How does new for old car replacement work?


Found a new car that’s perfect for you? Great! But if it is stolen, or written off after an accident, you’ll probably want a brand-new replacement for it. So how can you be sure that’ll happen?

What is new for old replacement and when is coverage available?

If your car’s less than 2 years old and your vehicle has been stolen or damaged in an incident covered by your policy – and your claim is accepted as a total loss (write-off) – you will receive a brand-new vehicle of the same make, model and series as the one you owned if the following conditions are met:

  • You are the first registered owner of your car or you purchased your car as an ‘ex demonstration’ model from a licensed motor dealer who was the first registered owner of the car.
  • The loss or damage to your car occurred less than 2 years from the date of original registration of your car.
  • Anyone who financed your car provides us with written consent to us replacing your car.

AAMI’s Comprehensive Car Insurance includes new for old replacement cover – referred to in the policy documents as ‘New car after a total loss for cars less than 2 years old’ – at no extra cost. Check the PDS for the full terms and conditions.

Get a Comprehensive Car Insurance quote

How new for old replacement works

Once the claim has been lodged and accepted as a total loss, our specialists at AAMI attempt to find a new car of the same make and model as yours within 90 days. If the same model is not available, we’ll offer you a car that is a similar make and model – including any similar accessories, modifications, tools and spare parts.

We also pay for:

  • the initial registration
  • Compulsory Third Party (CTP) cover
  • delivery charges, and
  • stamp duty costs.

If a suitable replacement vehicle cannot be found, we’ll offer to pay out the value of your vehicle as shown on your certificate of insurance.

What is a write-off?

There are two types of car write-offs:

  • Statutory write-off.
  • Repairable write-off.

A statutory write-off means the car has been so badly damaged that it can never be repaired and made roadworthy again.

A repairable write-off is when a car could technically be repaired, but the repairs exceed the value of the car, and it becomes uneconomical to fix.

Can I insure a repairable write off?

If the car to be insured was previously deemed a ‘repairable write off’ and the car has since been repaired and is roadworthy, and has been re-registered, then AAMI may consider providing cover.

It’s important to note that in some states, such as QLD or NSW, Road Transport and Main Roads authorities may have limitations on whether a repairable write-off can be re-registered. Please check the eligibility criteria of your local state or territory.

AAMI will not offer an insurance policy for vehicles that cannot be registered.

The benefits of new for old replacement

Having the new for old replacement cover, in the form of AAMI’s ‘New car after a total loss for cars less than 2 years old’, as part of your Comprehensive Car Insurance means you won’t have to settle for a car replacement that you don’t love as much – and you won’t be affected by your car’s value depreciating.

Plus, if your car has been damaged by a third party, we’ll also give you a not-at-fault hire car while we settle your claim – as long as you can give us the name, address, and registration of the person at fault.

You can find out more about what’s automatically included under AAMI Car Insurance here.

Explore AAMI Car Insurance

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AAMI Insurance is issued by AAI Limited ABN 48 005 297 807 trading as AAMI. Please read the relevant Product Disclosure Statement before you make any decision regarding this product. The Target Market Determination is also available.

This advice has been prepared without taking into account your particular objectives, financial situation or needs, so you should consider whether it is appropriate for you before acting on it.

The information is intended to be of general nature only. Subject to any rights you may have under any law, we do not accept any legal responsibility for any loss or damage, including loss of business or profits or any other indirect loss, incurred as a result of reliance upon the information. Please make your own enquiries.