Home insurance - Payout in vouchers ? ! ?

stevezx7r · 19 October 2006 at 9:31PM

Hi all, hope someone can help me with this.

A few months ago my mountain bike was stolen from my back yard. After getting the police ref and a new for old quote from Halfords my insurance is ready to pay out. The problem is this, they have sent a letter stating that I can either buy a new bike and bill them or request a voucher (cheque to Halfords) for the amount and do it that way. The problem is I can no longer ride a bike due to a knee injury.

What do you think? Can I request cash instead or am I going to have to buy a bike then sell it and loose out that way?

I could do with putting the money to some other good use (paying the bills for a start!) as I can no longer ride a bike.

Regards,

Steve.

gazza975526570 · 19 October 2006 at 9:32PM

You can certainly ask them. However they may then make a deduction for wear and tear/depreation that they wouldnt necessarily make if you had vouchers/new bike.

stevezx7r · 19 October 2006 at 10:51PM

Thanks for the reply.

It's seems strange to me the way that insurance differs. As an example, my brother was knocked of his bike (motorbike) the other week and the insurance paid up within days (fully comp). He received market value for his bike in cash, whereas I am expected to accept a voucher redeemable only at Halfords? I wonder why they don't do the same for motor insurance? "Here you are sir, please buy another of the same make/model..."

I suppose all I can do is get the bike and sell it second hand, or, maybe I can sell the voucher?

Cheers.

gazza975526570 · 19 October 2006 at 10:56PM

They will prefer you to use their dedicated supplier as it will be cheaper for them. IE you get a voucher for £500 but it wont be costing the ins company this. Somewhere between 3-10% discount on average. FOr some items, ie jewellery there is such a massive mark up by shops that insurance companies can get a 40% discount. At the end of the day it does make peoples insurance preiums down.

I doubt you can sell the voucher as it will (im presuming) be a mandate addressed to you rather than a gift voucher item

Give them a call though they may do something for you

going2die_rich · 20 October 2006 at 8:21AM

Giving vouchers also means a reduction in fraud insurance claims. Means you can't just pocket the cash so are less likely to make a flase claim since you are restricted to where you can buy or have to provide proof of purchase. I think it's a good idea for insurance firms to reduce fraud insurance claims.

stevezx7r · 20 October 2006 at 10:10AM

I understand, thanks guys. I'll give them a ring and see what they can do. I'll let you know the outcome.

Steve.

stevezx7r · 20 October 2006 at 3:10PM

Well, I rang them and they said they wouldn't normally pay out in cash but due to the circumstances if write a letter explaining the situation they will see what they can do.

I wrote a letter and it's been posted today so they should get it by monday, process it by wednesday and I hope to hear from them by the following monday.

I'll keep you informed.

Steve.

deanos · 20 October 2006 at 4:54PM

If they are gift vouchers you could use them for something else in Halfords or maybe sell them ?

Home insurance - Payout in vouchers ? ! ?

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