Car Care Plan's new motor policy, GAP, is set to be the UK's first vehicle replacement insurance which allows for the increased price of new cars.
The new GAP (Guaranteed Asset Protection) product from the Yorkshire-based company has three cover levels.
Lynn Bradley, Head of Car Care Plan Products and Marketing said: "Broker prices start at just £45, while the top level, which covers increased list prices, is just £110.
"These are extremely competitive prices, which provide a genuine opportunity to boost profits at a time when margins are being squeezed everywhere."
For the top level of cover, pays-outs are based on the latest vehicle list price.
The second level pay-out is based on the invoice price of the vehicle, up to £35,000.
