By Brian Montalto
In the event that you get into a motor vehicle accident while you are driving a brand new car, the accident may be so severe that the new car is deemed a total loss.
Collision coverage protects your vehicle for repairs needed up to 75% of the actual cash value of your car (ACV).
The insurance company may evaluate the ACV to be based on like kind and quality of similar vehicles on the road. Obviously, a brand new car immediately loses value the second it is driven from the sales lot.
The ACV would be much less than what you purchased the vehicle for.
If your brand new car is found to be a total loss, there is one exception to getting back what you are entitled to for the value of the car.
That exception is what’s called the 90 day rule.
Per NYS regulation 64, if a vehicle is deemed a total loss within 90days of the purchase of the vehicle, and the manufacturer has not released the next model year, then the owner is entitled to recover the purchase price of the vehicle based on the bill of sale, less any mileage reductions.
