Low valuation after insurance write off

Beatle_Ray

Dear All,

Need some help/guidance please. The wife wrote off the car last week, insured with Tescos who told us Friday it was an insurance write off, fine, do not dispute that, however today they have said the valuation is at £5200, less the voluntary excess of £600 so they are going to give us £4600 for it. An identical car is on sale on Autotrader for circ £8500 to £9000. The insurance is fully comp and my understanding is that it should be market value, and market value should enable us to buy the same model and make of car to replace, is that correct. At the moment Tescos are offering us about half its value. I have also checked the price out on Glases guide.

How do i stand?

Thanks

Ray

kai666

Car insurance will only payout what the car was worth on the day of the accident. It wont pay what it cost when you bought it.

are you looking at the cost of cars of the same age as you had, or new cars?

victor2

You may have to negotiate with the insurers. They won't pay more than the market value of the same car/age/mileage, including the excess. But if you have the current value from something like glasses, they might adjust their offer in your favour.

Beatle_Ray

I'm looking at cars of the same age, make and model, its almost 1/2 price of what it costs to replace. Thats the bit i do not understand. How can i replicate the car that has been written off with £4600 for which they are offering when an identical model to the one that has been written off is currently on sale for a minimum of £8500 presently. I appreciate i'm not looking at the cost of what it was when i bought it, it has to be market value.

mikey72

Have a look at

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

find out the value of your car, write and refuse the offer, tell them you will accept £x, (whatever the car valuation works out at before any excess). Advise them if they do not settle in accordance with the previous ruling, you will refer the complaint to the FOS.

They usually back down very quickly, and pay you a fair price.

richard734

I would politely point out that you have found X cars on autotrader, and parkers, whatcar & Glass'es used/good condition valuations for £xxx that you think that they valuation should be revisited as you had full service history, mint condition etc etc.
Put it in writing (proper writing, not Email).
Fair market value is not necasseraly full/top price. More like the average condition private sale.
If yours had high mileage, looked like it had never been cleaned (inside or out) no service history etc, they will mark the value down.
Not accusing you of anything, but trying to explain where they get the prices from.

I just PX'd my old car - books at £900px, suggested retail £1400, dealer has put it out front for £2400 - I know he will sell it to teh first person to offer £1500 - just to give you an idea on how much teh prices on Autotrader etc can be inflated.

Notmyrealname

Beatle_Ray wrote: »

The insurance is fully comp and my understanding is that it should be market value, and market value should enable us to buy the same model and make of car to replace, is that correct.

No it is not. It isn't just the same make and model but the same condition. So if yours has a few battle scars or hasn't been maintained well or has a fair few miles on, the valuation you get will be lower.

Take the car I've just bought. There were three basic prices at dealers..

3 years old, full main dealer history, 24,000 miles: £9,500
2 years old, full service history, 40,000 miles: £8700
3 years old, full main dealer service history, 90,000 miles: £5500.

The second one, even though a year newer had above average mileage so was worth less than the first. The last one had very high mileage on so even though it was in the same condition as the other two it was worth considerably less.

And as has been mentioned, there's usually a fair gap between what it is advertised for and what it'll sell for. What you need to do is get hold of the prices for the car from Glasses or Parkers. Find out the trade value and the dealer value and a realistic one for yours assuming its not much over 12,000 miles per year and is in good condition will be the mid point between the two.

richard734

Mikey72 - Thanked already but what a brilliant link!!

http://www.financial-ombudsman.org.u...valuation.html

blue_haddock

What vehicle was it that was written off?

mikey72

Ignore the advice on private sale prices.

Go with exactly what the FOS have said.

Look at the guides, put in the A1, or retail price, in from Parkers or Glass's if you can get a figure.

Hopefully that'll be over the Autotrader prices, and let you find another decent one.

Good luck.

colino

Unfortunately low-balling seems standard practice when settling claims. Don't accept the first offer and don't accept the excuse that people aren't honest about their cars condition so they assume the worst. They take an insurance premium from you for an average car, nowhere in the proposal does it ask for photographic eveidence or details of actual condition.