New cars depreciate in value quickly; the compensation a standard auto insurance policy provides may only be enough to purchase a used car as a replacement. The New Auto Security Coverage Endorsement protects your new vehicle against depreciation for up to two years.
The car insurance endorsement includes:
- Lease/loan security – Covers the difference if you owe more on your vehicle than its current value, and it is a total loss. Coverage applies to vehicles on lease or auto loan for up to seven years.
- Replacement cost – Erie Insurance will pay to replace your car if it is two years old or less and is a total loss. The Policyholder will receive a new car of the same make and model. If the model is no longer available, the insured will be offered a similar vehicle. (The replacement coverage is not available on leased vehicles.)
- Repair coverage – ERIE will pay to repair your vehicle, without a deduction for depreciation, if it is two years old or less and is not a total loss.
This endorsement must be added to a new vehicle within 60 days of the lease/purchase of the vehicle and the Policyholder must have purchased comprehensive and collision insurance coverage. This endorsement is not available in New York or North Carolina.
Contact an Erie Insurance Agent for more information about new car replacement coverage.