Does insurance valuation / replacement include VAT

bluphoto7

Hi there,
It's likely my van will be a write off. My own claim, from direct line. I hit someone while on ice.

So, to valuation. Mine is a 2006 transit. I am no longer running a business and therefore can't reclaim VAT, but want to replace like-for-like.

That said, pretty much all transits (being commercial vehicles) are advertised at a price "plus VAT".

Can I assume that any valuation done of my van will include VAT, and if I ask my insurer to source & replace the vehicle rather than send me the cash, then can I assume that they will also take care of the VAT on the purchase of the replacement?

I plan to ask them to replace the van with another of same or less mileage - and as I use my van privately and not commercially, that equates to a low mileage. They may struggle to find one of the same age with simliar milage, but I assume that once they do, they will have to value my van at the same as that van - is that how it works?

What happens if the only vans "out there" with similar mileage are newer, and more expensive? I can put some cash towards it, but not much, particularly after repaying my £350 excess.

Don't get me wrong - I'm not talking aout "super low" mileage. I'm at 100,000 miles, but most 2006 vans are much higher.

I guess if it was a TV or building that was damaged, then any VAT on repairs or replacement would be met by the insurer, and I wouldn't have to worry about it. I assume it's the same with vehicles, but really not 100% sure.

InsideInsurance

Assuming you arent VAT registered/ arent noted as such with your policy then the settlement should be gross. If you are VAT registered then the payments should be net of VAT and you recover VAT from HMRC as normal.