New Auto Security

Let’s say you get into an accident a week after buying your new ride. Cars do depreciate the minute they’re driven off the lot. According to, new vehicles lose value at an average decline of 15-25 percent each year during the first five years. That means if your new ride gets totaled, your insurance payout could be much less than what you paid for the car (or what you owe on your loan, for that matter).

How ERIE can help: New and Used Car Replacement called New Auto Security

Your new car may depreciate the minute you drive it off the lot, but that doesn’t mean your insurance coverage should, too.



Erie Insurance offers an auto endorsement that makes sure you have adequate coverage should something happen to your new ride. If your new car1 gets totaled, it will be replaced with the newest model year if you’ve had it for less than two years. (Another reason to feel good: If you’ve had your car longer than two years, you’ll get a model that’s two years newer.)

You can add New Auto Security2 to your ERIE auto policy for an additional cost. And here are the reasons why you’ll want to add it:

  • If you’ve had your car less than two years and it gets totaled, ERIE will reimburse you the cost to replace it with the newest comparable model year (minus your deductible).
  • If you’ve had your car longer than two years and it gets totaled, ERIE will pay the cost to replace it with a comparable model that’s two years newer (minus your deductible).
  • If you lease your car, coverage is provided for the difference between the actual cash value of the auto and the amount due under the terms of your lease or loan.3



You can add New Auto Security to your policy at any time prior to a loss. It’s not restricted to when you buy the car or first insure the car with ERIE.

If you already have ERIE auto insurance, you may add New Auto Security to your existing auto policy for just a few extra dollars a month. If you are new to ERIE, ask your us at Applegate Insurance Agency, your local Tennessee ERIE agent for an auto quote that includes New Auto Security.


1Vehicle is considered new when less than two years old. The endorsement is sold on a per-vehicle basis, not per policy, and contains the specific details of the coverages, terms, conditions and exclusions.

2Coverage is not available in all states. Eligible vehicles must carry both comprehensive and collision coverage and replacement must be made with a comparable model. See individual policies for specific coverage details. 

3New vehicle replacement and better vehicle replacement do not apply to leased vehicles. Only auto lease/loan component applies to a leased vehicle. Coverage does not include items such as overdue payments and carry-over balances from previous leases/loans, etc. When payment is made under new vehicle replacement or better vehicle replacement, auto lease/loan coverage will not apply.

Insurance products are subject to terms, conditions and exclusions not described here. Ask your ERIE agent for details. Refer to our disclaimer for additional information.