Does Mercury offer new car replacement insurance?

You can buy a new car after a total loss using your payout from the insurance company if the loss was covered. If you purchased new car replacement insurance, your insurer will provide enough money to buy a similar vehicle.

Without new car replacement, most insurance policies will only pay a totaled car’s actual cash value, which is usually not enough to purchase a similar car again. In some states, your insurer is required to pay for the sales...

An insurance company determines the value of a totaled car by considering factors such as the vehicle’s make and model, year, and mileage. A vehicle is considered totaled when the cost of repairs approaches or exceeds the car’s actual cash value (ACV), which is what the insurer says the car was worth prior to being damaged. If the insurer declares the vehicle a total loss, they will pay out any insurance claims based on the...

If your car is totaled and you still owe money on the loan, the insurance company will pay your lender for the car’s value, and you will be responsible for any remaining balance if the check is less than the loan amount. If you have gap insurance, it will cover the difference between the car’s value and the loan balance. Otherwise, you will need to continue making payments for as long as it takes to bring...