My son and his partner purchased a pre-reg Clio Music with zero miles last October for the advertised price of £8,500. In December, whilst stationary in a jam on the motorway, they were hit in the rear by another driver who admitted total liability. The estimated cost of repair £5,400. Their policy states that if the repair is more than 50 per cent of the new price they will replace the car. This they will not honour.

As they are not at fault, surely their insurance co should seek recompense from the guilty driver's insurance and therefore should incur no cost? I believe the law states they should in no way come out of this worse off, but having spent 40 years in the trade I know few dealers would want to pay Glasses Guide price for a 2,000 mile 3-month old car with a £5,400 repair done to it. Could you please advise how best to proceed?