New for old car insurance

If your new car is written off within 2 years of you buying it, new for old car insurance can reimburse you to buy a new one. This a handy feature that's included in most comprehensive policies. We've listed some car insurers that offer this type of cover below.

Protect future you - get new for old car insurance

1 - 9 of 25

Name	Product FCI	New Car Replacement	Conditions	Roadside assistance	Accidental damage
Promoted Youi Comprehensive Finder Award		If your car is written off or stolen in the first 2 years				Summary: One of the only insurers to automatically include roadside assistance. It also won 12 out of the 22 categories in Finder's 2024 customer satisfaction awards. Winner of 12 out of the 22 categories in Finder's 2024 customer satisfaction awards. Yes, that many.	Get QuoteView details Compare	loading Fetching your data...
Coles Comprehensive Insurance		If your car is written off in the first 2 years or is under 40,000 km	If your car is written off in the first 2 years	Optional		Summary: Coles Comprehensive Car Insurance includes the benefits you’d expect, plus features like grocery replacement (up to $200 if damaged or stolen. T&C’s apply). You’ll also collect 2 Flybuys points for every $1 you spend at Coles when you link your Flybuys (max cap, exclusions and eligible purchases apply). ⭐ Current offer: Get $50 off one Coles shop when you take out a new Coles Car Insurance policy and link your Flybuys account. Offer ends 30 November 2024. Plus, save 15% on your first year’s premium when you buy online. T&Cs apply. Who it might be good for: Those who want great quality cover and more rewards with Flybuys.	Get QuoteView details Compare	loading Fetching your data...
Budget Direct Comprehensive Finder Award		If your car is written off in the first 2 years or is under 40,000kms	If your car is written off in the first year or is under 20,000 km	Optional		Summary: The 2024 winner of our Best Value Car Insurance award. It's cheaper than most, plus you can lower costs by adding age restrictions. ⭐ Current offer: 15% off your first year's premium when you take out a policy online. T&Cs apply. Who it might be good for: Anyone who wants a good value policy.	Get QuoteView details Compare	loading Fetching your data...
Qantas Comprehensive		If your car is written off in the first 2 years and is under 40,000 km	*Points awarded after 60 days. T&Cs apply.	Optional		Summary: You need car insurance so why not get one that lets you earn Qantas Points? It's good value too (it's underwritten by the same insurer as Budget Direct). ⭐ Current offer: Earn up to 40,000 Qantas Points with every car insured by 29 January. Plus save 15% on your 1st year’s premium when you purchase online. T&Cs apply. Who it might be good for: People who want more bang for their buck with Qantas Points.	Get QuoteView details Compare	loading Fetching your data...
Youi Comprehensive Finder Award		If your car is written off or stolen in the first 2 years				Summary: One of the only insurers to automatically include roadside assistance. It also won 12 out of the 22 categories in Finder's 2024 customer satisfaction awards. Winner of 12 out of the 22 categories in Finder's 2024 customer satisfaction awards. Yes, that many.	Get QuoteView details Compare	loading Fetching your data...
ALDI Comprehensive		If your car is less than 2 years old and written off				Summary: ALDI's comprehensive insurance policy covers your car for an agreed value and a variety of policy benefits. Who it might be good for: Ideal for those seeking competitive coverage limits, though other products may have higher limits.	Get QuoteView details Compare	loading Fetching your data...
Huddle Black Comprehensive		Up to 3 years from first registration, if first owner	Yes - If your car is written off in the first 3 years			Summary: This goes further than most insurers. You get up to 2k for stolen keys, roadside assistance and rental car excess cover (for car rentals in Australia). Who it might be good for: Those who want top cover for their car.	Get QuoteView details Compare	loading Fetching your data...
QBE Comprehensive Green Company		If your car is written off in the first 3 years and is under 60,000 km	*New comprehensive policies only. T&Cs apply.			Summary: Finder's best-rated Car Insurer for Customer Satisfaction in 2021/2022 and Green Insurer for the last 3 years. ⭐ Current offer: Save $75 when you purchase a new comprehensive policy online. T&Cs apply. Who it might be good for: Those who want a trustworthy insurer and more cover than other brands, such as 3-year new car replacement (e.g. they'll give you money for a new car for up to 3 years if yours is written off).	Get QuoteView details Compare	loading Fetching your data...
ROLLiN' Comprehensive		If your car is a total loss as a result of a covered event and has less than 15,000kms on the odometer	If your car is a total loss as a result of a covered event and has less than 15,000kms on the odometer.			Summary: One of the most cost-effective insurers for under 25s, according to Finder research, with no aged-based excess. ⭐ Current offer: Get 10% off the base premium for the first 2 consecutive monthly policies and up to a 15% potential monthly discount from your 3rd month for being a safer driver. Minimum premiums may apply. Underwriting criteria, limits, exclusions, and T&Cs apply. Who it might be good for: Young drivers looking to keep costs down and anyone who’d like to get more flexibility from their car insurance.	Get QuoteView details Compare	loading Fetching your data...
Huddle Comprehensive		Up to 2 years from first registration, if first owner	If your car is written off in the first 2 years	Optional		Summary: Huddle's comprehensive policy will cover you if your vehicle is damaged or lost as a result of a collision, a natural event, a malicious act, theft or fire. It also includes up to $500 for essential repairs. Who it might be good for: Someone who drives less than 15,000 km a year can opt for Pay As You Drive cover.	Get QuoteView details Compare	loading Fetching your data...

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What is new car replacement?

Under most comprehensive policies, if your brand new car is declared a total loss within two years of purchase, you are eligible to have it replaced with another unused vehicle of the same type. Many insurers also specify they will only replace a new car if it has 40,000km or less on the odometer.

Is new car replacement worth it?

Most comprehensive policies, with a few exceptions, will automatically include new for old replacement cover. However, if you're wondering whether it's worth it, consider the following:

• Do you have a new car? First and foremost, it's only worth it if you are eligible. In most cases, your car needs to be less than 2 years old for you to be covered. There is also sometimes a 40,000km odometer limit.
• Do you live in an area prone to floods, storms or natural disasters? As Australia's climate crisis intensifies, the chances of extreme weather where you live increases. If your new car was written off due to an act of nature, a new car replacement benefit would ensure you got either one of the same model or of the same market value.
• Could you afford to replace your new car? New cars are expensive. Most of us couldn't afford to just go out and buy a new one if ours was written off. New for old replacement ensures you don't have to worry about that.
• What about if you're in a crash? New car replacement is designed to help you financially in case your car is written off. In most cases, this is because of a collision. If you're willing to take the risk with such a big investment, then new car insurance probably isn't worth it for you. Otherwise, it's a really helpful benefit you'll be thankful you got if something goes wrong.

Does it cost extra to get new for old car insurance cover?

Not really. Basically, if car insurers didn't offer it, it probably would result in very slightly cheaper premiums. However, most automatically include it in their comprehensive car insurance policies. Budget Direct, Youi, Coles, Virgin, Qantas and Real all cover new car replacement. If you want to go with a major provider, it's probably not going to cost you any more money.

One of the few car insurers to offer it as an optional extra is Bingle. However, if you wanted to add new car replacement on to a Bingle comprehensive policy, it'll only cost you around $2* more a month.

_{*$62.21 without new for old and $64.45 with new for old, based on a 30 year old male driving a 2019 Toyota Corolla (automatic).}

What are my options?

New car replacement cover is normally included as a standard feature of comprehensive car insurance policies. Some insurers even offer new-for-old replacement for the life of your car under some circumstances. This is normally sold as an extra or as part of a top-end comprehensive policy and is subject to additional criteria.

When am I eligible for new car replacement?

• You must be the first registered owner of the car.
• You are often eligible for new car replacement even if the vehicle was pre-registered as a demo model by the dealer, but this is not the case with all insurers.
• If your vehicle was purchased with the aid of a car loan, your credit provider must give permission for the original vehicle to be replaced with a new one.

What happens after my car is replaced?

This varies from insurer to insurer. In some cases, the insurer will transfer your policy to the new vehicle. In others, your cover ends and you must obtain a new policy for your replacement car. Read the product disclosure statement (PDS) carefully to know exactly what rules apply.

In what situation would I receive a replacement vehicle?

Most insurers will offer a new car replacement if your vehicle is a total loss, usually defined by three criteria.

• Your vehicle was stolen and could not be recovered for a specified period of time, for example 14 days.
• The cost of repairing your vehicle exceeds the sum insured.
• Your car cannot be repaired well enough to ensure that it will be safe to drive.

What kind of car will I receive?

• Same make, model and series. The replacement car will basically be the current version of the car that was insured.
• Accessories and modifications included. If you loaded your new car with expensive optional extras, most insurers agree to provide you with a replacement vehicle kitted out in the same way.
• On-road costs are covered. Most insurers will cover compulsory third party (CTP) insurance and throw in stamp duty plus 12 months’ registration.

What type of exclusions are there?

• You will usually not be covered for any extended warranty you purchased for the original vehicle.
• A basic excess often applies, but some insurers will waive this if your car is written off in an accident where you were not at fault.
• Some insurers stipulate a maximum tare weight limit for the vehicle to be eligible for new car replacement.

What are the limitations of new car replacement plans?

The main pitfall to be wary of with new car replacement insurance is its validity period. As soon as your car is more than two years old, or once you’ve crossed the 40,000km limit (if this applies to your policy), your sum insured will plummet if you have chosen market value rather than agreed value on your insurance.

Another risk is that a similar replacement car may not be available. This is particularly relevant if you’ve forked out for a policy that features a lifetime new-for-old replacement option. Some insurers attempt to avoid supplying a brand new vehicle on the basis they can’t find a suitable replacement, especially if the alternative is to pay you market value instead.

If you are faced with this problem, it is usually worth searching for a replacement vehicle yourself. If you succeed in finding one within the time limit specified on your policy, the insurer is obligated to deliver it as your replacement.

What are the alternatives to new car replacement?

• Agreed value car insurance. Even if your car is less than two years old, you will usually not be eligible for new car replacement if you are not the first registered owner. However, you can estimate how much a new replacement vehicle would cost and negotiate an agreed value to cover this with your insurer.
• New-for-old lifetime insurance. Some insurers will replace your car with a new one even after its second birthday, if your vehicle has been continuously insured under a top-end comprehensive policy within 13 months of purchase. In this case, the insurer has the right to decide on a suitably similar new car, considering parameters such as engine size, type of finish, optional extras and so on.

Comprehensive car insurance policies that offer New Car Replacement

Written by

Gary Ross Hunter

Editor, Insurance

Gary Ross Hunter was an editor at Finder, specialising in insurance. He’s been writing about life, travel, home, car, pet and health insurance for over 6 years and regularly appears as an insurance expert in publications including The Sydney Morning Herald, The Guardian and news.com.au. Gary holds a Kaplan Tier 2 General Advice General Insurance certification which meets the requirements of ASIC Regulatory Guide 146 (RG146). See full bio

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