USAA Car Replacement Assistance is optional auto insurance coverage that can provide additional money if your vehicle is declared a total loss after a covered claim. The extra payment is generally 20% of your vehicle’s actual cash value, on top of the standard total-loss settlement. It can help you afford another vehicle, but it does not automatically replace your car with a new one.
For more on finding your next vehicle, see our guide to the USAA car buying service without membership.
When a covered vehicle is totaled, the insurer determines its actual cash value immediately before the loss. That value reflects factors such as the vehicle’s age, mileage, condition, and local market. Your policy’s deductible and other applicable terms can affect the final payment.
For example, if the actual cash value is $15,000, a 20% Car Replacement Assistance payment would be $3,000. The resulting amount before any applicable deductible or other adjustments would be $18,000. Your actual settlement depends on your policy and the details of the claim.
You can generally use the settlement toward another vehicle, whether you choose a comparable used car or put the money toward a different model. Availability, eligibility, and coverage terms can vary, so review your USAA policy or quote for the details that apply to you.
No. Gap insurance is designed to address the difference between a vehicle’s value and the amount you owe on a loan or lease, subject to its terms. Car Replacement Assistance adds a percentage of the vehicle’s actual cash value to an eligible total-loss payment. That extra amount may help with a remaining loan balance, but it may not cover the entire balance.
We suggest considering how you would replace your vehicle if it were totaled. The extra payment may be valuable if you would have difficulty covering the difference between a standard settlement and the cost of another car. Compare the coverage cost with your savings, your vehicle’s value, and any loan balance before deciding.
No. A total-loss payment is generally based on the vehicle’s actual cash value before the loss, not the price of a new car. Even with an additional coverage payment, you may need to contribute money toward your replacement.
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