So totaled my '23 Kia Niro (15k miles) 2 weeks after i bought it used. Accident was my fault i own that, didn't see a left turn signal turned red. My insurance company (Good hands people) offer "Auto replacement protection" which i and now happy I added. The endorsement language says that it the covered vehicle was purchased used then when determining my settlement amount they will pretend its 1 year newer with 20k less miles. Any idea on how that could play out since my car had less than 20k miles? If i had purchased the car new, they would be settling based on the price of a 2025 brand new. I'm guessing they are just going to value it with whatever '24 comp they can find and add mileage credit to the $. But i do think there is a difference between taking 20k miles off a car with 50-60k miles is different than the first 20k miles on a new car. Does that make sense?
Auto Replacement protection Total loss
byu/MajorMink inInsurance
Posted by MajorMink
1 Comment
I’m not with All State, but here’s a copy/paste from an All State sub where a supposed employee says:
>**1. Eligibility:**
>Your car must be 15 model years old or newer during the policy period for this coverage to apply.
>You must also have both Collision and Comprehensive coverage on the vehicle.
>**2. Replacement Provision (Total Loss):**
>If your car is totaled (but not by fire, theft, larceny, or flood), they’ll pay to replace it as follows:
>If you’re the original owner and the car is 2 model years old or less, they’ll pay for a brand-new car of the same make and model (latest model year available).
>If the car is older than 2 years, they’ll pay you the value of a car that is one model year newer and has 20,000 fewer miles than your totaled car.
>**3. Repair Provision (Not a total loss):**
>If your car is damaged but not totaled, they’ll pay to repair it without deducting for depreciation. This does not apply to fire, theft, larceny, or flood losses.
>**4. Loan/Lease Gap Provision:**
>If you owe more on your loan/lease than the car’s actual cash value (ACV), they’ll pay the difference.
>This applies only to the original loan or lease.
>They subtract overdue payments, previous negative equity rollovers, prior damage, early termination refunds, etc.
>**5. Limitations:**
>This coverage is not automatic on replacement or additional vehicles. You must specifically add it.
>It becomes useless after 15 model years.
>It’s excess over other collectible insurance.
So, does this conflict with the language in your policy? Because the wording on this would suggest that since your car is 2 model years old or less, you should get the value of a brand new car of the same make and model. But obviously, that’s based on the assumption that the above was correct and it matches the policy language in your auto replacement endorsement.