If an insurer can repair the vehicle cheaper than cost of replacement they will.

I experience a fight with NRMA for 2 years after they put me back on the road with a misaligned chassis frame front to rear after being hit from behind.

Their solution was to put a castor kit in the front and then set the car so it would not crab down the road... Do you think it would wear its tyres evenly after that....

I ended up trading a $30k car for only $15k as a result of their cheap repairs and stand over tactics....

They work to +/- 3mm rule regardless of the manufacturers body repair manual stated all measurements must be symmetrical....

[FormulaFG]

Be careful with new for old.

My uncle had a fight with QBE back in the late nineties. He bought a brand new VT Clubsport series I. Had the 5L engine in it. 12 months later it got stolen and the insurance company tried to buy him a second hand one.

The problem was Holden had released the VT series II and upgraded the engine to the 5.7L. Their argument was the car he owned was technically no longer being made.

He saw red and being an ex cop went to town fighting them. He went down to the local Holden dealer and managed to get the factory to make him a new one with a 5L ute engine in it. Fortunately for him the VS ute was still being made and running the old engine.

QBE not happy but they paid and he got his new car.

[superfly]

Originally Posted by Evil Roy

I've seen ads regarding comprehensive motor insurance where if you get the option within two years of the car being purchased (and you are the original owner), if the car is a write-off you'll get a replacement new car of the same model, etc.

Is this worth the extra cost? Is there fine print that you really have to be aware of?

It doesn't cost any extra, it's just offered as part of their full comprehensive insurance policy. When I bought my XR50 in Oct 2011, I went with RACQ that offer the 2 year new car replacement. Insurance cost me $500. When the car turned 2, my insurance has now gone up to $580 still with RACQ.