New car owners appreciate depreciation proof cover

As cars lose up to 40% value in first 12 months, the right insurance cover can protect new car owners from depreciation black hole, says American Express Insurance Services.

Over 400,000 drivers will splash out on new cars as the new 56 registration is introduced this month. Those unlucky enough to experience severe car damage or loss before its first birthday could pay dearly without the right insurance warns American Express Insurance Services.

Every new car suffers from heavy depreciation as soon as it drives off the showroom forecourt. An average family car will drop in value by 40% in just 12 months or after the first 10,000 miles – effectively the car loses £500 in value every month in its first year alone. Even high value cars can lose 10% of their value in the first year.

If your card is stolen or damaged beyond repair, American Express Motor Insurance policies provides registered owners with a new car of the same make, model unlike most insurers. As one in twenty of all car thefts are for vehicles less than 12 months old, American Express motor policies also offer new vehicle replacement protection if a new car is stolen before its first birthday.

American Express has a panel of over 20 insurers hand picked to offer motorists great value insurance for all domestic, imported and even classic cars. On average customers save £115 with an American Express motor insurance policy.

In addition to the new vehicle replacement protection, American Express comprehensive motor insurance customers receive:

Up to 70% No Claims Discount
Free European cover for 90 days.
A free courtesy car when using an approved repairer.

Joanne Field, Marketing Manager, American Express Insurance Services: “A new car – whatever the make or model – is a significant investment for any driver. With our inclusive cover, new car owners need not worry about the ever increasing depreciation once off the forecourt that a new car creates. Our policy will protect them within the first twelve months should the worst happen and they need to make a significant claim for their car.”