Hypothetical Insurance Question

Honest John Back Room » Motoring discussion
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Tue 8 Feb 2005 00:11
Hypothetical Insurance Question - Jane
Just to settle a 'debate' between me and my brother:

If a car that was worth £20k in 1999, and was insured fully comp, was stolen...how much would the insurance company pay out? What the car was worth new? or what it was worth just before it was nicked?


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Tue 8 Feb 2005 00:20
Hypothetical Insurance Question - Quinny100
Insurers would pay the market value at the time of the loss.

You would need additional GAP insurance to receive the full purchase price of the car.
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Tue 8 Feb 2005 10:40
Hypothetical Insurance Question - Dalglish
Just to settle a 'debate' between me and my brother:
If a car that was worth £20k in 1999, and was
insured fully comp, was stolen...how much would the insurance company pay
out? What the car was worth new? or what it
was worth just before it was nicked?


for a full authoritative answer, read

www.theiob.org.uk/digest/v/valuation_of_motor_vehi...l

and

www.theiob.org.uk/digest/a/accident_depreciation.h...l

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Tue 8 Feb 2005 19:18
Hypothetical Insurance Question - DavidHM
As simply as possible, the replacement cost of the car, i.e., what you would expect to pay, after allowing for a little haggling and the value of any repairs, additional warranty, etc., for a similar car in similar condition from a dealer's forecourt.

That would be slightly more than the car's trade in value but less than the full asking price from the dealer.

So a £20k car in 1999 would now probably be worth between £3k (Mondeo 2.0 Ghia) and £7,500 (BMW 318i), for instance.
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