Ameriprise auto insurance, currently operating under the brand CONNECT, powered by American Family Insurance, provides specialized protections for new vehicles, most notably New Car Replacement and Gap coverage. These features are designed to shield owners from the immediate "drive-off-the-lot" depreciation that typically devalues a new car by 10% to 20% within the first year. By opting for these enhancements, policyholders ensure that a total loss results in a brand-new equivalent vehicle or a cleared loan balance rather than a payout based solely on the car's depreciated market value.
Understanding the Brand: Ameriprise to CONNECT
To understand your options for a new car in 2026, it is essential to clarify the relationship between Ameriprise and its current identity. In 2019, American Family Insurance acquired Ameriprise Auto & Home Insurance. Following this acquisition, the entity was rebranded as CONNECT, powered by American Family Insurance.
While many long-term policyholders and Costco members still refer to the service as "Ameriprise auto insurance," all new policies and renewals are managed under the CONNECT banner. This transition did not diminish the specialized new car benefits; rather, it integrated them into the broader American Family Insurance infrastructure, providing more robust digital tools and claims support. For the purpose of this guide, "Ameriprise" and "CONNECT" refer to the same specialized insurance products tailored for new car owners.
The Core Benefit: New Car Replacement Coverage
The most significant concern for any new car owner is the risk of a total loss shortly after purchase. Standard auto insurance policies operate on an Actual Cash Value (ACV) basis. If your $50,000 SUV is totaled three months after purchase, and its market value has dropped to $42,000, a standard policy only pays the $42,000 (minus your deductible).
Ameriprise (CONNECT) addresses this through New Car Replacement Coverage. This is not a standard feature in basic liability or collision packages; it is an optional endorsement that must be added at the time of the car’s addition to the policy or shortly thereafter.
How New Car Replacement Works
If you are the first titled owner of a vehicle and it is totaled within a specific timeframe—typically the first 12 months of ownership or before it reaches 15,000 miles (whichever comes first)—Ameriprise will pay for a brand-new vehicle of the same make and model.
- Eligibility: The vehicle must be new (not previously titled) and must be added to the policy within a specific window, usually 30 days of purchase.
- The Payout: Instead of receiving a check for the "used" value of the car, the insurer provides the funds necessary to purchase a current-model-year replacement.
- Deductibles: You are still responsible for your chosen deductible (e.g., $500 or $1,000), which is subtracted from the final settlement.
This coverage is particularly valuable for owners who do not have a large down payment and would otherwise be "underwater" on their car loan immediately after leaving the dealership.
Gap Insurance: Loan and Lease Payoff
While New Car Replacement provides you with a new vehicle, Gap Insurance (referred to by CONNECT as Loan/Lease Payoff coverage) serves a different but complementary financial purpose. If you finance or lease your new car, there is often a discrepancy between what you owe the bank and what the car is worth.
In 2026, with the average price of new vehicles remaining high and financing terms often extending to 72 or 84 months, this "gap" can be thousands of dollars.
The Mechanics of Loan/Lease Payoff
If your vehicle is totaled or stolen and never recovered, Ameriprise’s Gap coverage will pay the difference between the ACV of the vehicle and the remaining balance on your loan or lease.
- Scenario A (Without Gap): You owe $45,000. The car is worth $38,000. The insurer pays $38,000. You still owe the bank $7,000 for a car you can no longer drive.
- Scenario B (With Gap): You owe $45,000. The car is worth $38,000. Ameriprise pays the $38,000 value plus the $7,000 "gap" directly to the lender (subject to policy limits, usually capped at 25% of the ACV).
It is important to note that Gap insurance through Ameriprise is often significantly more affordable than the GAP protection offered by dealerships at the point of sale. Adding it to your monthly premium typically costs a fraction of the lump-sum or financed fee charged by lenders.
The Costco Connection: Enhanced Benefits for Members
A primary reason consumers seek out Ameriprise (CONNECT) for new car insurance is the long-standing partnership with Costco Wholesale. If you are a Costco member, your new car policy often includes "Executive Member" perks that are not standard for the general public.
Exclusive Features for New Vehicles
For Costco Executive Members, Ameriprise frequently includes the following at no additional cost:
- Roadside Assistance: Essential for new cars, even if they have a manufacturer warranty, as this covers lockout services and fuel delivery which warranties might exclude.
- Glass Repair Reimbursement: New cars in 2026 are equipped with complex windshields housing sensors for Advanced Driver Assistance Systems (ADAS). Replacing these can cost upwards of $1,500. Ameriprise often provides lower deductibles or full reimbursement for glass repairs to keep these sensors functioning correctly.
- Lifetime Repair Guarantee: When you use a network-approved shop for repairs on your new car, the repairs are guaranteed for as long as you own or lease the vehicle.
Standard Coverage Requirements for New Cars
When you buy a new car, your insurance needs shift from "minimum legal requirements" to "asset protection." If you are financing the vehicle, your lender will mandate specific coverage levels that Ameriprise must verify.
Collision and Comprehensive
Lenders require both Collision and Comprehensive coverage.
- Collision: Covers damage to your new car resulting from an accident with another vehicle or object, regardless of fault.
- Comprehensive: Covers "acts of God," including theft, fire, vandalism, hail, or hitting an animal. For a new car, comprehensive is vital because of the high cost of components like LED headlights or panoramic sunroofs.
Liability Limits
While your state might only require $25,000 in bodily injury liability, insuring a new, expensive asset with such low limits is risky. Ameriprise advisors generally recommend higher limits (e.g., $100,000/$300,000) to protect your personal assets in the event of a major lawsuit, as the possession of a new car often signals to third parties that you have reachable assets.
Adding a New Car to an Existing Ameriprise Policy
The process of transitioning from an old vehicle to a new one requires precise timing to ensure no lapse in coverage.
- The Grace Period: Ameriprise typically offers a 7 to 30-day grace period (varying by state) where your new car is automatically covered with the same protections as your previous vehicle. However, if your previous car did not have Collision or Comprehensive, your new car will not have it either during this period.
- The VIN Requirement: To finalize the addition, you will need the 17-digit Vehicle Identification Number (VIN), the exact mileage, and the purchase date.
- Lender Notification: You must provide the name and address of your lienholder (the bank or leasing company). Ameriprise will then send a "Certificate of Insurance" to the lender to satisfy their requirements.
Cost Considerations and 2026 Technology Discounts
Insuring a new car is generally more expensive than insuring an older one because of the higher replacement cost. However, Ameriprise offers several discounts that specifically target the features of modern vehicles.
Safety Feature Discounts
Cars manufactured for the 2026 model year are standard-equipped with sophisticated safety tech. Ameriprise provides discounts for:
- Adaptive Cruise Control and Lane Departure Warning: Systems that reduce the likelihood of high-speed collisions.
- Automatic Emergency Braking (AEB): Now a standard industry requirement, this significantly lowers the frequency of rear-end accidents.
- Passive Restraint Systems: Discounts for advanced airbag arrays.
Telematics: The "Self-Correction" Discount
Ameriprise utilizes a telematics program (often an app or a plug-in device) that monitors driving habits. For a new car owner, this is an opportunity to prove safe driving behavior immediately. If you avoid hard braking and late-night driving, you can earn a significant discount (sometimes up to 30%) on your new car's premium.
Coverage Comparison: Standard vs. Enhanced
The following table illustrates the difference between standard policy coverage and the specialized options available through Ameriprise for a new vehicle.
| Coverage Type | Standard Policy (ACV) | Ameriprise New Car Replacement | Ameriprise Loan/Lease Payoff (Gap) |
|---|---|---|---|
| Total Loss Payout | Market value at time of loss | Cost of a brand-new same model | Remaining loan/lease balance |
| Depreciation Impact | You lose the "drive-off" value | Insurer absorbs depreciation | Insurer absorbs the "gap" |
| Financing Safety | High risk of remaining debt | Medium (payout replaces car) | High (debt is cleared) |
| Eligibility | Any vehicle | First 12 months / 15,000 miles | Vehicles with active financing |
| Cost | Baseline premium | Additional endorsement fee | Additional endorsement fee |
Common Mistakes When Insuring a New Car
Even with a reputable insurer like Ameriprise, policyholders can make errors that lead to financial exposure.
- Waiting Too Long to Update the Policy: While a grace period exists, relying on it is dangerous. If you traded in a 10-year-old car with "Liability Only" coverage and total your new car on the way home, you may have zero coverage for the physical damage to the new vehicle. Always call your agent before leaving the dealership.
- Underestimating Replacement Costs: In 2026, supply chain fluctuations can sometimes make the "replacement" of a car more expensive than its original MSRP. Ensure your policy language covers the actual cost of a new model, not just a fixed dollar amount.
- Ignoring Glass Coverage: With modern ADAS cameras mounted behind the rearview mirror, a simple rock chip can require a full windshield replacement and a "recalibration" of the safety systems. Failing to have specialized glass coverage can result in a high out-of-pocket cost.
Claims Process for New Vehicles
If your new car is involved in an accident, the Ameriprise claims process involves specific steps to preserve the vehicle's value.
- Initial Assessment: A claims adjuster will determine if the vehicle is repairable. For new cars, insurers are often more likely to total the vehicle if the frame is damaged, as the cost to return a brand-new car to "factory condition" is extremely high.
- OEM Parts Requirement: Ameriprise policies often allow for Original Equipment Manufacturer (OEM) parts for new vehicles. This is crucial because using "aftermarket" parts on a 2026 model can void certain manufacturer warranties or reduce the car’s resale value.
- Total Loss Settlement: If the car is totaled, the adjuster will trigger the New Car Replacement or Gap coverage protocols. You will be required to provide the final payoff statement from your lender to settle the Gap portion of the claim.
Frequently Asked Questions
Does Ameriprise New Car Replacement cover taxes and fees?
Generally, New Car Replacement coverage is designed to cover the cost of the vehicle itself. While it covers the purchase price of the new model, certain state taxes, title fees, and registration costs may or may not be included depending on the specific state endorsement. It is vital to check your individual policy declarations page for "Sales Tax" inclusions.
Can I add New Car Replacement to a "certified pre-owned" vehicle?
No. To qualify for New Car Replacement through Ameriprise (CONNECT), you must be the original owner of a vehicle that was never previously titled. Certified Pre-Owned (CPO) vehicles, while new to you, have been previously titled and therefore only qualify for standard Actual Cash Value or Loan/Lease Payoff coverage.
How does the 15,000-mile limit work?
The coverage typically expires once you hit the 15,000-mile mark or the 12-month anniversary of the purchase, whichever comes first. If you drive 16,000 miles in the first six months, the New Car Replacement benefit automatically converts to standard ACV coverage for the remainder of your policy term.
Is Gap insurance required if I have New Car Replacement?
They are not the same. New Car Replacement gives you a car; Gap insurance pays off a debt. If you have a high-interest loan or rolled "negative equity" from a previous trade-in into your new loan, you might need Gap insurance even if you have New Car Replacement, as the replacement cost of the car might still be less than your total loan balance.
Does Ameriprise cover electric vehicle (EV) home charging stations?
In 2026, many new cars are electric. While the auto policy covers the vehicle and the portable charging cable, a permanently installed home charging station is typically covered under your Homeowners Insurance policy, not the auto policy. However, if you bundle both through CONNECT, the claims process for a power surge or fire involving the charger is much smoother.
Practical Recommendation
When insuring a new car with Ameriprise (CONNECT) in 2026, the most prudent course of action is to bundle New Car Replacement with Loan/Lease Payoff coverage for at least the first year of ownership. This "belt and suspenders" approach ensures that you are protected against both the physical loss of the asset and the financial burden of the loan. Additionally, if you are a Costco member, ensure your membership number is linked to your policy to trigger the "Executive" benefits, specifically the glass repair and roadside assistance perks, which offer the most day-to-day value for a brand-new vehicle.
