New Vehicle Replacement and Better Vehicle Replacement
When a vehicle is declared a total loss, replacement costs can be a major concern. New Vehicle Replacement and Better Vehicle Replacement help provide enhanced settlement options by paying more than standard actual cash value, depending on your vehicle’s age and eligibility at the time of loss.
Included with:
- New Vehicle Replacement: Included with all auto policies
- Better Vehicle Replacement: Included with Signature auto policies
Availability, limits and deductibles may vary by state and policy.
New Vehicle Replacement
New cars depreciate the moment they leave the dealership. With Amica’s New Vehicle Replacement coverage, if your new vehicle is totaled within its first year or 12,000 miles (whichever comes first), we’ll help replace it without adjusting for depreciation. That means you’re protected from losing value right when depreciation hits hardest.
This coverage may apply when:
- The vehicle was new when purchased and not previously titled or leased.
- A covered total loss occurs within 365 days of purchase or before 12,000 miles, whichever comes first.
- The vehicle carries both Collision and Comprehensive/Other Than Collision (OTC) coverages.
New Vehicle Replacement coverage pays the replacement cost of a new vehicle of the same make, model, year and equipment, with no adjustments made for depreciation or physical condition (minus any applicable deductible)
Better Vehicle Replacement
If your car is totaled, starting over shouldn’t mean stepping backward. With Amica’s Better Vehicle Replacement coverage, your settlement is based on a vehicle one model year newer than the one you were driving, helping you move forward with confidence.
This coverage may apply when:
- The vehicle experiences a covered total loss and is not eligible for New Vehicle Replacement.
- The vehicle carries both Collision and Comprehensive/Other Than Collision (OTC) coverages.
- The vehicle is not leased, antique, miscellaneous type or a non-owned vehicle.
Better Vehicle Replacement coverage pays the actual cash value of a vehicle of the same make, model and equipment one model year newer, minus any applicable deductible. Special valuation rules may apply if a newer model year is not yet available or the model has been discontinued.
What isn’t covered
These coverages don’t apply to:
- Leased vehicles
- Non-owned or substitute vehicles
- Antique or miscellaneous type vehicles
- Vehicles without Collision and Comprehensive/Other Than Collision (OTC) coverage
Real-life scenarios
New vehicle totaled within the first year
A customer’s newly purchased vehicle is involved in an accident and declared a covered total loss within the first year of ownership and before reaching 12,000 miles. The claims settlement is based on the replacement cost of a new vehicle of the same make, model, year and equipment, without depreciation (minus any applicable deductible).
Older vehicle totaled after a serious accident
A customer’s 2022 Kia Optima that has 56,000 miles on it is involved in a serious accident three years after purchase. Because the vehicle no longer qualifies for New Vehicle Replacement, Better Vehicle Replacement applies, and the settlement is based on the actual cash value of a 2023 Kia Optima (one model year newer).
Are these coverages right for you?
New Vehicle Replacement and Better Vehicle Replacement can be a good fit if you want added confidence in your settlement options after a covered total loss. It may be right for you if you want extra value beyond standard actual cash value if your vehicle is totaled in a covered loss.
New Vehicle Replacement is included with all Amica auto policies, and Better Vehicle Replacement is included with Signature auto policies. An Amica representative can help you review your coverage, confirm eligibility and explain how these features would apply to your vehicle.
Ready to decide?
Explore YourPlan auto coverage options, or talk to an Amica representative about how New Vehicle Replacement and Better Vehicle Replacement work and what’s available for your vehicle.
New Vehicle Replacement may apply to a brand-new vehicle that’s totaled within 365 days or 12,000 miles (whichever comes first), and it pays to replace the vehicle without depreciation. Better Vehicle Replacement may apply when a vehicle is totaled and no longer qualifies as “new,” and it bases the settlement on a comparable vehicle one model year newer.
Yes. Both coverages require the vehicle to carry Collision and Comprehensive/Other Than Collision (OTC) coverages.
If both coverages apply, the policy uses the option that results in the higher settlement amount.
No. These coverages don’t apply to leased vehicles.
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