New for Old Car Insurance

[plowter]

You can get 'new for old' insurance for most consumer items. Why can't you get 'new for old' insurance for a car?

[Hymie]

If I had �New for Old� car insurance � I would deliberately crash my 10 year old Mondeo and have a brand new model on my insurance company.

[plowter]

Can't see the problem. You'd obviously pay through the nose for the insurance, but you'd get what you'd paid for.

If you buy a new car and it's written off a day later you lose a few hundred or thousand through depreciation irrespective of fault. Seems like a viable financial option to offer you the choice of paying a bit extra for new for old.

[JB]

Lots of insurance companies offer 'new for old' if the car is written off within the first 12 months.

[buildersmate]

Can see the problem.
If you are young, most of the cost of car insurance is for the damage you do to others. That's why youngs people still have to pay loads for driving a cheapo car around - often more than the value of the car. For older people a new for old would cost huge sums.
Consumer items, and especially toasters, don't generally bang into one another.

[Hymie]

To offer me a new for old insurance policy on my 10 year old Mondeo - an insurance company would have to charge me an annual premium of around �15,000 to stand a chance of not loosing out on the deal.

The reason many insurance companies can offer new for old on household policies, is that often the new price of the item insured is falling significantly over time � especially electrical items. I remember a buying a 32 inch TV for around �600, three years later my mother bought the same model for �300.

[bednobs]

you can get gap insurance on new cars. If it is written off int he period covered by the insurance it will pay off your finance