Car insurance write off value more than settlement figure!

ac88 · 23 February 2017 at 10:03PM

Hello all,

I recently bought a new car, after 8 days, a wreckless driver has ran into me and drove off - no reg plate.

The insurance company want to write the car off - something i am strongly against as it can be repaired. And the cost is under 60% however they are adding repair items which take the repair value in excess of 60% of the value of the car.

The settlement figure for the car is £19.5k however i paid for a Parkers valuation who value the car at £22.5k.

So my question is, if the car is written off, the insurance company will be paid the settlement figure of £19.5k but what about the remaining value of the entire £22.5k.

I got the car for a great price in a great deal hence the price difference between the settlement figure and the actual value of the car.

So confused!

ossie · 23 February 2017 at 10:19PM

The Insurance company do not get the settlement figure you do! They are the ones out £19.5k. Is the settlement figure what you paid for the car? You cannot expect to make a profit.

ac88 · 23 February 2017 at 10:24PM

Thank you for the reply ossie, i would rather they fix the car - but thats a different topic.

The car is on a PCP and so the outstanding finance is £19.5k. However i understand the car payout is valued using a valuation tool, similar to parkers etc.

The settlement figure is 19.5k but the current market value of the car is 22.5k .. so what would happen to the 3k difference?

bris · 23 February 2017 at 10:25PM

There is no 22.5k value. Parkers are not insurance approved, they are a consumer guide. There will be no profit in it for you if that's what you are thinking. You don't actually own the car the finance company do, they are the ones getting settled.

Cars are easily written off, it's not just repairs. Storage fees, car hire etc are all taken into consideration when deciding to write off a car or not. A car can be off the roads for months, that alone costs a lot of money.

The insurer writes it off and sells the car as salvage, this gets them a lot of cash back so they take this all into consideration when deciding if repairing is viable or not.

ac88 · 23 February 2017 at 10:30PM

The current car is at a garage of my choice, so no storage costs and no car hire.

The insurance company use a site called Glass (similar to Parkers) to make a valuation, it can be used to add optional extras on the car ... which in this case led to the above price.

The insurance company have the same sort of value for the car £22.5k and so i was a bit confused as to what happens when the settlement figure of 19.5k is paid. I guess that means the remaining 3k difference is written off.

i would rather they repair the car as i got a really good deal on the car and i know i wont come close to this again.

waamo · 23 February 2017 at 10:50PM

Am I reading it right that you've only had the car 8 days? Normally if you've had the car for less than a month they give you what you paid for it.

ac88 · 23 February 2017 at 11:12PM

The incident happened 8 days in and the claim which is now on going would take me into my upcoming 4th week of ownership

Ps is there any tips to try and not get a car written off? i would really prefer it to be repaired.

waamo · 23 February 2017 at 11:17PM

The insurance company will probably give you the option of either paying out on it or you keeping it with a small pay out towards repairs.

It certainly won't hurt to discuss options with them.

ac88 · 23 February 2017 at 11:18PM

Thank you waamo, i will look through all options tomorrow morning.

bris · 23 February 2017 at 11:55PM

Finance company get the final say and they will not want it repaired.

Glass is the industry bible, Parkers is nothing like it and a consumer guide only.

ac88 · 23 February 2017 at 11:59PM

Thanks Bris. If the GLASS valuation is higher than the settlement figure what happens?

Car insurance write off value more than settlement figure!

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