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Have been looking around for insurance for my van.

A  statement that appears on most application is " We will pay out market value"

Question:- Is market value (1) what you you get if you traded in your caravanvan to a dealer or (2) what you would have to pay to  a dealer to purchase a caravan.

From my investigations their is a £1500/£2000 difference.

When I asked companies  for market value they decline, they advised me to get Glass's guide as they did not have a copy.

Market value will be however that is defined by the Insurance Company. It can mean what you would have to pay on the open market for an equivalent van or what Glass's Guide says is the market value for a van of your type and age. Then Glass can have two values i.e one with the dealers mark up and the other with a private sale value. You will probably find that market value is the lower of all of these variables to the Insurers when it comes to paying out. The market value will be the market value of your van (before the claim incident) and not the market value of some other equivalent van.

Then they will not pay out any more than the value you have insured the van for on the basis of "market value", so you need to make sure that your insured figure is the higher of the above variables. That may sound odd. If they only pay out the lower figure why pay a higher premium for a higher insured figure?. Just a general principle of never being under insured, and premiums don't really go up so much (if at all) just because the insured sum is a bit higher, but the choice is yours.

If they pay new for old the "market value" will be whatever it costs to get an equivalent van, or, if your policy allows it, the same type of van. So with our insurers we insure for the same van, rather than "equivalent" , but the latest model the company has manufactured at the time of any claim. So if we claim now we would get a 2011 Odyssey 540.

Then, (sorry but simple questions can have complicated answers!!) if the van is damaged and it will cost less than the "market value" to repair, policies usually allow Insurers to meet repair costs rather than provide you with funds for new. It is then your choice whether you get the van repaired or put that money, plus your savings, towards a new van. It's often better, in claim terms, to have the van stolen rather than damaged.

It is important when taking out insurances to understand just how your insurance company deals with claims so you know you are with the right company. Hopefully, the above will give you enough food for thought to ask your proposed insurers some detailed questions. I guess that the person you spoke to may have been via a call centre (isn't that often the way?). That individual may have his crib sheet of standard questions and answers and so may not have been sufficiently trained up to deal with any of the above issues. You need to get a manager or supervisor to have a chat with you.

Phil

Thanks Phil

I am digesting the content of your comprehensive reply.

Regards

Dug