Every one in the the UK who has fully comprehensive van insurance is insured new for old? Right? No wrong.
Van insurance companies don’t actually ask the question in many cases of how you are affording and paying for your van but the way you pay affects this.
Only methods such as hire purchase and lease purchase will automatically give you mew for old cover. Finance lease and contract hire will not. Since the majority of our customers take out finance lease as its hands down the best method this leaves many at risk. The risk is that if the vehicle is written off say a year down the line the insurance company will only pay for a replacement vehicle of the same age. The settlement is likely to far greater than the vehicles value at say a year old
A customer buys a van on finance lease and after a year through no fault of their own the van is written off. The settlement is £27,000 and the value given by the insurance company is £17,000. The insurance company will pay out £17,000 and customer is expected to make up this £10,000 on their own. Its a very very difficult situation indeed for the customer.
How to cover this shortfall
Have a chat with Swiss Vans about GAP insurance which literally bridges the GAP should this be the case. It will pay out on the difference thats missing in most cases. We have structured questions that will determine if this is right for you or not.
Declaration of Mods
Anything such as a spoiler or a a set of alloys should declared to the insurance company well in advance. Should you write the vehicle off and and the customisation is revealed some insurance companies will reduce the payout by the amount that the premium will have increased.
An insurance assessor views a write off and it has undeclared alloy wheels. They will potentially say the premium would have increased by 20% or even 40%. Thus they will then reduce the payout by say 20%. So instead of paying out £17,000 you will get £13600. This includes the new interior of course
Put in your registration number and check out how to get the lowest premium now.