New Car Repalcement Coverage?

[NY_Rob]

Was just thinking... which is something that usually gets me in trouble
Say our $73K pre-March 2022 priced R1T gets totaled or stolen shortly after delivery. To replace with a new feature matched R1T at post March 1/2022 price will be $90K. A $17K difference... not something pleasant to consider.

Some ins co's offer "new car replacement" coverage which would cover the difference between pre and post March prices. Anyone get actual quotes from their insurance co for "new car replacement" coverage on their Rivian?

Not discussing gap ins, interested in hearing about "new car replacement" coverage.

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[SANZC02]

Was just thinking... which is something that usually gets me in trouble
Say our $73K pre-March 2022 priced R1T gets totaled or stolen shortly after delivery. To replace with a new feature matched R1T at post March 1/2022 price will be $90K. A $17K difference... not something pleasant to consider.

Some ins co's offer "new car replacement" coverage which would cover the difference between pre and post March prices. Anyone get actual quotes from their insurance co for "new car replacement" coverage on their Rivian?

Not discussing gap ins, interested in hearing about "new car replacement" coverage.

This might be a good question for @DuckTruck. My understanding is the insurance settlement should be based off what the trucks value was at the time of the incident.

An example that comes to mind is if you bought a used car 18 months ago, it is probably worth more money today than when you bought it. If it was totaled what you paid for it back then should not impact the settlement amount.

 

[crashmtb]

New vehicle replacement coverage generally means the replacement cost of the vehicle. Nothing to do with MSRP at time of purchase.

i‘ve always done this with new and/or leased vehicles.

costs like $300/year here. Worthwhile.
Same with loss of use coverage.

 

[sub]

It seems like right now "new replacement" coverage should cost a lot less than a policy that looked at the cost of finding a used replacement. Unless the insurance company was also going to pay the 2 years worth of rental fees that you would incur while you waited for the new replacement.

Right now, a used R1T costs a lot more than MSRP even with the increased MSRP. You can place a new order for 90K, but right now it might be hard to find someone willing to sell you their R1T for less 2x that amount.

 

[COdogman]

I have always gone for the new car replacement option as well. It's one of those things that's easy to talk yourself out of, but I feel it's worth it.

 

[NY_Rob]

Thanks @crashmtb...

@COdogman .. costs please?

 

[COdogman]

I have always gone for the new car replacement option as well. It's one of those things that's easy to talk yourself out of, but I feel it's worth it.

I would have to check for an exact number for this year, but last year I know it was similar to what crashmtb said, around $250-$300. My insurer just calls it "car replacement assistance" and they basically add 20% to the cash price of your vehicle.

 

[NY_Rob]

^ thank you!

With the huge diff between pre and post pricing.. seems like something worth looking in to.

Last Wed morning our neighbor six houses down the road had their late model Ford $60K+ pickup stolen right from their driveway. That's what got me thinking about "replacement value" for the Rivian.

 

[Wefty]

Sorry for my ignorance but how hard is it to use a stolen vehicle like a Rivian? With so much tech involved is a stolen one even drivable for long?

I'm not downplaying the insurance issues because some of these heavy and fast trucks are definitely going to get wrecked. I don't have mine yet and I never thought about the replacement wait.

 

[NY_Rob]

 

[DuckTruck]

This might be a good question for @DuckTruck. My understanding is the insurance settlement should be based off what the trucks value was at the time of the incident.

An example that comes to mind is if you bought a used car 18 months ago, it is probably worth more money today than when you bought it. If it was totaled what you paid for it back then should not impact the settlement amount.

Actually, I wondered the same thing when I checked out my Nationwide policy earlier today (needed to sign electronically) and saw that option. I have a call in to get the explanation coverage, along with the pricing.

In my experience, this coverage is generally limited to the first year, or maybe two, from date of purchase. As I'm waiting to hear back, my review of the subject led me to WalletHub.com. They state "Yes, Nationwide offers new car replacement insurance, which pays to replace a totaled car with a brand new vehicle of a similar make and model. Specifically, Nationwide's new car replacement insurance is available if your car is less than three years old. Nationwide does not disclose exact costs for its new car replacement insurance, but this type of coverage typically costs about 5% of a policyholder's premium. Without new car replacement insurance, Nationwide will only reimburse you for your car's actual cash value (ACV), which is affected by factors like depreciation and physical damage."

Certainly, outside interpretations of Nationwide's policies are no substitute for Nationwide's own definition of the coverage. I'll post here what I find out. I. The mean time, I'm going to sign in and see if I can add the coverage myself ahead of the effective date.

More to follow....

 

[crashmtb]

Actually, I wondered the same thing when I checked out my Nationwide policy earlier today (needed to sign electronically) and saw that option. I have a call in to get the explanation coverage, along with the pricing.

In my experience, this coverage is generally limited to the first year, or maybe two, from date of purchase. As I'm waiting to hear back, my review of the subject led me to WalletHub.com. They state "Yes, Nationwide offers new car replacement insurance, which pays to replace a totaled car with a brand new vehicle of a similar make and model. Specifically, Nationwide's new car replacement insurance is available if your car is less than three years old. Nationwide does not disclose exact costs for its new car replacement insurance, but this type of coverage typically costs about 5% of a policyholder's premium. Without new car replacement insurance, Nationwide will only reimburse you for your car's actual cash value (ACV), which is affected by factors like depreciation and physical damage."

Certainly, outside interpretations of Nationwide's policies are no substitute for Nationwide's own definition of the coverage. I'll post here what I find out. I. The mean time, I'm going to sign in and see if I can add the coverage myself ahead of the effective date.

More to follow....

Funny story,,,Here it’s two or 3 years. I leased my car and bought it out at the end(0% with 0 down, low residual worked out to a couple thousand less than buying outright, how could I say no)…I had leased vehicle protection. When I did the buyout changed the insurance/reg over…they gave me new vehicle protection. For 3 more years. ?

I have another year left. I don’t intend to find out if they’ll come through or not.

 

[DuckTruck]

Funny story,,,Here it’s two or 3 years. I leased my car and bought it out at the end(0% with 0 down, low residual worked out to a couple thousand less than buying outright, how could I say no)…I had leased vehicle protection. When I did the buyout changed the insurance/reg over…they gave me new vehicle protection. For 3 more years. ?

I have another year left. I don’t intend to find out if they’ll come through or not.

It's certainly one of those coverages you hope never becomes needed, for sure! So, as an update, while I don't know the pricing, the New Vehicle Replacement Coverage has to be added within 30 days of the initiation of the policy. Given the increase that future R1's will retail for, this coverage is more desirable than ever. I've only ever had it on one other vehicle.

With Nationwide, I was told that coverage addition can remain in force indefinitely. I was also told that, in the event of a loss, replacing it becomes a priority, but you won't necessarily jump to the head of the line. I did ask about Launch Green availability in the future because, well, I'm me, and I want to know. Of course Nationwide doesn't make the vehicles, but I hope Rivian would be able to do that, if the R1 lineup is still being manufactured. If the R1's are out of production, I'm assuming the replacement becomes a question of the most similar vehicle in production at that time. I certainly wish they'd be able to issue another Launch Edition, but I wouldn't count on that given that the interior LE-branded pieces may not be available for long. I'll be visiting more with my Rep soon and will find out more as to the issue of comparable vehicles.

 

[E.S.]

@DuckTruck what is your insurance cost with Nationwide regarding your Rivian? As someone who highly value's my own privacy, I will understand if you do not wish to disclose this information, but I will thank you greatly if you do ?

 

[timesinks]

We have Safeco's ultra rider which bundles a bunch of bells & whistles (accident forgiveness, diminishing deductible, roadside, etc.) including new vehicle replacement, which is $104 of our $969 annually for the R1T.

New Vehicle Replacement: "Pays the full purchase price of your brand new vehicle for the first two years of ownership in the event of a total loss" which is supported by the full text:

Additionally, in the event of a total loss to your new vehicle we will pay at your option:
1. The new vehicle purchase price paid for our damaged vehicle, not including any insurance or
warranties purchased;
2. The purchase price, as negotiated by us, of a new vehicle of the same or similar make, model and equipment, not including any furnishings, parts or equipment not installed by the original vehicle manufacturer or manufacturers dealership; or
3. The market value of your damaged vehicle, not including any furnishings, parts or equipment not
installed by the original vehicle manufacturer or manufacturer's dealership. This coverage is provided without deduction for depreciation.
Coverage for a new vehicle will be applicable for no more than two years from the date of purchase of the vehicle to which it applies, plus the remainder of the policy term in which the last day of the second year from the purchase date ends.

Since "your" option means my option, we might have to nitpick about whether I want a payout based on the current market or to just get back in line at full retail, but I'd say it's pretty solid coverage that includes the effects of the price hike.

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