Hi all.
My daughter had a car accident, not at fault police report says. Comprehensive insurance with Allianz with new for old replacement if car is under 3 years old and it is. Car is write off, assessed by Allianz assessor.
Anyone had any experience with similar situation? What I can expect, what to look for and how the process will go. It was a Golf bought from Volkswagen dealer and they arranged, finance and insurance. Knowing Insurance companies what kind of traps I can expect?
Thank you.
Does she get a 2020 model, or a new 2018 model?
Current model
It probably depends on what is available, and the wording in the policy. New 2018 might meet the policy wording, if one is available.
I was under the impression that the new for old was only for cars under 2 years old?
Yes, where the car < two years old from its original registration date is the standard.
I know that GIO Platinum allows for lifetime new car replacement so there could be other policies with variations on 'car newness'
I just went through my PDS and you're right, it does say lifetime replacement. Almost make me regret being an excellent defensive driver now :(
My wife is with RACV and hers is 2 years or less.
Defensive driving is a must-have skill out on the fast & furious streets, in shopping centre car parks, etc.
@[Deactivated]: lol - "But it wasn't my fault, Officer - I must have been under the influence of toxic fumes from my new car!"
How much extra are you paying for your policy if they would replace a 10yo car with a new one?
@Euphemistic: Say your car is no longer made, they will find something that's "equivalent". That may from the dame manufacturer, or not. There's also a time limit, so if you have a specially ordered car that took 6 months to arrivem you may be out of luck and have to take something in stock or on it's way on the boat as GIO specified a 3month time period to replace.
I enquired about this recently when looking at a potential car purchase (now delayed thanks to Covid).
GIO said if you don't want their replacement, you then get the option of the payout, os you must make sure you've got an agreed value as the default is at the bottom of the range for the car. For example, a new car at $34500 drive away was listed as $30,600 by default on the insurance policy.
Edit: FWIW, the GIO Platinum insurance was the cheapest policy I found for the car, even with the agreed value bumped back up to the right level. How that plays out further down the line who knows though.
@nafe: Interesting it doesn’t cost more for ‘platinum’. I get that they replace new equivalent for old, but by the time you have a 10yo car it’s worth 10-20% of the new car and that is a big difference for the insurer to make up. Normally as your car ages you would get a lesser payout.
Obviously, for a 1-3yo car it is probably worth them replacing with new if you write it off. Less hassle for them too.
@Euphemistic: Sorry, to clarify, the Platinum was more than GIO's "regular" policy, but it was still cheaper than NRMA, Allianz etc
I would imagine that as time goes on, the usual price creep for insurance kicks in, then it becomes less desirable for people to maintain the Platinum cover for an older car. So they drop back to normal coverage and GIO is off the hook.
@Euphemistic: I pay $2052.99 with an excess of $1600, which was about $330 more p.a. They've slightly undervalued my car at $98,230, which is fine as I am eligible for Porsche corporate discount through my employer and didn't pay market value.
If you use the insurer from the dealer some give you 3 years, I own Toyota and they are 3 years new for old
Good to know. Thanks.
First trap is that QPS has 28 days to complete police report. We have been given report number, verbally told that she is not at fault but can not do anything. We have a rental car option on policy but until report is finished Allianz is not doing anything. I am going to obtain a rental car myself and once report is done Allianz will reimburse.
Alliances new for old policy reverts to replacment value when the model changes or becomes unavailable.Just recently went through this with a 2019 Holden Spark an associate also had the same with one of the very last VF Commodore Utes. Watch out all you recent Holden buyers.
Any Traps?
Yeah, they’ll give you another VW…
Allianz still slow and not doing anything. Contacted Volkswagen and they are great, new vehicle sourced, paperwork signed and sent to Allianz.
Just to update, got a call from Allianz and they have ordered a new vehicle and it is coming in two weeks. Only issue is that I have to pay excess because Allianz still did not get police report.
New for old replacement, you get the same new car, that is.