December 12, 2010 Leave a Comment
A vehicle replacement insurance is an insurance cover that enables you to get a new car by taking advantage of the difference of the gap between the money paid by the motor insurance company on the gross loss and the new cost of the new car. This insurance cover is adequate for cases where there are appreciation of the cost of your car. If it is insured then the insurance company may pay for the total loss within a certain period. If the value of the car goes up then it would be a loss if you want to bridge and get the same car but a new one. This kind of insurance comes in to bridge the difference of the excess and help you get a new car.
The cover is valid until you make a claim then it ends. It covers the difference that your motor car insurance company agrees to pay and the amount that you need to spend in the event of replacing your car with another of the same model. This does not favor you even if the price has increased. This cover also has a guaranteed way of making sure you get the claim. For example, if you want to make the claim and the model of your car has been discontinued then it can give you enough funds to equivalent model.
Vehicle replacement insurance claims that you can get from this insurance depends on the level of cover that you have registered for or purchased. It is open to both owners of new and used cars. There are terms that govern this insurance policy. The car should be less than 5 years old and should have traveled less than 50, 000 miles from the time of purchase. If you finance the car using personal loan or own an outright then this would just be a great way to get insurance for your car. This cover is available for individuals and companies. Most of the covers go up to a period of four years.
If the car was not new replacement car cover will pay for the difference of getting a car of the same age as the original car at the time of purchase. This cover therefore gives you the opportunity to enjoy driving a car in a good condition without having to pay much for the car. In case the car is damaged or stolen you can therefore get another similar one or another of a similar model. You can talk to your insurance company and get the basics about the terms then purchase one for your car.
Some of the people who may need this insurance cover include those who negotiate a high discount on cars that they may not enjoy another time and people with an understanding of the possibilities of appreciation of prices of cars. In addition, people who would not want to pay for a payout in order to have a car that is equivalent to the one they have purchased. Those who travel high mileages since high mileage cars depreciate faster than low mileage cars and make purchases using can, loan and other forms of finance plans.