If your car is totaled in an accident, most auto insurance policies pay only up to the actual cash value, which is replacement cost minus depreciation. This could leave you with a gap between what it will cost to buy your replacement car and how much your insurance company will give you.
Acuity created an optional Replacement Benefits Coverage endorsement that can be added to an Acuity insurance policy for a charge. As part of this endorsement, Acuity will pay Actual Cash Value Plus 25% if an accident results in a total loss to your vehicle.
Acuity offers this coverage when you insure a car, pickup, SUV, or motorcycle more than two model years old. If you select Replacement Benefits Coverage, the Actual Cash Value Plus 25% feature continues for as long as you retain physical damage coverage, otherwise known as comprehensive and collision coverage.
You buy a 5-year-old vehicle, insure it with Acuity, and include the Replacement Benefits Coverage endorsement. Four years later, you are involved in an accident, whereby the vehicle is determined to be a constructive total loss. Acuity will pay 25% more than the actual cash value of the vehicle prior to the loss.
Check with your agent to confirm whether you have Replacement Benefits Coverage. If not, contact an independent agent who represents Acuity Insurance.