How do insurance write offs work?

Obukit

Thanks for your reply. Should it make any difference previously being a cat D write off? They said they want to see prices of other cat D write offs to compare but I think this is impossible and inconsequential for a "banger".

Brooker_Dave

Obukit wrote: »

Right, update time. The insurance company has come back and offered us £290. They say they have lowered the valuation because the car was a category D write off in 2008.

They're having a laugh, that's the scrap value of the car.

I assume you're still driving their hire car?

The longer this goes on the more it will cost them.

Tell them you'd accept £600.

dacouch

Obulkit, assuming you did not know the car had previously been written off when you bought it then the Insurer should pay you the market value of the car ignoring the vehicle is a previous write off. Please read the following passage and link for the full details.

You need to quote this passage to your Insurer and advise them to revise their valuation accordingly


"14. vehicles previously "written-off" and then repaired

Most buyers are (rightly or wrongly) put off by the knowledge that a vehicle was previously "written-off", no matter how well it was later repaired – and this can affect its value.

If the policyholder knew the vehicle was a repaired write-off, he/she is likely to have paid less for it. So we are likely to decide that it is not unfair for the insurer to make an appropriate deduction – not more than 20%, unless the insurer can provide good independent evidence for a higher deduction.

But if we are satisfied that the policyholder innocently bought (and insured) the vehicle in complete ignorance of its history, and the repairs were not obviously noticeable, he/she is likely to have paid full price (and a full insurance premium) for it. So we are likely to decide that it would be unfair for the insurer to pay less than the full market value."

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

This passage was in the link Mikey posted on the first page and advised you to read the whole of it

Obukit

Thanks. I had read it but forgot that (very important!) bit.

Their insurance say they want to pay me the £290 and take the hire car back, then negotiate after. Is it possible to refuse and tell them I am keeping the car until they pay me enough to get a replacement? Money is tight at the moment and I don't want to lose a bargaining chip if I can help it .

dacouch

Unfortunately their Insurers do not have to abide by the Ombudsman's rules as your own Insurers would, however it's generally regarded as best practice although plenty will ignore it when they are dealing with a third party.

Which Insurer is it

mikey72

Who's made the offer?
You said initially you were claiming off your own insurer, or have you claimed directly from the third parties insurer?

Obukit

I was originally claiming off my insurer (Tesco) but their insurer (Hastings Direct) called and said it would be quicker to deal with them directly as they didn't dispute liability and therefore Tescos wouldn't have to act as a "man in the middle". I'm not sure if I was naive to agree to this but it seemed to make sense at the time.

s_b

que hastings direct gob man coming forward
am i missing something here because hastings direct are certainly getting some on here lately and i had a laid back attitude to them but its changing and changing quickly

dacouch

s_b wrote: »

que hastings direct gob man coming forward
am i missing something here because hastings direct are certainly getting some on here lately and i had a laid back attitude to them but its changing and changing quickly

They've always been cheap and not cheerful, their social media bod must have a full time job posting the same message across the tinternet.

Obukit

Thank you all for your advice. I sent them an email saying a expanded version of "Play fair or I will complain to the Financial Ombudsman" and they are going to get back to me with a revised offer.

To be fair to Hastings the staff all seem very friendly but obviously being an insurance company they are tighter than a gnat's chuff .