Non fault accident in my new car

rs65

http://www.financial-ombudsman.org.uk/publications/technical_notes/motor-valuation.html

It mentions second hand cars unfortunately

iambarryscott

Thanks, it seems the Ombudsman supports what Aretnap said above:

'New for old seldom applies

We would usually decide that it is fair for an insurer to pay the original new price of the vehicle that was written-off if it is the only way that a policyholder can buy the nearest equivalent new replacement.'

So unless the TP insurer can find me a 3 week old car with virtually zero mileage I should be ok.

Fingers crossed.

TSx

As long as you are claiming from your own insurer, you should be fine - they will have to comply with the ombudsman guidance.

If you are claiming from the third party directly, then they will be entitled to make a deduction as it will have lost value as soon as it was driven from the garage. They are not required to put you back in the same material position (a new car), rather they are required to put you back in the same financial position (money to the value of a 3 week old car).

You may also find you lose NCB even though it is none-fault as the TP insurer may argue they are not legally required to pay the invoice value, and your insurer may not make a full recovery. I haven't ever worked in motor claims directly, so I can't be certain on that point.

kingstreet

Would the OP be better off settling via his own insurer, with the insurer pursuing the TP insurer to recover its costs?

I know the OP will then have to recover his excess from the TP insurer, but if that's the route to getting a new car...?

iambarryscott

TSx - why would I claim direct from tp insurer?!

TSx

iambarryscott wrote: »

TSx - why would I claim direct from tp insurer?!

Where liability is not disputed, there are some advantages to going through the third party insurer directly (most are happy to deal with 'innocent third parties') - primarily that you will not need to pay your excess up front, and also that you will keep your NCB whilst the claim is outstanding.

vaio

another advantage is that now some large insurers end the policy on a total loss pay out, you don't risk losing the remaining 49 weeks of your policy

the only real downside of dealing direct is you lose the protection of the FOS

beduth

iambarryscott wrote: »

beduth - thanks, that's very reassuring! Was it also a non fault accident?

rs65 - could you direct me to this ruling?

Yes non fault, was hit head on( other driver, a German lady was driving on wrong side of road:() my insurance sorted it (quote me happy) presume they then chased her ins axa for settlement. There is something about replacement vehicle if your car is nearly new. You cannot have cash settlement so I was told. Hope this helps

beduth

beduth wrote: »

Yes non fault, was hit head on( other driver, a German lady was driving on wrong side of road:() my insurance sorted it (quote me happy) presume they then chased her ins axa for settlement. There is something about replacement vehicle if your car is nearly new. You cannot have cash settlement so I was told. Hope this helps

Oh and my insurance transferred to my new car with no premium due till renewal