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mcbrucer

Renewal Time, New For Old Question

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Hello all,

Our van will shortly be 3 years old. The renewal just came through from the CC and I notice that the policy quotes at the same value that was originally stated when we bought it new. I understand we have the 'new for old' level of cover.

My question is, will they really cover new for old? i. e. Actually buy us a brand new van at the same size and spec in the event of a total loss?

I'm pretty sure that with car & home cover, insurers will go to any length to reduce their exposure to big payouts and I'm wondering if it's simply naive to assume that 'new for old' is what it purports to be.

Secondary thought is, of course, would I be better off insuring against the vans current value - though I've no idea what that value is or how to calculate it!?!

 

Any/all advice appreciated!

Cheers

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you will only receive a new for old pay out if the van is a total write off or stolen & that is providing you have reinsured for the cost of a NEW caravan .

 

insurers will normally carry out a repair even if the cost is more than the market value of the van, providing the cost is below replacing the van with new

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what price have they quoted you

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1) Yes, they will, up to a predetermined time- I think five years?

 

New for old means precisely what it says on the box. However, it does not mean that one can get a better van for the money!

 

2) It's a contract. Of course insurers are going to bargain, unless there is proper evidence of value. How often does one see that jewellery, particularly, is bought for X and is "valued" at 2X? If not, either the premiums would become stratospheric or insurers would go bust.

 

3) Valuing a s/h caravan is relatively simple- find out what the dealers sell it for and go with that.

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I don't have it in front of me but I think it's around £340. Not too dissimilar to last year from what I remember. The van is insured for the new cost plus the cost of the mover - which was expensive as it's a 4 wheel one. I think it's 22k all in.

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I informed the insurer of the equivalent new cost at each renewal and they charged accordingly, I insured it new for old for ten years.

The insurance premium went down with thump when new for old was over.

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my price was £220 new for old

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When you insure on a new for old basis you are supposed to have a "sum insured" sufficient to buy a replacement caravan of identical spec. If the van you are insuring is no longer produced, then you should agree with your insurer when renewing the policy what replacement model you have nominated. If the replacement van is still produced it may be more expensive and the increased price should be used for the sum insured.

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For your own piece of mind, ask the Insurer what value you should now be covering it for on a new for old basis.

I have a friend who sufferred a write off of his van after an accident in France.

He thought he was on new for old but the value had never been increased at the start of each new insurance period to reflect the cost of replacement with a brand new van.

They paid him out on market value, he went to the Insurance Ombudsman and lost the case!

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I added £1,000 new for old to include the motor mover as part of the caravan and that is documented on my insurance.

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My n4o policy is due for renewal but I cant ascertain the 2017 model price to revalorise the insured amount, not yet been announced. Not sure what todo

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Been battling with insurance companies today! Gave the the replacement cost of our 2 year 5 month old caravan, as I wanted it covered on a new for old basis!

Cover was best from the CC at £ 232. With a £200 excess

Quite happy with that

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My n4o policy is due for renewal but I cant ascertain the 2017 model price to revalorise the insured amount, not yet been announced. Not sure what todo

Ask the Insurance Company what value you need to insure for. They will only be able to use latest figure available and if thats a 2016 price thats up to them. They can't argue if they have told you what value to cover at.

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If an insurance company sets up the policy "new for old" surely they should take into account the annual increase of the value of the replacement? Does this mean that every September all of ours have to update our policies to reflect the replacement costs as September is when the new price comes into effect. How many people on this forum with "new for old" policies have doen thsi to reflect the increase? Our renewal is due in November so do we amedn the price now?

It must also be remembered that an insurance company will get the replacement at a substantially reduced price as they will probably buy direct from the manufacturer so in effect on a "new for old" policy we are probably "over insuring". I am wondering if the insurance company pay VAT on the replacement caravan?

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If an insurance company sets up the policy "new for old" surely they should take into account the annual increase of the value of the replacement? Does this mean that every September all of ours have to update our policies to reflect the replacement costs as September is when the new price comes into effect. How many people on this forum with "new for old" policies have doen thsi to reflect the increase? Our renewal is due in November so do we amedn the price now?

It must also be remembered that an insurance company will get the replacement at a substantially reduced price as they will probably buy direct from the manufacturer so in effect on a "new for old" policy we are probably "over insuring". I am wondering if the insurance company pay VAT on the replacement caravan?

Remember that Insurance Companies are renowned for trying to wriggle out of paying up.

I have tried arguing with several companies that I should be able to insure based on the discount price that I could buy a new van if I were going with cash and no trade-in.

I am always told that they (the Insurer) use Glasses guide to determine value, so I simply ask them to tell me what value I need to insure at to quarantee replacement with a new van if written-off. The price they give me is usually between the retail new price and discounted cash price, and I settle for that.

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With new for old, I found that the insurer just looks up the value of the new caravan and charges you accordingly. We had a problem with our last 'van when it was 3 yr old as the makers stopped making that model so the insurers couldn't get a price. They offered me a regular policy unless I could get a proper price on the 'van, they said that if I was wrong on the figure that I gave them in the event of a claim my insurance wouldn't pay out. I phoned the dealer and the maker and got 2 different values so opted for a regular policy. If I had taken the new for old I would have used the maker's price although the 'van was a dealer special.

Edited by joanie

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Would you insure your house for what you paid for it or at present day value :unsure:

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Would you insure your house for what you paid for it or at presehnt day value :unsure:

Neither - it's insured at rebuild cost! Additionally in recent/current times houses don't depreciate in the same way consumer goods like caravans do.

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What happens if for example you have new for old policy on a caravan i. e. 2014 Lunar Delta TI and it gets written off, but the new version of the Delta TI is not suitable as the roof will not support an air con and satellite dome like the old caravan?

Could you request an equivalent cash payout so that you can purchase a different brand and model where the roof can support an air con and satellite dome?

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