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Scrappage value

I am taking advantage of the scrappage scheme to trade in my N reg Peugeot 106 to buy a Hyundai i20 on 1 September. My insurer refuses to amend the value of my Peugeot 106 and says it would (in the event of theft or write off) only pay the Glass's Guide price, which I guess is well under £1,000 (the value to me under scrappage). I have offered to pay a higher premium to no avail. I know you have commented before that insurance should put the insured back in the position he/she was in before incident.

Asked on 5 September 2009 by

Answered by Honest John
There would need to be a full county court case taken to appeal to decide this issue. If you have pre-sold a car for a part exchange allowance of £2,000+ against a new car, and could not otherwise obtain that discount off a new car, then you could contend that your car was worth £2,000. Your insurer may counter that, as long as the wrecked car has a current Mot, tax and insurance, and has not actually been declared an insurance damage write off, then it does not matter how smashed up it is when you offer it for p/x because the allowance is being paid for it to be scrapped anyway.

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