Cash in Lieu question.

Mizzy_2

I just found recently about 'cash in lieu' option.The insurance approved engineer has inspected the vehicle and gave me quote of the damage. But the amount is half of what an independant engineer quoted me and Toyota has quoted me. I've a written report for the independant engineer and even showed the insrance approved engineer the letter. Eventhough I disagreed with the amount, the insurance approved engineer said the only other option is get the car repaired through his garage. I'm going make a complaint and eventually will have to write to FOS. So my question is what is 'cash in lieu' exactly and has anyone any advice. My car is not written off. And do you need to invoice the insurance company later?
Thanks in advance.

s_b

i assume this guy works for the bodyshop owned by insurer
boy could i recite some tails from these places
chips anyone?
cant answer your question,never heard of cash in lieu ? is he saying take it to another bodyshop and insurer will only pay x?
another case of internet insurance cheap until you claim shambles?
maybe
sorry
pass

scheming_gypsy

i'm guessing that cash in lieu is just getting the money instead of having it repaired; but if the insurance approved garage is cheaper than Toyota or the other garage you went to... you won't be getting the money for them to fix it, you'll be getting the cash value of what the insurance approved garage say it'll cost.

Mizzy_2

Yes the guy is from the insurance approved bodyshop, not sure if the insurance owns it. What I don't understand is that my car still needs to be repaired and I remember the engineer saying one part doesn't need doing if it was him. I don't much about motoring but I feel like he is trying to rip me off lol. Either way if it doest work out, I'll get it repaired through Totoya which costs them highest. And I wont renew the insurance with them neither.

Road_Hog

Mizzy wrote: »

Yes the guy is from the insurance approved bodyshop, not sure if the insurance owns it. What I don't understand is that my car still needs to be repaired and I remember the engineer saying one part doesn't need doing if it was him. I don't much about motoring but I feel like he is trying to rip me off lol. Either way if it doest work out, I'll get it repaired through Totoya which costs them highest. And I wont renew the insurance with them neither.

It won't cost them the highest, because they won't pay for it. The insurance company only has a duty to put the car back into the position it was before the accident. They do not have to pay for a garage of your choice, unless this is stipulated in your insurance and if it was, I doubt that they would be arguing it out with you now, they would be saying, give us the details of the garage you send it to so that we can organise payment.

Unless, you've kept some key facts back or not explained it well, the situation is, you appear to have paid out/got independent quotes. The insurance estimator has come out and assessed the vehicle damage and worked out what they will have to pay their 'in house' repairers to do the repair.

What he is offering, is to have it done 'in house' or give you the cash equivalent and YOU can pay the extra to have it done where you want. The cash option is there, because it means less administration costs, no quibbling over the quality of the repair or guarantee and they know a lot of people will say yes, take the cash and spend it on something else, whilst telling themselves they'll get it repaired at a later date.

Mizzy_2

Road_Hog wrote: »

It won't cost them the highest, because they won't pay for it. The insurance company only has a duty to put the car back into the position it was before the accident. They do not have to pay for a garage of your choice, unless this is stipulated in your insurance and if it was, I doubt that they would be arguing it out with you now, they would be saying, give us the details of the garage you send it to so that we can organise payment.

Unless, you've kept some key facts back or not explained it well, the situation is, you appear to have paid out/got independent quotes. The insurance estimator has come out and assessed the vehicle damage and worked out what they will have to pay their 'in house' repairers to do the repair.

What he is offering, is to have it done 'in house' or give you the cash equivalent and YOU can pay the extra to have it done where you want. The cash option is there, because it means less administration costs, no quibbling over the quality of the repair or guarantee and they know a lot of people will say yes, take the cash and spend it on something else, whilst telling themselves they'll get it repaired at a later date.

Thanks very much for the informative post. The injury solicitors exactly paid for the independant engineer and that how I got the written quote.

InsideInsurance

Is this your insurance companies engineers or the third party insurer's engineer?

If it is the TPI then you cannot complain to the FOS as you are not a customer of theirs.

Cash in lieu is just that, a cash settlement rather than having the repairs done. It is ultimately a negotiated figure between you and the insurer (or via your solicitors if you have them involved and its the TPI thats inspected it) but typically it excludes VAT and an additional amount off to encourage you to go through the repairers.

Mizzy_2

InsideInsurance wrote: »

Is this your insurance companies engineers or the third party insurer's engineer?

If it is the TPI then you cannot complain to the FOS as you are not a customer of theirs.

Cash in lieu is just that, a cash settlement rather than having the repairs done. It is ultimately a negotiated figure between you and the insurer (or via your solicitors if you have them involved and its the TPI thats inspected it) but typically it excludes VAT and an additional amount off to encourage you to go through the repairers.

Thanks for the info
The independant engineer (TechReports) was through my injury solicitors but not appointed through the insurance company. The case is closed now and blame given to me. I wanted to wait for the repair till the outcome. Just recently the insurance engineer came out make an estimate. But the cash in lieu doesn't seem worth it minus the excess. I thought it suppused to cover the cost of the parts and labour atleast.