If your policy has a "like for like replacement car" provision (where, in the event of a write-off, they will find you a similar or often slightly newer car as a replacement), do you get a choice in the matter ? Can you always opt for a cash settlement ?
Only reference I have is after our house break-in where I wasn't offered any cash Settlement for goods that cold be replaced (Cameras, Laptops, xBox etc.) but appreciate this would be a different situation (this was new for old etc)
Cheers
Insurance Question
Re: Insurance Question
I've never seen that on a car insurance policy. What if you owned this?
It makes sense where you have a new for old policy, as with home contents insurance - your 20yr old cathode ray telly cannot be replaced directly so you'll get a similar sized modern telly with equivalent functions. But in a car policy, there's too little chance of finding something equivalent so being paid out market value is the only thing I've ever seen. Are you referring to the courtesy car part, where you'd get an executive saloon if you crashed your 5-series or whatever?
It makes sense where you have a new for old policy, as with home contents insurance - your 20yr old cathode ray telly cannot be replaced directly so you'll get a similar sized modern telly with equivalent functions. But in a car policy, there's too little chance of finding something equivalent so being paid out market value is the only thing I've ever seen. Are you referring to the courtesy car part, where you'd get an executive saloon if you crashed your 5-series or whatever?
Re: Insurance Question
Hi Jobbo,
Aviva's policy is New for Old in Year 1 but I can't see from their policy document whether you have a choice
Direct Line's seems to be offering "similar" but not new for old. ...
If your car is less than one year old and you are the first and only registered owner, we will replace it with one of the same make and
model if it has:
• been stolen and not found; or
• suffered damage covered by the policy
and the cost of repairing is more than
60% of the last United Kingdom list price,
(including taxes).
We can only do this if a replacement car is available in the UK and anyone else who has an interest in your car agrees.
If a suitable replacement car is not available, or your car was not supplied as new in the UK, we will pay you the market value of your
car at the time of the loss (less any excess that may apply). If we settle a claim under this clause, the lost or damaged car becomes
our property and you must send us the registration document.
but again, whether this is optional or mandatory isn't really referenced.
Rather than trawl through the major suppliers and read every booklet, I was hoping there would be some industry standards (or experience from a board member who was offered a car, refused and was given cash etc.)
Aviva's policy is New for Old in Year 1 but I can't see from their policy document whether you have a choice
Direct Line's seems to be offering "similar" but not new for old. ...
If your car is less than one year old and you are the first and only registered owner, we will replace it with one of the same make and
model if it has:
• been stolen and not found; or
• suffered damage covered by the policy
and the cost of repairing is more than
60% of the last United Kingdom list price,
(including taxes).
We can only do this if a replacement car is available in the UK and anyone else who has an interest in your car agrees.
If a suitable replacement car is not available, or your car was not supplied as new in the UK, we will pay you the market value of your
car at the time of the loss (less any excess that may apply). If we settle a claim under this clause, the lost or damaged car becomes
our property and you must send us the registration document.
but again, whether this is optional or mandatory isn't really referenced.
Rather than trawl through the major suppliers and read every booklet, I was hoping there would be some industry standards (or experience from a board member who was offered a car, refused and was given cash etc.)
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NotoriousREV
- Posts: 6436
- Joined: Wed Apr 11, 2018 4:14 pm
Re: Insurance Question
Wasn't it Direct Line that was offering a service where they just source you a replacement car if yours is written off? Handy for people who aren't in the slightest bit interested in cars and just want another blue Hyundai i20 with 20,000 miles on the clock.
Middle-aged Dirtbag
Re: Insurance Question
Dinny, the policy is what matters - it forms the whole contract with the insurer. So if the industry as a whole differs it's irrelevant; it's what your insurer contracts to do with you that matters.
On the basis of what it says above, they have an obligation to supply you with a new equivalent car. If there is no new equivalent, only then do they pay you market value. There is no option for you to choose. They may be willing to negotiate if this happens to you, but they're not obliged to.
On the basis of what it says above, they have an obligation to supply you with a new equivalent car. If there is no new equivalent, only then do they pay you market value. There is no option for you to choose. They may be willing to negotiate if this happens to you, but they're not obliged to.
Re: Insurance Question
Stats from Go Compare...
On 26 May, 2015, Gocompare.com checked 225 comprehensive car insurance policies on the matrix of independent financial researcher Defaqto and found that 92% included new car replacement cover.
Of the comprehensive policies on Defaqto that included new car replacement cover, the new car period was 12 months for 89% of them, while the rest had new car periods of 13-24 months.
But can't confirm it's the customers choice to accept it or not - gut feel is that the Customer would be given the choice but would like some confirmation.
On 26 May, 2015, Gocompare.com checked 225 comprehensive car insurance policies on the matrix of independent financial researcher Defaqto and found that 92% included new car replacement cover.
Of the comprehensive policies on Defaqto that included new car replacement cover, the new car period was 12 months for 89% of them, while the rest had new car periods of 13-24 months.
But can't confirm it's the customers choice to accept it or not - gut feel is that the Customer would be given the choice but would like some confirmation.
Re: Insurance Question
By the way, this isn't related to me or my policy - I haven't had a crash thank God 
It's a work question for a program I'm working on.
It's a work question for a program I'm working on.
Re: Insurance Question
You can't confirm anything without looking at 225 sets of policy wordingdinny_g wrote: Thu Jan 31, 2019 11:18 am Stats from Go Compare...
On 26 May, 2015, Gocompare.com checked 225 comprehensive car insurance policies on the matrix of independent financial researcher Defaqto and found that 92% included new car replacement cover.
Of the comprehensive policies on Defaqto that included new car replacement cover, the new car period was 12 months for 89% of them, while the rest had new car periods of 13-24 months.
But can't confirm it's the customers choice to accept it or not - gut feel is that the Customer would be given the choice but would like some confirmation.
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NotoriousREV
- Posts: 6436
- Joined: Wed Apr 11, 2018 4:14 pm
Re: Insurance Question
Or you could just phone the insurance company in question and ask them.
Middle-aged Dirtbag