My rights when my car is recovered after being stolen

[Coleman]

My car was stolen and recovered with little damaage it is currently at the insurers garage.  I do not want the car back as it was involved in a crime and I understand that the fact that it was stolen and recovered reduces the value.   I understand that I have the right to  refuse the car and ask for a replacement (like for like) if not cash (I also have gap insurance)  - Do I have this right?  its a brand new VW Golf.

[jake-the-peg]

That's likely to depend on the exact wording of yuor policy, and things like exactly how brand new "brand new" is.

My advice is read your policy very carefully and then phone up the insurance company - preferably the underwriters claims department and tell them what you want and take notes of the conversation

If you then don't see eye to eye take the policy and notes to a solicitor - it'll cost a few quid but then so does a new Golf.

Hopefully though the claims department will be helpfull, my experiences have usually been good talking direct. Generally talking to the brokers has been a waste of time.

[Ding-Dong]

No, you do not have this right.

Your policy will allow your insurers, at their option, to either (1) pay for the car to be repaired or (2) replace your car. 

In practice, where the vehicle is not a write off, insurers will always choose to pay for the cost of the repairs. Option 2 applies where the vehicle is written off and it is under one year old, they will replace with a new car.

The insurers duty is to indemnify you, that is to say, to put you in the same position post loss as you enjoyed pre loss.

As the car only has minor damage, and as they are arranging for that damage to be repaired, they have honured the indemnity rule and have therefore fulfilled their part of the contract.

Going to see a solicitor would be an utter waste of money.  

[tubeway]

If a car is stolen and recovered it will not affect its value. A car being written off can make a massive difference.

GAP insurance will not mean that your insureres have to pay cash. It means that depending on the type of GAP if your car suffers a total loss claim (i.e. is written off) they will either

1. Ensure that there is always enough to pay off the finance company if the car is written off
2. Top up your insurance claim to the value that you paid for the car (but very often only at the supplying dealer) - If it is a brand new car you probably will not need this as most insurers will replace the car under 2 years old

[Coleman]

Thanks for your help peeps,  I will take the car back and the insurer has said that because damage is minor it won't go on HPI register as stolen and recovered.   So value should be okay.  I have asked them to confirm this in writing.