New Car Write Off

Pat49

My daughter recently had her 5 month old car stolen from work. She did not have GAP insurance as her policy was new for old in the first year, and on the MSE site it even states you would not need gap if this facility is in the Comprehensive insurance. However, Ford have recently changed the models and her car technically is no longer available. As a result the insurance company are only offering the book value instead of the new for old and this is causing a £5000 difference. Surely if the model has changed they should offer "the equivalent" model? How are people to know if a manufacturer changes models? It effectively invalidates the New for Old clause and then they will need GAP insurance. Has anyone else had experience of this?

molerat

You will rarely be able to get the exact same model after 6 months anyway and I don't know of any Ford models that have ceased production completely in the past year. An easily identified equivalent model will be available. I would raise it as a formal complaint.

Aretnap

The Financial Ombudsman has published some guidance on this. I'm linking to an old version of the page as they've made the current version more "user-friendly"by removing much of the useful information, but AFAIK the underlying guidance still applies.

https://web.archive.org/web/20151023133911/http://www.financial-ombudsman.org.uk/publications/technical_notes/motor-valuation.html#10

In particular see section 10

Some policies include a "new vehicle provision" stating that the insurer is only liable to provide a new vehicle if the same make and model – and sometimes specification – is still available in the UK market.

If such a vehicle is no longer available, we are unlikely to agree with an insurer’s decision to pay the consumer less than what it would have paid to replace the vehicle with a new one had it been available. Sometimes an insurer may offer the next model up in the range and we are likely to consider this to be fair.

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.

If a phone call quoting the section above doesn't get her a better resolution then I'd suggest a formal complaint to the insurer using the procedure outlined in the policy documents. If she's not satisfied with the response to her complaint then she can escalate it to the Financial Ombudsman.

k3lvc

What is the exact make/model/spec and then people can start to help - if it's only 5m ago there must still be a 'nearest equivalent' or have they mad an offer of something that she's already rejected so they've reverted to cash ?

Quentin

Usually if no equivalent is available the insurer will refund the price paid (or the current list price - whichever is the lower)


Usually the car should only have the one registered owner - and be brand new. She should check her policy wording and if they are not abiding by the condition then a complaint followed by escalation to the FOS if unhappy with the reply is the route forward

dacouch

Is the Insurer Hastings?

I ask as I have seen them try this before, if I remember correctly they backed down.

Which Insurer is it?

cjmillsnun

molerat wrote: »

You will rarely be able to get the exact same model after 6 months anyway and I don't know of any Ford models that have ceased production completely in the past year. An easily identified equivalent model will be available. I would raise it as a formal complaint.

The Fiesta has changed in 2017.

daveyjp

Fiesta has only had a mid life ‘facelift’. It is still available and no reason not to settle.

Insurance company as always are taking the mick. Formal complaint time asap.