What is replacement cost coverage on my car and why would I need it?

If you have replacement cost protection on your car and your car is totalled, then the insurance company will replace your car with a new one of the same make and model, even though that may be many times the value of your car in the state it was in just before the collision.  If you always buy new cars, then this coverage could be extremely important for you.  Generally you must add the protection within 60 days of the new purchase of your new car and it will cost about 15% more on your comprehensive and collision premiums.  This protection does not apply to theft of your vehicle.