Hi. Just wondering what the majority go for on here. Just looking at quotes as a newbie. Many thanks in advance.
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Market value or New for old?
- Thread starter WillsTourer
- Start date
We are new for old. The caravan is 3 years old. You have to keep an eye on the replacement cost when you renew to ensure the figure you use remains correct.
Thank you. As we've bought the van on finance I'm not 100% sure if I can use the new for old policy? The quotes for both are pretty reasonable. The new for old is roughly double the market value quote.
Why do you think buying it on finance affects how you insure your caravan? All the finance house should care about is that they get their outstanding loan paid off. How you arrange that is up to you.
Yeah I'm just unsure about where I would stand in the unfortunate event of a write off. Saying we bought our van used for circa 15k and then it's replaced by a new van circa 39k. I'm just not sure what would happen regarding the finance. Sorry if it appears to be a stupid question.
Ask the potential insurers. I’ve insured a second hand ban for new for old. But it was only 2 years old at time of purchase. .
Yeah good idea. I'll have a word with the insurers and go from there. The reason I asked was because I think the finance is secured against the caravan.
The contract terms and conditions for your finance loan should also specify any requirements for specific insurance cover if the finance company want to.
Yes good point also. I've spoken with someone at Pickles insurance and they said it makes no difference to them how the van is purchased.
If the purchase price was say £15k and you insure it new for old at £35k if it gets stolen or written off you will owe the finance company whatever is outstanding on the agreement. The insurers will pay out £30k, you pay off tge outstanding finance and use the remainder of payout to buy yourself a new caravan. You will have the insurers payout, minus the outstanding finance to pay,ay with.
Yeah that's what I realised after much over complication! I ended up using caravan guard and doing the market value option in the end!
In the event of a market-value write-off your insurer will/should settle the finance and give you any balance - leaving you free to buy a new caravan using whatever finance and insurance you wish.
If you bought a used caravan then market-value seems more appropriate.
If you want new for old you will have to insure the Caravan for the present day price to buy a brand new model, which will be more than you paid. Which if you never have to make a claim is expensive premium to cover a far smaller value. If buying second hand more than 3 year old probably more economical to go market value with a lower premium.
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