Ah man, that sucks. Really sorry to hear about this Helen Any insurance company are obliged to pay out enough to cover the cost for you to replace your car with another car of similar age / mileage condition. I can't remember the exact term / definition for it, but you should be able to find it in the policy booklet from your insurer. If you provide examples to show a similar replacement will cost you more than £1000 then they have to pay that out for the claim. If they still don't budge, tell them you are going to write in to the 'FSA'. They will soon change their tune, as the 'FSA' c