In the event that your new car was demolished in an accident caused by someone else, and you had only owned the car for three months, you may not necessarily be reimbursed the full amount you paid for it. When you file a claim with your insurance company, they will typically pay the lower of two options: the cost to repair the loss or damage, or the 'actual cash value' of your vehicle at the time it was damaged. Your insurance company will not pay more to repair your vehicle than its actual cash value. This means that the reimbursement you receive will be based on the depreciated value of the car at the time of the accident, not the full amount you paid for it three months ago. Additionally, if you have auto liability coverage, it may protect you against financial loss due to legal liability for motor vehicle-related injuries or damage to the property of others caused by accidents arising out of ownership, maintenance, or use of a motor vehicle. It's important to notify your insurance company immediately after the accident and provide detailed information regarding the loss. Your insurance company may also contact you for a written or recorded statement as part of the investigation.