Insurance company ordering a new car to replace stolen car?

naeemsyed

My Ford Galaxy Titanium X was stolen earlier this month. I bought this car (new) with extra options in May 2014 through a Ford Dealer on Credit Finance. I managed a get a good discount. My insurance company phoned me today to tell me that they are going to order a new car (like to like) as replacement.

I am totally confused and desperate to seek your advice. My query’s and questions are.

• Firstly should I accept their offer to order a new car OR should I ask them to pay off the Credit Finance Company and close my account?
  
  
• I had RTI gap insurance. If closing the credit finance account is the option to go for then would I do get any difference? Should I then order a new car on my own with a new credit deal?
  
  
• The new model of the Ford Galaxy Titanium X has come out, so will the insurance company be ordering the new 2016 model?
  
  
• Extra options that I choose when I bought the car have now mostly become standard on the new model. And new extra options are now being offered on the new model. Could I ask the insurance company to include them when ordering the new car? Will I have to pay extra for them?
  
  
• When I bought the car in 2014 I got a discount. Will the insurance company charge me extra to order a like for like new car, as they may not be able to get the same discount I did?
  
  
• Will the insurance company place the order for a new car with the same dealer I bought the car from?
  
  

Please advise ASAP. The insurance company is going to call me back after Christmas.

Thank You

dacouch

Who is ordering the car? Your car Insurer or RTI Insurer?

They will get a much better discount than you received.

stator

naeemsyed wrote: »

My Ford Galaxy Titanium X was stolen earlier this month. I bought this car (new) with extra options in May 2014 through a Ford Dealer on Credit Finance. I managed a get a good discount. My insurance company phoned me today to tell me that they are going to order a new car (like to like) as replacement.

I am totally confused and desperate to seek your advice. My query’s and questions are.

• Firstly should I accept their offer to order a new car OR should I ask them to pay off the Credit Finance Company and close my account?
  
  
• I had RTI gap insurance. If closing the credit finance account is the option to go for then would I do get any difference? Should I then order a new car on my own with a new credit deal?

Sorry don't know. Make sure you get everything in writing from the finance company and insurer if they agree to something.

• naeemsyed wrote: »

• The new model of the Ford Galaxy Titanium X has come out, so will the insurance company be ordering the new 2016 model?
  They will do whatever is cheapest for them. As long as the new car is no worse than your old car you can't complain
  

  naeemsyed wrote: »

• Extra options that I choose when I bought the car have now mostly become standard on the new model. And new extra options are now being offered on the new model. Could I ask the insurance company to include them when ordering the new car? Will I have to pay extra for them?
  The new car will only have to be equal or better spec than the old car. I doubt they will give you any freebies if they weren't on the old car. The fact that your old extras are included as standard I don't think is relevant
  

  naeemsyed wrote: »

• When I bought the car in 2014 I got a discount. Will the insurance company charge me extra to order a like for like new car, as they may not be able to get the same discount I did?
  No, they will either replace your car or give you the money it would have cost them to replace your car. How much the car cost you is not relevant. You insured a car worth X amount, even if you got it for free from a friend you could still claim for what you insured.

  naeemsyed wrote: »

• Will the insurance company place the order for a new car with the same dealer I bought the car from?
  
  Maybe, maybe not. They are under no obligation to.

naeemsyed wrote: »

Please advise ASAP. The insurance company is going to call me back after Christmas.

Thank You

xHannahx

The term of insurance is they put you back in the same position prior to accident or theft. They can leave you in a better position though.

I've just looked at terms of my insurance and nowhere does it say they will pay out cash in the event of the claim, it just uses terminology such as put me back to the same position as before the claim.

The minimum requirement is they supply you an identical vehicle to the one stolen, they can however supply better if they wish to.

naeemsyed

dacouch wrote: »

Who is ordering the car? Your car Insurer or RTI Insurer?

They will get a much better discount than you received.

The Insurance company (privilege)

naeemsyed

I would really like an expert advise about my first question please

Q: Should I accept their offer to order a new car OR should I ask them to pay off the Credit Finance Company and close my account?

HappyMJ

naeemsyed wrote: »

I would really like an expert advise about my first question please

Q: Should I accept their offer to order a new car OR should I ask them to pay off the Credit Finance Company and close my account?

Do you want the new car? If you would rather get a different car then I'd ask for the money. The money they give you though will be less than the cost of a new car. They only have to give you it's value the day it was stolen.

Aretnap

HappyMJ wrote: »

Do you want the new car? If you would rather get a different car then I'd ask for the money. The money they give you though will be less than the cost of a new car. They only have to give you it's value the day it was stolen.

Not if new for old applies which it does here).

However the ombudsman's poison is that if the customer doesn't want a replacement car the insurer need only pay what they would have paid themselves for he replacement. This is likely to be less than the OP paid and possibly less than the outstanding finance - insurers buy a lot of cars for obvious reasons, so are in a position to negotiate bigger discounts than the average consumer.

I suppose it depends on how much you like the car. If you do then a new (slightly upgraded) replacement is a good deal. If you regret buying it here's your chance too get a decent wodge
of cash to replace it - it might just be a bit less than you paid for it.

rs65

naeemsyed wrote: »

. I bought this car (new) with extra options in May 2014


........


When I bought the car in 2014

The Privilege policy I looked at covers new car replacement if car is less than a year old. What does your policy say?

dacouch

rs65 wrote: »

The Privilege policy I looked at covers new car replacement if car is less than a year old. What does your policy say?

I noticed that in the original post.

I have a feeling Direct Line offer a service of sourcing a replacement vehicle including used vehicles.

We need more information from the naaemsyed before we can give "expert opinion"

naeemsyed

I do want to purchase a new car. I had to return my original insurance documents back to PRIVILEGE and only my summary is all that is left on their website, rest has been removed. So I could not check what was written in the terms and conditions (apologies).

I did not mention this earlier. Apart from the discount which I negotiated with the dealer I also was able to get FORD employee discount (my cousin works for FORD).

So based on this new information and that I do have gap insurance. Do you still think I should ask PRIVILEGE to pay off BLACK HORSE (Credit finance)? and if so would I still too have to pay from my pocket?

I was thinking and I could be wrong that if I ask PRIVILIGE to clear/close the account with BLACK HORSE. And whatever cash (if I get any) from PRIVILEGE I try to purchase a new car from the same dealer I bought my first car from and negotiate to get a dealer discount plus use my Cousin’s employee discount again. Your advice please?