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Key points:
- With new for old car insurance, a written-off car will be replaced with a new one of the same make and model.
- If the same make and model is unavailable, your insurance provider may instead provide a similar car.
- There can be strict eligibility criteria when it comes to new for old car insurance.
How does new for old car insurance work?
If you have a new car and it is written off during the first few years of owning it, many car insurers in Australia will replace the car with a new one of the same make and model. This is known as ‘new for old car replacement’ or ‘new car in case of write-off’.
Your car will need to have been assessed as a total loss or a ‘write-off’ due to an insured event such as a collision, a natural disaster, theft or vandalism.
If the same make and model of car is not available as a replacement, your insurer will typically provide you with a similar car assuming your policy offers new for old cover. If it doesn’t, or if there isn’t one, you may be paid the vehicle’s market or agreed value, depending on your certificate of insurance.
Your insurer may also pay some of your new car’s on-road costs, including the first 12 months of registration, CTP insurance and delivery charges. If you have added accessories or modifications to your car, some insurers will also take this into account when replacing your vehicle. Depending on the circumstances of the claim, you may also need to pay an excess. Terms and conditions can vary, so it’s important to read into this carefully when you are comparing policies.
Am I eligible for new for old car replacement?
To be eligible for a new car replacement, most insurers will require that your car is less than two years old. However, this can vary depending on the insurer. A handful of insurers also offer lifetime new for old car replacement. This covers your car for life, provided you meet the insurer’s other eligibility criteria.
Some insurers also have a kilometres stipulation. This means that you won’t be able to get a new car replacement if your car’s odometer has reached a certain distance. This usually ranges from 20,000 kilometres to 70,000 kilometres from the car’s original registration, based on policies in our database.
Another common requirement for new car replacement insurance is that you must be the first registered owner of your car. That said, if you have an ex-demo car you will generally also be eligible, provided the dealer was the first registered owner.
If you have purchased your car using a car loan, your lender will also typically need to agree with your car being replaced.
What are the pros and cons of new for old car insurance?
Some possible pros of new for old car insurance include:
- You’ll get a new car equivalent to your old one if it gets written off
- The process of getting this new car will be relatively streamlined
- You’ll have the peace of mind of knowing you’re covered
However, it’s also important to be mindful of some potential drawbacks:
- The eligibility criteria for new for old replacement can be strict
- Therefore you may not be eligible if your car is too old, or is a modded or specialty vehicle
- The peace of mind of new for old cover can come with an added cost, as it tends to be more expensive than other forms of cover
Is new for old car insurance worth it?
New for old car replacement is available on most comprehensive car insurance policies as a standard inclusion, but if you’re wondering whether this kind of cover is worth it for you, it’s worth weighing up the pros and cons.
New for old cover can provide added peace of mind that your car will be replaced seamlessly if it’s written off, but it can be more expensive than other forms of cover, and can have strict criteria.
Some insurance providers may also offer lifetime new for old car insurance, but this will often also come with strict criteria – at the time of writing, Suncorp and GIO both say that they offer lifetime new for old car replacement.
When searching for the best new for old car insurance to suit your needs, you can start by comparing a range of car insurance policies using Canstar’s car insurance comparison tables.
Canstar researches and rates car insurance based on both price and features, so you can find out which ones have received a 5-Star Rating.
If you’re looking for ways to save money on your premiums, you might want to check out our list of car insurance discounts and sign-up offers currently available.
- Save 15%^ on your first year’s premium when you purchase a new Car Insurance policy online.
- 24/7 Phone & Online Claims.
- Budget Direct - Insurance Solved.
- Insurance that's a bit more you-shaped.
- Canstar's 2024 Most Satisfied Customers Car Insurance - National Award.
- Lodge a Claim 24/7 with our Advisors
- Flexible cover before, 24/7 claims after.
- Save $75 on new Comprehensive car insurance online.
- Conditions apply.
- No age-based excess.
- No excess on your first covered windscreen repair.
- Canstar 2025 Outstanding Value Car Insurance Award.
- Choose base insurance or add on optional extras. Select from a range of excess options. Lifetime guarantee on repairs authorised by Bingle.
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