Advise needed - Car insurance settlement figure.

DebbieJ_3

In December I bought a new car for which I paid £12,395. 3 weeks later the car was stolen. Even though I thought I was entitled to a courtesy car the insurance have told me it is only if the car is recovered damaged and is in a garage, so I have been paying £100 a week to hire a car.
They made me an offer last Friday of £10,500 which I declined. They have now increased this to £11,000. What I can't understand is that my car was insured for the market value and even though I have faxed over details of other vehicles with the same spec. which are selling for a minimum of £11,995 they are refusing to increase their offer. What should I do next.

MarkyMarkD

Do you mean "new"? Most insurers will replace new cars, on a new for old basis, if they are written off or stolen within their first year?

The issue re the hire car is standard practice, so you won't get your £100 a week.

Re the settlement value I think that you have a cast iron case - they should pay you enough money to replace with an equivalent vehicle. If necessary, complain to the Financial Ombudsman Service (or threaten to).

dunstonh

Most insurers will replace new cars as new in the first 12 months as MarkyMarkD says. However, this is one area that can be altered by some budget insurers to save a few pence.

It should say in the policy docs what the treatment of new cars is.

DebbieJ_3

Thanks for your replies, I will pursue this with the insurer tomorrow.

SCOTTEX

Personally, I'd take their offer and move on. What more do you want ?
You are dealing with an insurance company and playing with the devil.

Its allright saying that equivilent cars are on sale for £11 999 but they don't sell for this figure and this is the figure that is important. You take a brand new car back to a dealer after 3 weeks and see what they offer you.

Pagan98

In December I bought a new car for which I paid £12,395. 3 weeks later the car was stolen.

Car insurance companies make me so :mad:

Clearly given the very short time you owned the car there are 2 options:
(i) you massively overpaid when you bought the car, or
(ii) they are trying to rip you off.

I strongly suspect the latter.

If your policy doesn't provide new for old cover within the first year of owning a new car, ask them where locally they suggest you should purchase a like-for-like vehicle at such a reduction.

If they refuse I suggest you take this case to the Financial Ombudsman Service.

brazilianwax

Not all companies offer new for old cover, and the OP hasn't said it was a brand new car.

Was it?

mattymoo

If they are not offering new for old cover then the settlement is market value. This is not the same as forecourt value. Roughly there are 3 values.

Trade in value - what a dealer would give you.
Market value - what you would pay in a private sale.
Forecourt value - what a dealer would charge.

If market value is the settlement basis start looking at the ads in Autotrader etc.

DebbieJ_3

We agreed on a higher settlement figure and I have now found a car for the same price. Thanks for your suggestions.:rotfl: