Allstate New Car Replacement Policy (Claims, Time Frames)

Do you know Allstate’s new car replacement policy? Well, you are at the perfect place to find the answer to such a question.

According to Allstate’s new car replacement policy, any totaled car less than two years old is eligible for the total cost of replacement. Allstate’s new car replacement coverage is a policy available to Gold or Platinum customers and means a totaled car can be completely covered for replacement.

In the following article, we look at everything you need to know about Allstate’s new car replacement policy.

Table of Contents

What is Allstate’s new car replacement policy?

Under Allstate’s new car replacement insurance, cars under two years old are eligible for replacement.

If a car is eligible, Allstate will cover the total cost of a replacement of a damaged or faulty car. Depending on the type of coverage individual policies provide, Allstate will allow replacement with the same model and make or a specific alternative.

If you do not have new car replacement insurance, Allstate will only cover the actual cash value cost of your car, which considers factors such as physical damage and financial depreciation.

This isn’t necessarily a large amount as cars depreciate quickly, and so any reimbursement may not cover the cost of a vehicle replacement.

How do you get Allstate’s new car replacement coverage?

Allstate’s new car replacement coverage is only available as part of the Gold and Platinum packages Allstate offers.

It is available under their ‘Your Choice Auto’ plan, where it is one of the optional additional policies on offer.

You can contact Allstate directly to receive a quote and check whether the coverage is right for you.

Does it cost extra to get coverage?

It does cost extra to get Allstate’s new car replacement coverage. You can expect to pay between 8% and 15% more if you upgrade to Gold or Platinum packages from a standard policy.

However, in line with the added costs, customers of these packages also receive a range of extra benefits like accident forgiveness.

How do you make a claim to Allstate?

Allstate should provide you with a personal agent, who you can contact at any time.

They should be used to file your claim, which you should then file and track through Allstate’s phone service or via the app and online portal.

You will then be offered an estimate of how much you can receive, which you can review and claim.

Who could benefit from Allstate’s new car replacement policy?

Anyone with a new car

Anyone who owns a car younger than two years old or with less than 15,000 miles on the clock is likely to benefit from the new car replacement policy.

The policy can help to provide drivers of new cars with a replacement without them having to pay out the cost of a new car.

Anyone with a car likely to depreciate quickly

Owners of a car which is likely to depreciate fast will probably see the benefit in the policy. Cars like luxury and sports cars typically depreciate more quickly than other cars.

A new car replacement policy will pay out the original amount of the car in most cases, so owners don’t lose out.

Anyone who is at risk of an accident

Any driver who is at a particularly high risk of being in an accident, whether due to a dangerous commute or frequent driving through areas of high traffic, is likely to benefit from a new car replacement policy.

Such a policy can offer a little peace of mind for anyone at risk of an accident to ensure the cost of a replacement is covered.

What other coverages are available for new cars?

Alongside new car replacement coverage, Allstate also offers two other types of coverage for a new car: repair provision coverage and loan or lease gap coverage. Let’s look at each of these policies in more detail:

Repair provision coverage can help to replace any part of a car that is damaged or irreparable, without taking away from the financial value of the car. The amount of help available is likely to depend on the policy you have and the amount of coverage available.
Loan / lease gap insurance can help cover the difference between the remaining amount on a car loan and the actual cash value a damaged car is worth. It can help you to pay the remaining payments on a loan, which you are responsible for even if the car is totaled.

Pros and cons of Allstate’s new car replacement policy

Pros

A major benefit of Allstate’s coverage is that it offers complete coverage for a replacement car as opposed to receiving the depreciated value cost. Some similar policies will cover a percentage of the total cost, whereas Allstate will provide the whole amount. This is a major plus for anyone who totals their car and requires a new vehicle.
Allstate’s definition of a ‘new car’ is any car younger than two years old or with less than 15,000 miles on the clock. Compared with other insurance providers, this is a good amount of time and considerably longer than some other providers who only cover cars for up to six months.

Cons

In order to access Allstate’s new car replacement policy, customers have to upgrade or sign up to the more expensive Gold or Platinum packages. Although policyholders in these packages have access to extra benefits, it costs on average around 11% more than a standard policy.
Unfortunately, Allstate was rated below average in terms of claims satisfaction when compared to other auto insurance policy providers. This means customers have responded less than positive when asked to rate the service they were given when dealing with Allstate.

Final Thoughts

According to Allstate’s new car replacement policy, the coverage provides the full cost of a replacement car if your own car is totaled and cannot be used.

It is available to Gold and Platinum Allstate policyholders at a slightly increased price compared with standard coverage.

It means any car under two years old is covered for the total cost of a replacement.

References

https://www.allstate.com/auto-insurance/car-replacement

https://www.forbes.com/advisor/car-insurance/new-car-replacement/