New Car insurance

50Twuncle

My wife is collecting her new car next week - having driven as a named driver on my policy for the last 10 years
I have been trying to obtain a competitive quote for her - she has no ncd in her own name - and have found 2 decent quotes (Admiral @ £199 and Diamond @£202) - however, both state "NEW CAR REPLACEMENT NOT AVAILABLE"...

Does this mean that if my wife rights off the car or it is stolen in the first 12 months, that a brand new replacement will NOT be provided ?
Because, historically - this used to be the case .....

Most of the others that I tried, directly tell me
"Sorry - we can't quote you.
Thanks for answering all the questions!"

I don't understand why they don't want our custom ...

dacouch

Yes Admiral and their sister company are fairly unusual in that if you write your car off in the first year of ownership from brand new that they will not replace it with a brand new equivalent car.

So if you go with Admiral or Diamond and write the car off in the first year of ownership you receive the second hand price (Taking into account depreciation) immediately prior to the accident.

With most other Insurers you would get a brand new car.

Have you tried a local broker (Not Swintons) as most will be able to mirror the amount of no claims bonus you have onto a policy she has

Iceweasel

dacouch - any reason for saying 'not Swintons'?

dacouch

Iceweasel wrote: »

dacouch - any reason for saying 'not Swintons'?

Their staff tend to be new entrants to Insurance so have limited knowledge, that combined with their staff being under very high pressure to sell and sell additional (Un neeeded) products.

They also tend to sell on price alone so you end up with a moody policy from Covea

Strider590

TBH, I don't see why an insurer should replace with a new car, I don't like insurance companies, but why should they pay the VAT that you've already thrown away?

That's £3000 VAT on a £15000 car.

neilmcl

OP, as it's a new car it might be an idea to look around for cheap GAP insurance deals.

dacouch

Strider590 wrote: »

TBH, I don't see why an insurer should replace with a new car, I don't like insurance companies, but why should they pay the VAT that you've already thrown away?

That's £3000 VAT on a £15000 car.

It's been a standard feature on motor policies for decades, Admiral being the exception to the rule in not including it.

It's not just the VAT, on your £15k car taking into account depreciation you may receive say £11k if it's written off by Admiral in the first year. With the rest of the market you would receive the £15k to replace the car with a brand new one.

That's a big difference in claims settlement and certainly worth taking into account if you're buying a new car and considering Insuring with an Admiral group company.

Prothet_of_Doom

Strider590 wrote: »

TBH, I don't see why an insurer should replace with a new car, I don't like insurance companies, but why should they pay the VAT that you've already thrown away?

That's £3000 VAT on a £15000 car.

Because statistically, the extra premiums, and/or extra business, covers the additional cost to them, plus it makes estimating the value of a 2 month old car alot easier.

Having said that, a mate of a mate of a mate, had a limited edition Ford Puma Racing (500 built?), from new and it was written off within a week, with 60 miles on the clock, and the insurance company struggled to find a replacement, with Ford refusing to take an order for another, so he ended up getting his money all back, then buying the wreck, and having it repaired professionally. He ended up pretty much even by the time he'd finished.

forgotmyname

But the insurer probably wont pay the full retail price anyway. They will probably pay the equivalent of the 2nd hand price.

I remember reading something a long time back a Ford scheme where you got a nearly new car for a big saving. Some insider said that the used price exceeded what the lease company bought the car for anyway.

So probably lost little on the cars. And Ford selling used cars for more than it cost to make also.
Win/Win for Ford and the lease company.

dacouch

forgotmyname wrote: »

But the insurer probably wont pay the full retail price anyway. They will probably pay the equivalent of the 2nd hand price.

I remember reading something a long time back a Ford scheme where you got a nearly new car for a big saving. Some insider said that the used price exceeded what the lease company bought the car for anyway.

So probably lost little on the cars. And Ford selling used cars for more than it cost to make also.
Win/Win for Ford and the lease company.

They tend to receive a discount of circa 10% from the new price, the customer receives a brand new car as a replacement for their car which could have been 11 months and 29 days old which seems like a good deal to me.

What does a typical car lose in in value after 6 months, I would guess circa 20%

If they were with NFU they get a new car within 2 years of ownership from new.

Gloomendoom

neilmcl wrote: »

OP, as it's a new car it might be an idea to look around for cheap GAP insurance deals.

That was my thought. You can get gap cover that will make up the difference between what the insurer will pay out and the actual cost of a replacement car.