Drivers urged to check new car replacement cover

The Car Scrappage Scheme is set to finish at the end of this month and with the release of the new “10” registrations, there could be a rush of new car sales in the final week of March.

However Defaqto warns that the excitement of buying a new car and choosing the “cool” options like metallic paint, satellite navigation or alloy wheels can eclipse important financial decisions such as the cover provided under comprehensive car insurance .

Mike Powell, Insight Analyst at Defaqto said: “If you’re buying a brand new car then we’d say “new car replacement’ is an essential feature to look out for when buying your insurance . This benefit means that if your new car is damaged and the cost of repair is above a certain percentage (typically 60 per cent) of its UK list price, or it is stolen and not recovered, then your insurance provider will replace it with a brand new car “.

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