car insurance pay out

Ladymack44

I had an accident in my car and it was not my fault, The
insurance company offered me £1978 for it that i excepted, they
then send i have to get rid of it myself for scrap which
i did, so they then deducked the pay out price because i got
scrap money for it, so they will only give me £1768 for my car.
Are they aloud to do this or can somebody give me some advise
please

MrRedundant

Of course they can. Why would you expect to get the scrap value twice?

Ladymack44

I didnt expect scrap value twice, i just wanted what my car was worth as it was not my fault, and i still have things to pay out for.
I just hate it i have an accident the 3rd party admits it is his fault then to cancell my insurance on the car that i know longer have, they still want to charge me

MrRedundant

You got what its worth. You got the payout plus scrap to equal value.

Clive_Woody

ladymack44 wrote: »

I had an accident in my car and it was not my fault, The
insurance company offered me £1978 for it that i excepted, they
then send i have to get rid of it myself for scrap which
i did, so they then deducked the pay out price because i got
scrap money for it, so they will only give me £1768 for my car.
Are they aloud to do this or can somebody give me some advise
please

When they made the offer of £1978 did they state in writing that you had to dispose of the car yourself and any money you made from this would be deducted from the payout?

Otherwise if they made you an offer, and you accepted, then they told you to deal with the scrapping yourself I would have though you should be eligible for the proceeds in addition to their payout.

R3negadeuk

Yes this was allowed and fair.

Your vehicle was written off which I am guessing was a class C total loss. After the accident, your vehicle was deemed to have a salvage value of 10.6% or £210(this is reasonable imo).

An insurer has an obligation to indemnify you, this means to put you back in a similar financial position that you were before the accident, i.e. pay you 100% for 100% of you financial loss.

Your vehicle was valued at £1978, being 100%, however your car after the accident was deemed to be worth £210. So the salvage value is taken from the 100% valuation.

To think about it another way, if you would have taken the £1978 and kept the car, you would have made more money than the valuation of the vehicle. An insurer wouldn't let this happen as it is beyond their legal obligation.

Ladymack44

Clive_Woody wrote: »

When they made the offer of £1978 did they state in writing that you had to dispose of the car yourself and any money you made from this would be deducted from the payout?

Otherwise if they made you an offer, and you accepted, then they told you to deal with the scrapping yourself I would have though you should be eligible for the proceeds in addition to their payout.

Yes they offered me the price then the next day told to scrap it.

moneygoround

If the insurance company had paid you the £1978, owneership of the car would have transferred to them on payment, and they would have had the right to collect it from you (they would have paid you the full value of the car).
Collecting cars costs them money in employing drivers and admin costs, so it is cheaper for them to ask you to scrap the car fo them.
They then only owe you the difference between the salvage value and the offer.

Or, put another way, they could have paid you the £1978 and then asked you to scrap their car for them, which they now owned. The salvage value of the car should then be paid directly back to the insurance company.

Either way, you would have ended up with £1978 total, which is what you have received and is the figure you agreed that the car was worth with the insurance company.

mikey72

I would argue that as they would have incurred cost to arrange to scrap it, it makes more sense for the insurance company to scrap the car to the op, for no cost, then let the op do what they want with it.
Why should the op do it free of charge, if no money have been discussed, the insurance company shouldn't be charging later.

dacouch

I'm guessing the OP claimed directly (Or via a claims company) off the other parties Insurers

Ladymack44

dacouch wrote: »

I'm guessing the OP claimed directly (Or via a claims company) off the other parties Insurers

That is what is confussing me, iam claiming of the third party so why is my insurance so worried about it.
I still have not had the cheque yet either.