New for old car insurance

Congratulations, you’re the proud owner of a new car. Naturally, you’ll want to make sure it’s protected.

New for old car insurance could replace your vehicle with a brand-new car if yours is stolen or damaged beyond repair. That means you’re covered if something happens to your shiny new motor.

Congratulations, you’re the proud owner of a new car. Naturally, you’ll want to make sure it’s protected.

New for old car insurance could replace your vehicle with a brand-new car if yours is stolen or damaged beyond repair. That means you’re covered if something happens to your shiny new motor.

Written by

Kate Hughes

Insurance expert

Last Updated

14 JULY 2023

4 min read

What is new for old car insurance?

New for old car insurance cover could offer you a like-for-like replacement if your new car is written off or stolen. It usually applies to cars under a year old, where repairs are going to cost more than the car is worth.

With new for old car cover, your insurance provider will replace your car with one of the same age, mileage, make and model. If a similar car is unavailable, they might offer you the cash equivalent to buy one yourself.

Some insurance providers offer new for old car insurance as standard. Check your policy to see if it’s included in your cover. Otherwise, you may be able to buy it as an add-on.

How does new for old car insurance work?

To qualify for new for old replacement car insurance, your car needs to meet certain criteria. These may include:

Age – your car usually needs to be less than a year old to qualify for a like-for-like replacement
Damage – your repair costs need to exceed a certain amount to warrant a replacement car
Mileage – some insurance providers set a mileage limit on new for old policies
You’re the registered owner – you must be able to prove you own the car. You also might have to prove that you’re its first registered keeper.

Depending on your insurance provider, there might be other exclusions. Check your policy’s terms and conditions for details.

Who should consider new for old car insurance?

If you’ve bought a brand-new car – particularly an expensive one that’s attractive to thieves – it’s worth considering new for old car insurance.

What incidents are covered by new for old car insurance?

Exactly what your new for old car insurance covers will depend on your policy. However, it should cover:

Theft – if your car is stolen and not recovered
Excessive damage – if your car is written off.

What incidents aren’t covered by new for old car insurance?

Depending on your policy, you’re likely to find your new for old car insurance has a few exclusions. These might include:

Superficial damage
Giving your insurance provider false or inaccurate information
Unsafe or reckless driving.

What happens if I don’t have new for old car insurance and my car is written off?

If you don’t have new for old car insurance cover, your insurance provider will offer you your car’s current market value. The problem with this is that your car will have depreciated in value since you bought it.

Is new for old car insurance worth it?

New for old car insurance could give you valuable peace of mind, as you know you’ll be able to replace your new car if it’s stolen or written off during the first year.

Top tip:

It can be hard to decide whether it’s worth getting new for old car insurance, as it’s impossible to know what will happen to your car.

Frequently asked questions

What is agreed value car insurance?

Agreed value car insurance offers an alternative to a new for old replacement car insurance if your car is written off. It tends to be for higher value cars.

When you take out your policy, you agree the cost of buying a replacement car with your insurance provider.

If your car is then written off or stolen, you’ll be paid the agreed amount.