Car Insurance Claim

Alfred7

Hi,

I have recently had a claim in on my car insurance of which the insurer has sent me a cheque to settle the claim however the settlement does not cover my existing loan. My loan is also from my car insurer.

Should I accept their first offer as I have heard that you usually get a new and improved offer if you reject the first. The insurer did not discuss a valuation. They have just sent out a cheque which I have not yet cashed.

Any advice on this matter would be greatly appreciated.

Thanks
Alfred7
:j :rotfl:

mattymoo

Normally the insurers would send the cheque to the finance company. Was the vehicle financed or did you just take out a loan. If it is the latter it would not be recorded against the vehicle and would not show up in an HPI search.

While you may be able to negotiate an increased settlement, at the end of the day it is not the insurers problem if the outstanding finance exceeds the value of the vehicle. It is up to you to find any shortfall.

iceicebaby

As mattymoo said!

Did you not take out GAP insurance to finance any shortfall ?

Alfred7

Hi,

Thanks for your replies. I took out a loan which was with the company which supplies my insurance.

I agree with the statement that it is not the insurers issue if my loan is not covered by the settlement fee. I am wondering if I could try and get the settlement increased by refusing the first offer or is that pointless?

Forgive me ignorance however what is GAP insurance?

Thanks
Alfred7

iceicebaby

Gap insurance is an extra insurance that can be taken out to pay any shortfall in circumstances like yours

mattymoo

Car valuations are arrived at using Glasses Guide and the CAP Guides. Unfortunately, you only really have access to these if you are in the motor trade. You can have a look at the Vauxhall website - there is a link on there to enable you to obtain a Glasses valuation free of charge. They do carry disclaimers though about using these for insurance valuations.

You could also look at Parkers Price Guide - available in newsagents. The motor trade call it Hans Christian Anderson 'cos they feel the values are out of kilter with the market.

Also look in Auto Trader for cars of same type / mileage / age. Ring the seller to see what he got (possibly less than the advertised price).

Use all of these and proof of Full Service History if you have it to ask for an increase in the offer. On a £10k vehicle say, you may get it increased by 3-400 which more than pays for the time spent making enquiries.

PS: - the normal process is you write / email the claims handler and explain why you feel a higher offer is justified. They then refer this back to the motor engineer who will either agree / reject or offer a compromise.

Alfred7

Hi,

Again thanks for your replies. I have written a letter to the insurance company to see if I can get them to raise the offer.

I will let you know how I get on.

Thanks
Alfred7

:T