Seven years ago I recommended a friend to an insurance backed by a club for their latest motorhome, as being specialists in this field. Just before Christmas, his motorhome was written off whist parked outside his home in the early hours of the morning. Since then the insurers have been a nightmare. The insurers have now told him that the insurance company will not pay more than my friends paid for the motorhome, despite it being supposedly insured for market value. As we all know, the value of any pre-loved caravan or motorhome has rocketed since Covid-19 and lockdown. There are a multitude of other ways that the insurance has let my friends down but through no fault of their own, they will be left severely out of pocket. So everyone - check that you are adequately covered and get values confirmed in writing. I did, was not happy with the answers I got so went with an insurer that gave me answers that I was happier with, even though they are not 'specialists' with motorhomes. Insurance is important but good insurance is very important especially when you need it. Cheap or so called specialist insurance is not always the way. I hope this helps people steer clear of one less savoury habit of some insurers.
Insurance Warning
- Thread starter TimFrew
- Start date
I know that secondhand vehicle prices have risen over the last year or two but I'm surprised that a motorhome is worth more now than its price 7 years ago.
It is a strange world at the moment. A friend bought a Renault panel conversion five years ago and has just sold it to upgrade to something more suitable for her and her two growing kids . She got just over twice what she paid for it. Down side of course is that she has to lay out more for the new vehicle. Swings and roundabout sort of thing.
Friends of ours who had never camped, caravanned or motor home’d hired a two berth Autotrail last spring. They were so chuffed with it that within four weeks they had bought a pre owned Autotrail end kitchen two berth. It was a 2009-10 model and cost £36000, which they say was around its new price. An equivalent new model last year was over £60000. So I can believe the OPs figure.
The terms of the insurance should be the the current market price of the vehicle and not what was paid for it if the value has increased. They need to ask the insurer to show the policy wording that allows them to do this and if the wording does not support this then make a formal complaint with a threat to take it to the ombudsman. Check the wording of the policy and if it says market value point out that the cover does not limit the payment to the price paid.
The insurance for motor homes with both clubs is via brokers and there may be different companies involved. I did have a quick look at the C&CC ones which all shown seem to be cover for the market value, so limiting the pay out to what was paid for the vehicle looks wrong. It is only something that could happen now as until recently values only went down but a shortage of models at the moment has reversed this.
The insurance for motor homes with both clubs is via brokers and there may be different companies involved. I did have a quick look at the C&CC ones which all shown seem to be cover for the market value, so limiting the pay out to what was paid for the vehicle looks wrong. It is only something that could happen now as until recently values only went down but a shortage of models at the moment has reversed this.
Market value is not New for Old" insurance and if they insured it at market value a year ago, although prices have risen the insurance company is correct in paying out that market value. The friend should have notified the insurance company of the market value increase and had their premium adjusted.
Our Jeep last year was insured for market value, but now the exact same Jeep sells for a minimum of £4k more. I notified the insurance company and paid the extra for the new market value.
The jury is still out on "New for Old" if the manufacturer increases the price during the year although many policies seem to state that the insurer will pay. After all they probably get a big discount from the manufacturer anyway.
Should have said both mine and my friends policy clearly state that amount paid out in the case of a total loss is the market value at the time of the incident, not when the policy was taken out.
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Never mentioned new for old - don't think such a thing exists for older units. But 'like for like' is a different matter. In my view, insurance is there to put a policy holder back to where they were before an incident, especially where the policyholder is not at fault. A policy holder should be paid sufficient funds to buy a similar model of similar age, condition and mileage as the unit that has been written off. Insurance companies, especially those the purport to be specialist insurers will know about where the market is heading, and should make their own adjustments. They automatically adjust when market values goes down, so they should adjust when they go up. Should a policy holder do something to change the risk, such as fit a larger engine, or alter the value of a unit such as have expensive solar panels fitted, then you are right the insurance company should be told. But market value? The insurers should know this better than anybody else!! And especially where the policy clearly states that the amount paid out is the market value at the time of the incident, not when the policy was taken out.
Hi - I agree wholeheartedly - my post was a warning to check individual policies to avoid being a victim of rising prices in the motorhome and caravan market, something that I expect was not anticipated. Now some insurance companies may seek to avoid this phenomena if they can. When I checked with the people that you have commented on, the lady was very evasive about what I could expect should the worst happen, and was loath to put anything in writing to confirm it. By comparison LV was very clear about what I would be able to expect. We have our cars insured with them and have always been impressed with how we have been treated, and their premium was competitive. So we converted to a multi-car policy to save a bit and now feel much more comfortable. I really do not want my friends experience and regret having told them about CC&C. This is my story, and my friends, and reflects on nobody else. Do what makes you comfortable. But it cannot do any harm to check.
I do accept Buckman's point that the limit they will pay is the sum insured. The premium is partly based on the vehicle value so if the current value was higher than the sum insured and the premium would have been more the the sum insured is the limit. If the premium for the higher value would have remained the same then at one time the ombudsman would have accepted the higher payment was justifiable, if I remember correctly although it is now over 10 years since I dealt with this point but we did indeed pay out for some expensive professional photography equipment on that basis.
If the settlement basis is market value and the sum insured is sufficient, the price paid is irrelevant.
I was advised over 40 years ago when I had an Insurance Claim to contact an Insurance Loss Assessor. I found that even though they charge 10% of what you may receive, they will by getting involved increase the value for your claim which will more than cover their charges. Its only a phone call to one to see if they will take it on.
Having been in a room where my Loss Assessor was arguing with the Loss Adjuster appointed by the Insurance Company to reduce my claim I can say they are worth every penny. (and my last job was at an Insurance Company dealing with claims)
Having been in a room where my Loss Assessor was arguing with the Loss Adjuster appointed by the Insurance Company to reduce my claim I can say they are worth every penny. (and my last job was at an Insurance Company dealing with claims)
As a policy holder can you request a copy of the assessor's report? After all you are a customer and ultimately you are paying for the report to be done.
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