QBE Insurance Corporation introduced a new Vehicle Replacement Insurance program, effective January 1, 2026. The coverage supplements a customer’s standard auto policy by paying the difference between the total loss settlement from their insurer and the cost of a new replacement vehicle.

The program also includes an optional deductible reimbursement benefit of up to $1,000 for total or partial losses. Rates are based on the vehicle purchase price multiplied by a percentage factor that increases with policy term, from 1.682% for 24 months to 8.468% for 60 months.

The policy applies to new vehicles purchased from OEM dealerships, with benefits paid through vouchers redeemable toward replacement vehicles rather than in cash. The launch reflects a broader trend of insurers developing add-on coverage to bridge depreciation gaps and strengthen dealer and affinity partnerships.

Similar filings were submitted in other states.