New for Old-- How does it work?

[Gagakev]

About to insure my van, and was wondering about the new for old scenario.
If the van is two years old and I Pay £10,000 and say it would be £16,000 to buy new, which price do I declare on the application
I appreciate each company will be differant but to shed some light on the matter would help, Thanks

 

[Parksy]

Hi Kev
You can only insure the sum of money that you have paid for the caravan is how our policy with the C&CC Club Care insurance policy works.
In the unfortunate event of a claim for total loss receipts have to be shown.
You can also insure equipment like the awning and things normally used with the caravan so keep receipts

We were unfortunate enough to have our previous new caravan written off in the 2007 floods only three months after we'd bought it and I'm happy to say that the C&CC had sorted it all out within a couple of weeks with no fuss or hassle. They paid the insured sum to the dealers who supplied our replacement caravan and sent us a cheque for the onboard equipment

 

[chrisbee1]

I recently renewed my CC insurance on my 3 year old Burgundy S6. I was told that as my model was no longer available if I wanted to continue with new for old I would have to pay a premium to reflect the value of the nearest current model, a Pegasus 524. Effectivily they wanted me to pay the cost of insuring a £17,200 caravan even though they valued mine at £10,500. I opted for a “market value” policy therby saving a considerable amount on the premium. For the market value they quoted I’m reasonably confident I could pick up a similar van should mine be stolen or written off.

 

[Gagakev]

Hi Kev
You can only insure the sum of money that you have paid for the caravan is how our policy with the C&CC Club Care insurance policy works.
In the unfortunate event of a claim for total loss receipts have to be shown.
You can also insure equipment like the awning and things normally used with the caravan so keep receipts

We were unfortunate enough to have our previous new caravan written off in the 2007 floods only three months after we'd bought it and I'm happy to say that the C&CC had sorted it all out within a couple of weeks with no fuss or hassle. They paid the insured sum to the dealers who supplied our replacement caravan and sent us a cheque for the onboard equipment

Hi Parksy and Chris, The solution was a bit of both, I am going with C+CC but as Chris said they wanted to insure for the new price, but like Chris they dont make my model any more so I opted for market value.
By the way I saved nearly double my membership fee so it was worth joining

Kev

 

[MagsAlan]

Hi. Sorry Im a bit late coming to this but as an ex insurance broker, i thought i might try to explain the difference between market Value and new for old.

Market value is what it says on the tin, if your van is writen off, the insurers would pay you the market value at the time of the loss,

New for old, the premium you pay is based on the cost of replacing your old van with a brand new one. You surely wouldnt expect to pay the premiums based on a 10 year old van with a value of say £5k and recieve, in the event of a write off, the finance to buy a new £15k van ( in know new for old is usually not available for 10 year old vans, this is just an illustration).
So, Gagakev in answer to your OP, you should declare the value as £16000 if you would like to replace with a brand spanking new one and are insuring on that basis. Alternatively, if the basis of cover is to be on an indemnity basis, you should insure for £10k if that is its current market value and not its p/x cost. IE what you would expect to be able to sell it for.

Hope this helps to clear things up a bit.

 

[chrisbee1]

At the speed that new models are introduced I’m surprised anyone can get “new for old” on any ‘van more than a couple of years old. It seems strange that you can insure a 10k van by stating that it is worth 17k. It could lead to the less than honest having their ‘van “stolen” when they want to upgrade to a new, more expensive model.

 

[Dustydog]

An alternative is the Gumbo direction. Self insure with a consortium of like minded caravan owners who spread the risk amongst themselves.
Where is Gumbo??

 

[MagsAlan]

At the speed that new models are introduced I’m surprised anyone can get “new for old” on any ‘van more than a couple of years old. It seems strange that you can insure a 10k van by stating that it is worth 17k. It could lead to the less than honest having their ‘van “stolen” when they want to upgrade to a new, more expensive model.

You're not saying the value of your 10k van is 17k, you are saying that to replace your 10k van with a similar brand new one would cost 17k.