Insurance Age

Getting to grips with grey import costs.

Q: What happens if you buy a £25,000 BMW in Europe for £20,000 and it is involved in a write-off in ...

Q: What happens if you buy a £25,000 BMW in Europe for £20,000 and it
is involved in a write-off in the UK. Will the insurer pay out for £25,000
or £20,000?


A: Under the terms of most policies, insurers have a clause whereby if the
vehicle repair costs exceed 50% (this may read 60%) of the value (based on
UK values) within the first 12 months, then, provided a like-for-like
model is available, the insurer will replace the vehicle as new.


If a replacement is not readily available in the UK, the

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