New for Old Insurance

Megalomaniac

Hi all,

Never had to claim on insurance for things stuff before, but I am going to have to. I am told by the insurance company that the cover is 'new for old'. My camcorder is beyond economical repair and the quote I have received for a replacement is 150% of what I paid for the camcorder in the first place. Does this mean the insurance company will:

a) replace the camcorder with the current, equivalent model?
or
b) pay out up to the value of the camcorder I paid and then I have to make up the rest?

I am guessing it is a) but would like some clarification.

Thanks

lisyloo

They will replace it.
They will either replace it directly or give you vouchers to the equivalent, probably at a high st store like currys.

This sometimes causes issues because technology moves on and a direct replacement won't be possible.
You might be lucky and get something better or you might not be happy with what they first suggest.

BTW - What happened to your camcorder?
If it just broke down and you are talking about household insurance you won't be covered.

Also make sure that with the excess and any increased premiums in future that it us worth claiming (you can find out increased premiums by using a comparison site and putting in 0 claims and then 1 claim).

Megalomaniac

Thanks Lisyloo. I'll be claiming on my company's travel insurance - was smashed in a car accident so won't put up my premium. £25 excess too so I think I am all set!