Car Total Loss

figface

I would be grateful for any helpful advice for my parents about how they should proceed in the following circumstances as they seem to be walking blindly into a nasty insurance trap.

Whilst my brother has been abroad, my father has been driving his Grand Cherokee Jeep. Last week he had a minor collision and slightly dented the front wing and and plastic front bumper. Naively, my father decided to put in a claim on his insurance. The insurers told my father to drive it to a specified garage. A few days later the insurance company called my father and told him the car was a total write-off. They said that although only cosmetic damage, it would cost over 1000 pounds to put right and that the jeep was worth no more than 2000 pounds! Although just over 10 years old, the jeep has been properly serviced every year, is kept in lovely condition and and has reasonably low mileage. When they questioned the low value put on the car the insurers flippantly replied no one wants a 4x4 anymore, and especially not a Jeep so its worth 2000 maximum.

My parents were shocked and panicked that the insurers were about to write off the Jeep which was my brother's pride and joy, and that as the insurers had valued it so low any pay-out wouldnt cover a fraction of the cost towards a new one, so they decided that they would simply withdraw their claim and pay for the repairs themselves.

So they duly went ahead, phoned the insurance company and said we will withdraw our claim and do the repairs ourselves assuming this would be the end of the matter. They had already spoken to the local garage who told them it wouldnt be too difficult for them to make it look pretty again. But! Having withdrawn the claim, the representative of the insurance company (speaking to them from a call centre in India) said...'OK but we will still go ahead and mark down the vehicle as a Total Loss and it is now uninsured. You must now get it repaired at your expense, then must get it checked, MOTed and then pass a VIC check before you will be able to get insurance for the vehicle and drive it again.'

So it seems now the insurance company have well and truly stuffed them. They have withdrawn their claim, so the company wont pay them a penny for repairs, but at the same time the insurers will go ahead and mark the car as a Total Loss.

Can the insurers still write-off a car when a claim has been withdrawn? Is there any way my parents can fight all this? It is obvious they have handled this badly, but the important thing now is how they should proceed? Any clear advice about how they can make the best from this mess would be gratefully received!

Many Thanks!

Quentin

They may as well reinstate the claim, then buy the car off them as salvage and get the £2000 (less excess) settlement and use that to repair it and get it back on the road.