Rights to keep own vehicle after insurance write-off? - Equity Red Star

bikerguy

Hi,

I recently had an accident on my motorbike, and had to claim on my fully comp insurance since I rode into the back of another vehicle.

The insurance company (Equity Red Star) sent an engineer who has declared my bike to be a Category C write-off, since the cost to repair exceeds the value of the motorbike.

I've told the insurance company that I would like to keep the vehicle and pay them the salvage value, but they've said it's their policy not to let vehicle owners keep the vehicle after a write-off as salvage. I still have the motorbike in my possession, keys & V5 document, so it still belongs to me at the moment. They have also used the excuse that there is a (small) dent in the fuel tank, so for safety reasons (apparently) I'm not allowed to keep it!

It would be easy for me to repair the damage (new radiator and fuel tank), and keep the vehicle on the road since I'm not too bothered about the cosmetic damage - I'll probably drop it again anyway!

Is the insurance company allowed to demand that I hand the vehicle over to them, without offering me the option to pay a salvage value in order to keep the vehicle? I really want to keep my pride and joy!

lisyloo

How much is your excess?
How much is the loss of NCD going to cost you?
How much is the claim going to cost you on all motoring policies (incuding car) over the next 3 years in the way of increased premiums?
How much will it cost you to get the bike back on the road?

I dinged a wheel recently. New one cost £700.
I looked at making a claim, but the excess plus the increased premiums for the next 3 years on our car policy, plus my bike policy, plus my husband's bike policy (3 policys * 3 years) means it was not worthwhile claiming.

I straightened the wheel for £80 and didn't claim.

Have you done the above calculations?

I know this doesn't help you now, but you should do this before claiming and before your bike deing declared a write-off (I'm not scolding, meant to be useful info for lurkers xx)

You can see the different a claim can make to your premiums by simply doing a quote without the claim and then with the claim and of course adjusting the NCD is necessary. On many systems you can edit quotes these days, so it doesn't take too long.

I don't know if you can "undo" the write-off declararion, so you might not have the option now.

bikerguy

Thanks lisyloo. Since another vehicle as involved, the third party has made a claim on my insurance for damage to their vehicle, so it appears I had no choice but to claim.

lisyloo

Ah I see.
That changes things from just your own damage as the other person MAY decide to claim for a personal injury in the next 3 years. So absolutely right to go through insurance.

I don't believe you have a right to buy your vehicle back if you agree to a settlement.
Some insurers pass them onto salvage companies and won't get into negotiation, others will.

You do have the right to get your own quotes and you do not have to use the insurers approved repairers, so perhaps this is a route you can pursue to dispute their decision.
What I'm not sure of is whether a write-off decision is irrevocable.
For example if it's been decalred with the DVLA whether it's now too late to remove it.

Annisele

The Financial Ombudsman Service's technical note on motor insurance suggests that an insured can opt to keep his salvaged vehicle (less the salvage value of the thing) - see section 16 of the link.

raskazz

Just ask to speak to a claims supervisor. If the bike was too dangerous to be returned to the road then it would not have been classified as category C. But bear in mind that if you do not repair all the damage then you will struggle to get insurance for anything other than third party only cover.

evenstar2009

Hi bikerguy - my comment relates to my car but i guess the principal is the same, someone went into the back of my car, it was badly damaged but roadworthy and the insurance company said it was a write-off and offered me £1300 which was enough to buy a replacement rubbish car which i didn't want to do so i negotiated with the insurance company bod and pointed out the savinf they'd make if they didnt have the hassle of scrapping the vehicle themselves and to take the salvage cost (which was £150) off the £1300 and they went for it.

Worth a try!

lisyloo

If the bike was too dangerous to be returned to the road then it would not have been classified as category C. But bear in mind that if you do not repair all the damage then you will struggle to get insurance for anything other than third party only cover.

It's worth pointing out here to non-bikers, that some bikers may keep a bike for track use only (or off-road use).