That's fine if you want to claim on your insurance.I've just talked to my insurance, direct line. They say, in the first 12 months, they do new replacement, then after that it's like for like. I'll get gap after that I think
If a third party hits you and writes off the car, then I guess that new for old doesn't work unless you claim on your policy instead of the insurance of the person that hit you.
In my case, my car was hit from behind whilst stationary and written off at 9 months old. The insurance of the van that hit me paid out the market value and the ALA gap policy made up the difference to the replacement new vehicle cost.