By: William Forbes
What is it?
New Auto Security is an endorsement you can add to your Erie auto policy. It provides new vehicle replacement for a vehicle under two years old, in the event of a total loss. This means if you total your new car, Erie will pay to replace your vehicle with the latest model year (minus your deductible). If your new vehicle is involved in an accident and is not a total loss, Erie will pay to repair your car without a deduction for depreciation. This coverage could be a huge financial help if you have a new car that's involved in an accident, as cars depreciate the most during the first five years you own them.
But, the endorsement is not only for new cars. If you've had your car for more than two years and you're involved in a total-loss accident, Erie will pay the cost to replace the car with a model that’s two years newer.
- New vehicle replacement - in the event of a total loss, Erie will pay to replace your new car (under two years old) with the latest model year.
- Repair coverage - Erie will pay to repair your new car without a deduction for depreciation.
- Gap coverage - Erie will provide coverage for the difference between the actual cash value of the car and the amount due on the lease/loan.
- Better vehicle replacement - For cars older than two years, in the event of a total loss, Erie will pay to replace your car with a model two years newer.
- The endorsement can be added to your policy at any time, not just with the purchase of a new vehicle.
Please get in touch with us if you have questions about New Auto Security.