I'm about to take delivery of a new car (Hyundai Veloster Turbo) and went to NRMA to organise comprehensive cover for my new car. The lady suggested that if I liked the car, that I stick to market value since NRMA provides new-for-old replacement within the first two years. Market value is obviously cheaper. After reading around and some thinking, there are some scenarios where this could bite me.
1. The exact same car is not available anymore in Australia. I believe the Veloster Turbo will be around for a while but the PDS states "same make, model, engine size, equipment level and paint type". So what if I need a new car in 2016, will they look for 2016 built cars or 2014 built cars to replace with? Obviously there won't be many new 2014 cars around which will mean that I need to accept a lowish cash payout. The model name changes every year and not to mention that the accessories that come standard will change as well (might affect the "equipment level" requirement). How specific is NRMA with the vehicle match?
2. I don't want the exact same car again, maybe I hate it and want a different make. I will need to accept a lowish cash payout.
3. Setting the unspoken contractual value of the policy to the price of a new vehicle will raise that write-off point. Could mean that they try to repair a very damaged vehicle.
I would love to hear experiences/thoughts from other ozbargainers regarding NRMA's new for old policy. Am I missing anything else? Is there something wrong with any of my 3 points? Is it worth saving $250 to drop from agreed value to market value in the first two years given that it may not matter if they are required to source me a new vehicle?
From the PDS:
If we agree to pay your claim as a total loss, then you may choose to
replace your vehicle with a new one if all of these apply:
• you bought your vehicle as a new or demonstrator vehicle
• the incident we cover happens within 2 years from when your vehicle
was first registered
• your vehicle’s tare weight is less than 2.5 tonnes.
Covered
• to replace your vehicle with a new one that has the same make, model,
engine size, equipment level and paint type if it’s available in Australia
• to replace any of the following that apply to your vehicle:
– modifications
– options
– accessories
• the cost for 12 months registration and CTP insurance for the new vehicle.
My experience with RACV for a similar insurance plan.
Three months ago, I had my 2013 MY14 VW Golf Comfortline W/O Reversing Camera written off (stat. write off). When I purchased the car, I received a $1,000 discount over a standard VW Golf Comfortline. When it came to the claim I was told that the market value of my car was about $25,500. In this instance it was better economically to go for the "new-for-old" replacement. 2013 MY14 VW Golf Comfortline W/O Reversing Camera were no longer in production but RACV were happy to replace it with the closest equivalent, which was a 2014 MY14.5 VW Golf Comfortline with Reversing Camera.
Because I initially received the $1,000 discount, RACV wanted me to pay that in addition to my excess. I though that was pretty fair considering my alternative was the cash pay out of $25,500, whereas with the replacement, I was effectively getting about $28,500 worth of car. RACV got a quote for the replacement and told me that my new car would be ready in two months, when I said that was too long, is there an alternative, I was told that RACV would happily pay the dealer what was quoted for the replacement under the insurance plan and I could pay the difference for a different vehicle. I ended up paying a few thousand extra and getting one model higher in the range because there was more stock.
I know it's a different insurance company, but hopefully my situation helps in some way.