New for old insurance and finance

[trueblue1969]

We are new to caravaning and unfortunately have had our pride and joy stolen 😡.
Luckily we are insured with new for old but not sure how this will work with outstanding finance is anyone able to shed any light on what will happen?

 

[Damian]

The only people who can answer that is the insurance company you are with.

The first thing that will be done is the finance company , who are the owners of your van, will need to recover any outstanding money on it. Whilst there is outstanding finance you are just the custodian until that money is repaid.

Another thing to be aware of is the age of the van, is it brand new or second hand? as that will affect the claim.

Whilst you have "New for Old " that does not always mean what you may think it does.

 

[Parksy]

In 2007 we bought a new caravan and insured it via the C&CC Club Care insurers on a new for old policy.
The seasonal site where we kept the caravan was flooded and our new caravan was affected.
The insurers promptly sent one of their assessors to inspect the damage, and he declared the caravan a total loss (a write off)
The insurers had insured the sum of money involved in the purchase price, plus accessories such as the awning, awning chairs, leisure battery, TV etc.
We agreed the cost of the accessories and the insurers sent us a cheque for them.
The insurers asked us to choose a replacement caravan from a dealership and they agreed to pay the dealers the balance of the sum of money insured ( the original purchase price of our caravan)
We could choose any caravan that we liked, and in our case we decided to upgrade our original model to a twin axle end washroom fixed bed model.
The dealership dealt with the insurers to recover the insured sum of money, and because we'd chosen a more expensive replacement we paid the difference.
Our experience with the C&CC was easy, trouble free with no stress or bother.
Good luck, please let us know how you get on.

 

[trueblue1969]

The only people who can answer that is the insurance company you are with.

The first thing that will be done is the finance company , who are the owners of your van, will need to recover any outstanding money on it. Whilst there is outstanding finance you are just the custodian until that money is repaid.

Another thing to be aware of is the age of the van, is it brand new or second hand? as that will affect the claim.

Whilst you have "New for Old " that does not always mean what you may think it does.

Thanks for the reply I think the biggest problem is that we insured new for old at the rrp of the van at new in 2021 when we bought it , but now in 2022 the vans have jumped up in price that much I don’t think we will be able to get a new equivalent now☹️

 

[trueblue1969]

In 2007 we bought a new caravan and insured it via the C&CC Club Care insurers on a new for old policy.
The seasonal site where we kept the caravan was flooded and our new caravan was affected.
The insurers promptly sent one of their assessors to inspect the damage, and he declared the caravan a total loss (a write off)
The insurers had insured the sum of money involved in the purchase price, plus accessories such as the awning, awning chairs, leisure battery, TV etc.
We agreed the cost of the accessories and the insurers sent us a cheque for them.
The insurers asked us to choose a replacement caravan from a dealership and they agreed to pay the dealers the balance of the sum of money insured ( the original purchase price of our caravan)
We could choose any caravan that we liked, and in our case we decided to upgrade our original model to a twin axle end washroom fixed bed model.
The dealership dealt with the insurers to recover the insured sum of money, and because we'd chosen a more expensive replacement we paid the difference.
Our experience with the C&CC was easy, trouble free with no stress or bother.
Good luck, please let us know how you get on.

Thank you ,as we financed some of the van we’re not sure what will happen we’re quite happy to just get another van but do we start a new finance agreement or do they just transfer it to the new van?

 

[otherclive]

Thank you ,as we financed some of the van we’re not sure what will happen we’re quite happy to just get another van but do we start a new finance agreement or do they just transfer it to the new van?

You are best to talk to the insurers and the finance company.

 

[trueblue1969]

You are best to talk to the insurers and the finance company.

Cheers I was just trying to get a picture of the scenario’s so we could decide what to do tbh

 

[Johnb]

Apart from anything else you will get no more than the amount you insured it for. My policy is new for old but I had to hike up the insured value a few thousands this year to cover the equivalent new van at today's prices.
Don't forget that your contents are part of the total sum you used.

Good luck with your problem.

I'm not sure how the finance will be sorted but it seems likely that after all the hurdles have been overcome you will not receive sufficient to replace with an equivalent van and accessories unfortunately.

 

[trueblue1969]

Apart from anything else you will get no more than the amount you insured it for. My policy is new for old but I had to hike up the insured value a few thousands this year to cover the equivalent new van at today's prices.
Don't forget that your contents are part of the total sum you used.

Good luck with your problem.

I'm not sure how the finance will be sorted but it seems likely that after all the hurdles have been overcome you will not receive sufficient to replace with an equivalent van and accessories unfortunately.

I know they went up £5000 in the 8 months we have had the van so how do you take out 12 months insurance 😳I would of told them the new rrp when renew

 

[Johnb]

Yes. We had our warning in the renewal invitation. It gave a price within a few pounds of the previous year BUT pointed out that there have been increases in purchase prices.

As you might expect, the premium duly increased as we insured for the more accurate sum.

I would hope that your company understands your situation and pays out the full amount you insured for. As you say you would have given the "today" price on renewal.

Be careful that you don't "over estimate" your belongings. That is one area where Insurers may argue that you were obviously underinsured in this respect since clearly we have not seen the degree of price increases for aqua rolls etc!

Caravan price increases could not, I don't think, be foreseen and your underinsurance hopefully will be seen as a product of our times and not a matter of misrepresentation.

Fingers firmly crossed for you.

 

[RogerL]

Don't forget that your contents are part of the total sum you used.

Not necessarily - it's quite possible to insure the caravan without the contents - and using home insurance for items "away from home" is often cheaper.

 

[Raywood]

Generally the insurer will want to source a new model to try and get a discount but some will let you find your own. You may want to trade up and if so most insurers will contribute the cost of what you had, leaving you to pay the balance. With new models being scarce at the moment there may be problems getting the exact same model, so some compromise might be needed or a long wait for what you had. .
As for your belongings the best way is to go on a web site and price everything you can and use that for the costs and then it is difficult for them to argue. There may be odds and ends you cannot find but do use a sensible figure and if you can show any original purchases do that.
If there is any finance outstanding this might need to be paid to the loan company although many will be happy to transfer the loan to the new model or they may want the old one paid and let you have a new one. . Again it depends on the companies involved.
If you elect not to replace the caravan, the cover will normally revert to market value.

 

[Buckman]

New for old means just that no matter what sort of increase a manufacturer may impose. The insurer has agreed to replace your older caravan with a one of the same model and specification if the caravan is stolen, damaged etc.

 

[ProfJohnL]

The details of your cover, what is and what isn't covered, and how the insurer will respond to a legitimate claim are all specified in your policies T&C's. That where you should be seeking answers and if its not explained there, then contact your insurer to have any points clarified as they control the details.

Whilst there may be some points made in forum replies that might apply to your policy, you cannot assume all of them have been correctly interpreted. Check with your insurer.

 

[Dustydog]

New for old means just that no matter what sort of increase a manufacturer may impose. The insurer has agreed to replace your older caravan with a one of the same model and specification if the caravan is stolen, damaged etc.

Yes but only up to the replacement sum insured you choose. There was a time where the caravan was one one year old or less what you say was correct .
Caravan and contents and equipment are usually separate items of sums insured,
Did your finance company ask to have their interest noted on your policy? Was it a personal loan without collateral?
Gap Insurance has been available for some time to cover depreciating assets when the total loss value , based on market value is less than the outstanding loan.
We need a bit more info from you. You need to discuss all these aspects with your Insurer

 

[Buckman]

Yes but only up to the replacement sum insured you choose. There was a time where the caravan was one one year old or less what you say was correct .
Caravan and contents and equipment are usually separate items of sums insured,
Did your finance company ask to have their interest noted on your policy? Was it a personal loan without collateral?
Gap Insurance has been available for some time to cover depreciating assets when the total loss value , based on market value is less than the outstanding loan.
We need a bit more info from you. You need to discuss all these aspects with your Insurer

In many cases it is the insurance company that chooses the value i.e. none of us know by how much the new caravan is going to increase until the manufacturer releases those details.
For example you insure the caravan in Oct this year on new for old basis for £30k as that is what a new one costs at the time, but in Aug the next year the price increases by £4k for the following year's model, how can a consumer anticipate this increase?

 

[otherclive]

Cheers I was just trying to get a picture of the scenario’s so we could decide what to do tbh

To my knowledge I cannot recall any previous posts relating to anyone in the identical position to yours. Hopefully the two parties will help you sort it out without too much disadvantage to you. Be interested in hearing in how your insurer and finance house sort this out. Good luck anyway.

 

[Dustydog]

In many cases it is the insurance company that chooses the value i.e. none of us know by how much the new caravan is going to increase until the manufacturer releases those details.
For example you insure the caravan in Oct this year on new for old basis for £30k as that is what a new one costs at the time, but in Aug the next year the price increases by £4k for the following year's model, how can a consumer anticipate this increase?

Just checked our CAMC caravan cover. The super cover gives new for old but interestingly asks for a sum insured. One to discuss with the Insurer😉

 

[RogerL]

Just checked our CAMC caravan cover. The super cover gives new for old but interestingly asks for a sum insured. One to discuss with the Insurer😉

Last time I was with CC Insurance with a new caravan and New-For-Old, they increased it automatically each year to cover the increased cost of a new caravan.

Morally, the insurer should accept the extra cost of price increases since the last renewal - but I wouldn't like to say what the legal position is.

 

[Dustydog]

Last time I was with CC Insurance with a new caravan and New-For-Old, they increased it automatically each year to cover the increased cost of a new caravan.

Morally, the insurer should accept the extra cost of price increases since the last renewal - but I wouldn't like to say what the legal position is.

mine was the same but even their increase was a % based on the original purchase price. So variations did arise. One to be sorted at inception / renewal of the policy.

 

[Buckman]

Just checked our CAMC caravan cover. The super cover gives new for old but interestingly asks for a sum insured. One to discuss with the Insurer😉

Our CAMC cover "New for Old" simply lumps Caravan and Associated Equipment together. There is no fixed value for the caravan as a stand alone unit.
Strangely nowhere in the insurance documentation is the phrase "New for Old" mentioned or even the phrase "Market value". The booklet is for Standard and Super Cover.

 

[Raywood]

The sum insured is the maximum the insurer will pay in the event of a total loss. although if the price has risen above that you will have to pay the balance provided the difference is within a stated percentage stated in the policy. I found ours was getting very tight with the current increased prices and tried to increase it, but was told this was not possible on that policy, so have added a bit at renewal to cover this now. The sum insured is based on a percentage of the sum insured so you will not get anything for inflation whether that is moral or not.
The policy will not make a specific way of settling a total loss, but show replacement or a cash settlement at the insurers option for total , but if you ask for cash they will only give market value.
The insurer will base any market value settlement on the Glasses Guide figure unless the caravan is older than the book quotes a price for. Unfortunately you cannot buy the guide so have to take their word for it or get it from a friendly caravan dealer. If you want to contest it you will need to find other similar models for sale and show them as proof that the offer is low.

 

[Buckman]

The sum insured is the maximum the insurer will pay in the event of a total loss. although if the price has risen above that you will have to pay the balance provided the difference is within a stated percentage stated in the policy. I found ours was getting very tight with the current increased prices and tried to increase it, but was told this was not possible on that policy, so have added a bit at renewal to cover this now. The sum insured is based on a percentage of the sum insured so you will not get anything for inflation whether that is moral or not.
The policy will not make a specific way of settling a total loss, but show replacement or a cash settlement at the insurers option for total , but if you ask for cash they will only give market value.
The insurer will base any market value settlement on the Glasses Guide figure unless the caravan is older than the book quotes a price for. Unfortunately you cannot buy the guide so have to take their word for it or get it from a friendly caravan dealer. If you want to contest it you will need to find other similar models for sale and show them as proof that the offer is low.

No mention of any of the above in the CAMC documentation so one assumes that even if the price has risen the CAMC wil cover the loss?

 

[ProfJohnL]

No mention of any of the above in the CAMC documentation so one assumes that even if the price has risen the CAMC wil cover the loss?

Do not assume check with your insurer.

 

[Dustydog]

Ian
Here is the policy schedule from my CAMC cover. Pretty clear on what I have👍

Caravan and Associated Equipment £28,500
Contents£1000
Hotel and Caravan Hire £3375
Miscellaneous Expenses£3500
Liability£5,000,000
Personal Liability Personal Accident£50,000