We’ve all heard the saying about the car losing 30% of its value right after driving off the lot. So what happens if you are in a total wreck within the first?

Imagine if you took out a loan for a car and now you still owe that loan while your auto insurance only pays the value of the car after depreciation? You’d be left with a portion of a car loan outstanding but without the car.

This is when Guaranteed Replacement Cost for your auto insurance is important. It guarantees to ensure the cost of the car you bought, not the market value during the accident.