Can insurers make me get a replacement from their preferred partner?

Grellboy

Recently had my bike stolen. Insurers tell me if/when claim approved then I will have to go through their preferred dealer. Problem is, the bike I like with this dealer is £1049 - my payout will only be £650. Same bike on other sites is £799 - easily do-able if I am allowed. So Can the insurers force me to only go through their choice, or can I insist it is my choice?

waamo

What does your policy say?

Grellboy

Just says "we will cover you up to the insured amount". Can't see anything in the small print about being limited to a specific supplier, but might in the tiny print?

waamo

In my experience they either replace like for like or give a cheque for what they value the item at.

What exactly have they said to you? I'm guessing it's that they will provide a credit note to be used at their supplier?

They may be willing to give a cheque for a lower amount. If you are getting a new bike unless you have a new for old policy then your old bike won't be worth what a new one is.

Grellboy

Just says "we will cover you up to the insured amount". Can't see anything in the small print about being limited to a specific supplier, but might in the tiny print?

Aretnap

Insurers will generally offer vouchers for a preferred desire (or a replacement item). They are in a position to negotiate significant discounts with preferred dealers so this helps keep down their costs and in turn premiums. The quid pro quo is that you should be able to buy a like for like replacement for the value of the vouchers they're offering (less any excess)

Of course if you want to take the opportunity to upgrade then you might well find that the preferred supplier isn't the cheapest... but the main purpose of the policy is to make sure you can get a like for like replacement.

If you ask for a cash settlement instead the insurer should offer one - but it will be based on the amount the insurer would have paid the preferred supplier for the vouchers, which will likely be less than their face value. If the bike that you want us significantly cheaper elsewhere this may still be the best option for you.

Blibble

And where does it say in the policy that they'll give you the bike you'd like? I may as well write-off my '06 Peugeot & upgrade to a Testarossa, or maybe a Diablo.

The insurer will have something they have priced your claim against from their supplier's catalogue which is comparable in terms of specification to your stolen cycle. FYI, there will likely be a term in your policy noting that the insurer can settle by vouchers / delivery / repairs (if applicable) / cash at their discretion.

If you take the voucher, you can also likely put this towards your upgraded replacement. However, your insurer will only pay out as much to put you in the same position on a new for old basis, in terms of specification, regardless of the value of the item stolen when new.