Before you take out a new car insurance policy, you want to know what you will be reimbursed. That is why it is wise to look at the regulations that apply for reimbursement of a total loss or a stolen car. This differs per policy. We list the four different schemes that are available.
The differences between schemes
Insurers use four different schemes:
- The new value arrangement: as soon as your car is stolen or gets a total loss, you will get back the amount for which you can buy a new car of the same type that you had.
- The purchase value scheme: the name says it all, if your car is a total loss or is stolen, you will receive the same amount in return that you paid for it.
- The depreciation scheme: the policy conditions state what percentage of the value is depreciated per basket. The older the car gets, the less you get in return if something happens.
- The day value scheme: you receive the amount that your car is worth at the time of claiming. There are various ways in which the current value of a car can be calculated. The policy conditions state how this current value is calculated.
Example of the schemes
The scheme that your insurer uses determines how much you will be reimbursed. You can best see the difference if you see a concrete example of all schemes. Let’s take a new car of € 20,000 as a starting point. The replacement value for this type has even risen to € 22,000 a year later. The accident in which your car is declared a total loss follows six months later.
Then you will be reimbursed for each of the four schemes:
- You will be reimbursed € 22,000 for a new-for-old value scheme.
- In the case of the purchase value you will be reimbursed € 20,000.
- If there is a depreciation arrangement on the purchase value of 1.5% per month, you will be reimbursed € 20,000 (1.5% x 20,000 x 18 months) = € 14,600.
- If the insurer uses the day value scheme, the ABC price list indicates that your car is worth € 15,200 at that time.
In short: check carefully which scheme your car insurer applies before you choose your new car insurance policy.