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Car replacement assistance versus gap insurance.

Car replacement assistance and gap insurance are both intended to help you financially if your car gets totaled or stolen. If that happens, your standard auto policy will only pay you the vehicle's actual cash value (ACV), or what it costs to replace it minus depreciation. If you're making car payments, you could get stuck paying the difference between what you owe and what the insurance company pays for the loss.

Standard gap insurance will pay off your loan, but nothing more. Car replacement assistance pays you 20% more than the car's actual cash value, whether you're making car payments or not. The money goes directly to you, so you can decide how to use it.

What does car replacement assistance cover?

Covers

  • Owned or financed vehicle on your auto insurance policy
  • When you're in an accident and your vehicle is declared a total loss
  • When your car is stolen and isn't recovered

Doesn't cover

  • Leased vehicles or vehicles you don't own
  • Your deductible after you file a claim
  • Mechanical issues like a faulty transmission, radiator or battery
  • Medical costs, lost wages and property your auto policy typically covers in other ways

Why get car replacement assistance?

Car replacement assistance goes beyond standard gap insurance to help you get back on the road.

  • 20% more than actual cash value

    You can pay off your car loan or put the extra cash toward a replacement vehicle.

  • Add coverage any time

    Your vehicle can be any age and you don't have to be the original owner.

  • You don't pay interest

    Car replacement assistance isn't rolled into a loan, so you don't pay interest on the cost.

How does car replacement assistance work?

If you owe more than your vehicle is worth

Let's say you owe $21,500 on your car when it's totaled. But its actual cash value is only $18,000. Your insurance would pay your lender $17,500. That's the actual cash value minus your $500 deductible. So, your new auto loan balance would be $4,000. Car replacement assistance would pay you an additional 20% of the actual cash value. That'd be $3,600 you can use any way you want. You could pay off some of your remaining auto loan balance or put a down payment on a new car.

If your vehicle is worth more than your loan balance

You owe $15,000 on your car when it's totaled. The actual cash value of your car is $18,000. Your insurance would still pay your lender $17,500. Your lender would return the $2,500 overpayment to you, and car replacement assistance would pay you the $3,600 to use how you want.

How much does it cost?

The cost of car replacement assistance varies based on the age, make and model of the vehicle. To find out how much it would cost for you, get a quote. Keep in mind that you'll also need collision and comprehensive coverage on the vehicle.

Car replacement assistance FAQ

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