Insurance companies writing off classic car

[Deleted User]

Hintza wrote: »

Think we are all assuming a couple of months at most, hope it is not too much longer...lol

About three weeks !!!!!

dacouch

[quote=[Deleted User];33681485]About three weeks !!!!![/QUOTE]

In that case you should find this from the Ombudsman helpful...

"9. vehicles recently purchased second-hand

If the policyholder only recently bought his car second-hand, we are likely to assume that the price paid was the market value, unless the insurer can provide sufficient evidence to the contrary."

http://www.financial-ombudsman.org.uk/publications/technical_notes/motor-valuation.html

Bear in mind that your own Insurer should abide by the Ombudsman's guidance / rulings, however if you go through the other drivers Insurance for the claim they are not normally obliged to abide by the Ombudsman's guidance / rulings

[Deleted User]

dacouch wrote: »

In that case you should find this from the Ombudsman helpful...

"9. vehicles recently purchased second-hand

If the policyholder only recently bought his car second-hand, we are likely to assume that the price paid was the market value, unless the insurer can provide sufficient evidence to the contrary."

http://www.financial-ombudsman.org.uk/publications/technical_notes/motor-valuation.html

Bear in mind that your own Insurer should abide by the Ombudsman's guidance / rulings, however if you go through the other drivers Insurance for the claim they are not normally obliged to abide by the Ombudsman's guidance / rulings

Very interesting. These guidelines from the ombudsman seem to rule out the need for special or guaranteed value insurance. Basically says that whatever the vehicle is worth is what they have to pay out.

None of this lowest trade value nonsense...

vaio

yep, but if the insurance companies can get away with only paying mug punters trade value in 50% of the cases (just look at some of the doom & gloom posts on this thread) then they come out winners.

Agreed value does have it’s uses, what if you’d owned the mini from new? It would be a lot harder to come to a market value then. Agreed value does away with the need to argue about market value.

JimmyTheWig

[quote=[Deleted User];33648145]But what if I had third party only policy - which I'm entitled to do?

If someone runs into the back of me, my policy doesnt even come into effect here.[/QUOTE]
I would guess that if you had it ensured fully comp with an agreed value then the third party would pay out the market value and your insurance company would cough up the difference.
If you were third party only then only the first of these payouts would happen.
I stress that the above is only a guess.

I also think that you may have a problem because when you signed your insurance documents you agreed something like that you car was worth "£3500, not exceeding market value". In other words you agreed that it was worth market value. Given that insurance companies exchange information with each other I think you'll be hard-pressed to argue with another insurance company that it is worth more than that.

Hopefully, in any case, you can get it repaired for at least not much more than the payout you get. Doesn't sound like £3k damage.

As to the car getting a "black mark" due to it being economically written off, I don't think that's much of a problem in terms of its resale value.
The chances are you will be selling to someone who knows their stuff. It's not the sort of car that some random punter will be interested in. So your buyer will understand that it is worth more than its market value.
As long as you keep the receipts for the work you have done then I think you'll be fine.

vaio

No, the insurance company are never going to pay out more than market value.

The question then becomes how that value is arrived at. In this case the market value is what it sold for 3 weeks ago, for more bread & butter cars it might be by reference to trade price guides, in the case of unique cars it will be by discussion among experts.

All agreed value insurance does is agree the market value at the beginning of the policy rather than when a claim is made.

In all cases the at fault party will pay the whole cost.

[Deleted User]

vaio wrote: »

yep, but if the insurance companies can get away with only paying mug punters trade value in 50% of the cases (just look at some of the doom & gloom posts on this thread) then they come out winners.

Agreed value does have it’s uses, what if you’d owned the mini from new? It would be a lot harder to come to a market value then. Agreed value does away with the need to argue about market value.

I can Agreed value prevents any arguing.

I must admit I always thought if your car was written off you were at the mercy of the insurers bottom book prices. From what the FOS say, you should get the actual decent price for it.

[Deleted User]

JimmyTheWig wrote: »

I would guess that if you had it ensured fully comp with an agreed value then the third party would pay out the market value and your insurance company would cough up the difference.
If you were third party only then only the first of these payouts would happen.
I stress that the above is only a guess.

I also think that you may have a problem because when you signed your insurance documents you agreed something like that you car was worth "£3500, not exceeding market value". In other words you agreed that it was worth market value. Given that insurance companies exchange information with each other I think you'll be hard-pressed to argue with another insurance company that it is worth more than that.

Hopefully, in any case, you can get it repaired for at least not much more than the payout you get. Doesn't sound like £3k damage.

As to the car getting a "black mark" due to it being economically written off, I don't think that's much of a problem in terms of its resale value.
The chances are you will be selling to someone who knows their stuff. It's not the sort of car that some random punter will be interested in. So your buyer will understand that it is worth more than its market value.
As long as you keep the receipts for the work you have done then I think you'll be fine.

Apparently, cost of repairs is £2000. How I dont know!!!!

From the FOS guidelines, I should be OK for it to be repaired since I paid £3600 for it about three weeks ago...

[Deleted User]

vaio wrote: »

No, the insurance company are never going to pay out more than market value.

The question then becomes how that value is arrived at. In this case the market value is what it sold for 3 weeks ago, for more bread & butter cars it might be by reference to trade price guides, in the case of unique cars it will be by discussion among experts.

All agreed value insurance does is agree the market value at the beginning of the policy rather than when a claim is made.

In all cases the at fault party will pay the whole cost.

Yeh. So it seems.

That FOS document is an interesting read though. Wish I'd know than when my other car was written off a few years ago...

Norman_Castle

Before it is repaired take loads of pictures of the damage.When you sell it if there are questions about the accident it would be better to show low speed car park damage than high speed rear end damage.
Its also worth keeping all details of the damage and repair for future reference.