Replacement Parts: When your car was damaged in an accident the insurance company will be responsible for the repair to the car. Many insurance companies will insist that you use an approved repairer as they need to insure that the car is properly repaired and only original replacement parts are used.  See approved repairer in this glossary for more details.

Replacement Items: If your car was written off in an accident, or not recovered after theft or hijacking, you will be paid out for a total loss. If you buy another car to replace your previous car you need to advise the insurance company of all the details of the new or replacement car. The car will not be automatically insured as the insurance company will not know the details of the car.

Basically, it will be treated as a new car insurance contract and the premium will depend on the make, model, age and value of the car. Because of the loss and subsequent settlement you would have lost your no-claim bonus and will be asked to pay a higher premium on the replacement car.

If your car was new and less than twelve months old with less than 30 000 kilometers on the clock, your car will be replaced with a new one. If it is a second-hand car you will be paid out the current market value. In each case you will still be responsible for the excess and other costs involved in having to replace the car.