Hello everyone,
I need your advice on car insurance.
We received our car insurance renewal package in the mail yesterday and our monthly premium went up 16 % (we never had a car insurance claim in our lives).
I called the insurance company and they say that this is because they added the coverage called "5 year new vehicle protection" to our policy. With this particular coverage we are protected against the depreciation of the vehicle for up to 5 years from the date it was purchased. If your vehicle is deemed a total loss, we can have it replaced with a new one, provided we have purchased this coverage.
Advantages
In the event of a total loss, the vehicle will be replaced with a new one
In the event of a partial loss, the vehicle will be repaired with new parts
If this product expires during the policy term, coverage will be extended until the renewal date.
Do we need this thing? It adds $25 a month to our monthly premiums....
About the car
2016 Lincoln MKZ Hybrid
Purchased for $45,500 in December 2015 (new)
Fully paid off
My gut feeling tells me to remove this particular coverage but I wanted to check with the mustachian community first.
Thank you in advance for your comments.
IngaB
