Assistance required with insurance claim

[Taffy Turner]

Anyone here an expert in motor insurance?

Back in October is was involved in an motor accident that was not my fault. Fortunately I walked away unscathed (I was driving a 4x4 - if I had been in a car I would not have been so lucky).

My insurance company decided in their wisdom that my vehicle was not an economic repair. I heard nothing more from them for about 6 weeks, during which time I went out and bought a replacement vehicle (using money I had to borrow from my parents). The replacement vehicle was the exact same make, mileage, model and year as the one that was written off, and cost me £7500.

My insurance company have now sent me a cheque for £6000 in compensation for my vehicle, and are refusing to budge on this valuation, in spite of me having sent them half a dozen examples of similar vehicles for sale at £7500 and above, and also a copy of the receipt for my new vehicle.

Anyone know what my next move should be (I have informed the Ombudsman, but they don't want to get involved until the insurance company have been given chance to resolve the dispute).

Regards

Gary

 

[ike]

I'd guess it hinges around agreement on what is (was) the fair market value. If you can find an independent source who can quote from say Glass's guide, that would give you a bit more ammo in your argument with your insurer.

The Omsbudsman probably would expect to see some evidence to substantiate both valuations, in order to make a fair judgement, so the more evidence you have will better your negotiations.

Maybe in hindsight it would have been better to have been a bit more proactive in chasing your insurer for an agreed value. In my experience if you keep right on their back they do respond more quickly than they otherwise might do.

Ike

 

[Taffy Turner]

Ike,

Therein lies the problem. As my vehicle was a Japanese "grey" import, it isn't covered by Glass's Guide.

All the insurance company have done is to have a quick trawl around the internet to find similar vehicles, and they have paid me based on the bottom end of the range, despite agreeing that my vehicle was in exceptionally good condition.

Gary

 

[Blister]

What was the sum insured for your vehicle that was written off ??

When they asked you the value when insuring it what did you tell them ?

My point is this , If you had it insured for £7500 and they say its only worth £6000 then why did they insure it for £7500 ??

Ask the question , if they don't pay the the sum insured then surly that's receiving money under false pretences

 

[dennyk]

have you got legal insurance on your motor insurance policy??
If so ask for legal assistance, you maybe able to claim through the MIB (Motor Insurers Bureau) for uninsured losses, Did you get the Registration details of the car that hit yours?, did you get the name of any witnesses?

I am in the process of making a claim for an accident to my car, the driver of the car that hit mine drove off without stopping, I have been offered a figure for the total loss of my car from my insurers, I have refused the sum they offered, it has now gone back to the engineer for a new valuation.

The legal insurance ,have appointed a solicitor, who is pursuing the MIB for my uninsured losses,including Personal Injuries , loss of car for 16 days , that being the time I was without a car , from the day of the accident untill I bought a replacement car and the excess I had on my policy

 

[Les Mahon]

Gary,

I have had a similar experience to this in the last month and from my experience here in Ireland, you can opt not to accept the first offer, but they can also come back and offer less.

From my research into here are a few pointers:

All the insurance company have done is to have a quick trawl around the internet to find similar vehicles, and they have paid me based on the bottom end of the range, despite agreeing that my vehicle was in exceptionally good condition

In fact the process is a bit more scientific than this. they have a computer system that calculates the value of your car based on a number of factors. Firstly the depreciation, and then apparently they look at things like if you pay monthly for your insurance, if you work a fair distance from home and live in a rural area and other factors, thins gives them a picture of how quickly you will need to replace your car, and how likely you are to be able to finance a replacement yourself. If they thing you will be desperate for the money to replace the car they offer a lower amount on the basis you will need the money.

My point is this , If you had it insured for £7500 and they say its only worth £6000 then why did they insure it for £7500

No insurance company will ever pay the amount that the car is valued at, they will always assume some depriciation.

As I say, my experience is in Ireland, things may be different in the UK.

The most important thing is that you walked away! It could be alot worse.

Good luck with it
Les

 

[ike]

Quote:
My point is this , If you had it insured for £7500 and they say its only worth £6000 then why did they insure it for £7500

No insurance company will ever pay the amount that the car is valued at, they will always assume some depriciation.

Some companies will in certain circumstances accept an 'agreed value' when an insurance policy is started. This is an absolute value that they will pay in the event of total loss or being written off, regardless of normal use. I doubt though that this is an option on mainstream policies.

cheers,

Ike

 

[matt]

When you get a quote for your renewal, only send them part of the premium with a letter explaining that it's what you think the insurance is worth... :wink:

 

[Taffy Turner]

Thanks everyone for the advice.

Yes - I was under the impression that they were supposed to make an offer for the value of the vehicle, but they haven't done this, they have just sent me a cheque. They are now insisting that their valuation is fair, despite overwhelming evidence to the contrary (IMO).

I do have legal cover, so I think I will speak to the legal firm about what I can do about this.

I have the other drivers details, and they have admitted liability, so my insurance company isn't even going to be out of pocket. (The other driver is being prosecuted for careless driving, so not much room for doubt there).

Sadly, the whole experience just serves to reinforce my already rock bottom opinion of insurance companies as a bunch of scumbags who are happy to take your money, but will do everything in the book to avoid giving any back.

I will certainly not be renewing my policy with my current company, who are Jubilee by the way - part of the Lloyds of London set-up.

Regards

Gary

 

[Taffy Turner]

I am not talking about the value of the written off vehicle when I bought it three years ago.

The point I am making is that identical vehicles to the damaged one are for sale currently at up to £2000 more than the insurance company are paying me for mine. They have calculated their payment to me based on the lowest priced similar vehicles they can find, without taking into consideration the condition, despite having agreed that mine was in exceptionally good condition.

I looked on the Insurance Ombudsman's website, and they are fairly definitive in declaring that the insurance value of a write off is what you would have to pay to purchase a vehicle of similar age, mileage and condition from a dealer.

Regards

Gary

 

[ike]

Were all these other vehicles you mention also grey imports?

 

[Taffy Turner]

Were all these other vehicles you mention also grey imports?

Ike - yes.

My vehicle is only available as a grey import, as Toyota never sold a diesel version of the 4 Runner in the UK.

Mine is a Toyota Surf, which is basically a 4 Runner with a 3.0 L turbo diesel engine.

Regards

Gary

 

[Noel]

Taffy, not hard to confuse me. I've deleted my post simply because it was inaccurate concerning your problem.
Right, considering the info on the Ombudsman's site I'd send the cheque back, ask them why they did not make an offer to you for the total loss. Indicate to them that although they have decided to try and make your mind up for you, you are not satifised with their "offer" or the manner in which they processed the claim and that you've spoken to the Ombudsman. Let us know what happens.

 

[Taffy Turner]

Taffy, not hard to confuse me. I've deleted my post simply because it was inaccurate concerning your problem.
Right, considering the info on the Ombudsman's site I'd send the cheque back, ask them why they did not make an offer to you for the total loss. Indicate to them that although they have decided to try and make your mind up for you, you are not satifised with their "offer" or the manner in which they processed the claim and that you've spoken to the Ombudsman. Let us know what happens.

Thanks Noel,

That is more or less what I have done. I haven't returned the cheque, but I haven't cashed it either. I have told them that the minimum figure I am prepared to accept is £7500 (which is what I paid to obtain an equivalent replacement vehicle). I have informed the Ombudsman of what is going on, but the insurance company are still insisting that their valuation is fair. I think that they deliberately take up to 4 weeks to reply to my letters, just to try and frustrate me and hope that I will go away.

The thing that I really can't understand is why are they behaving like this, as surely it is the insurance company of the person who caused the crash who will have to fork out for both vehicles, so I can't see that they would be that bothered about trying to screw me out of £1500, as it isn't their money anyway?

Cheers

Gary

 

[mambo]

The thing that I really can't understand is why are they behaving like this, as surely it is the insurance company of the person who caused the crash who will have to fork out for both vehicles, so I can't see that they would be that bothered about trying to screw me out of £1500, as it isn't their money anyway?

Cheers

Gary

thats probably all the other insurance company will pay them for your car :?

 

[dennyk]

I maybe be wrong BUT

Are the underwriters of one insurers also the the underwriters of the other insurers.

In this time of mergers of insurance companies , does anyone know who actually underwrites the risks.

As someone who worked in the industry from 1971 to 1998 ( when I retired) I have seen the shrinkage and amalgamations in the numbers of Insurance Companies, I would be hard pressed to guess who takes on the risks

 

[Slim]

Taffy,

Get on over to http://www.consumeractiongroup.co.uk/forum/. There are lots of very knowledgable people there to help you out.

I would send them a letter giving them 14 days to pay you the difference. If they don't put in a claim through https://www.moneyclaim.gov.uk/csmco2/index.jsp, You will have your money in no time.

 

[matt]

...part of the Lloyds of London set-up.

Ahhh, that explains it. With Lloyds underwriters, it's personal. They're gambling with their own cash. Even if the money can be claimed back from the other insurers, it's still in their blood to be as difficult as possible.