when car value goes up

quiet_man

i was involved in a minor accident and much to surprise they decided to write the car off, the value of the car was agreed it was agreed that because the car was classed as commerical that VAT would be added to the valuation if i could produce the VAT receipt. i produced the VAT reciept and was told that was fine and i would be intitled to claim the VAT as i am not VAT registered. once they examined the VAT receipt they realised that value of my car had actually increased so they are refusing to the VAT as agreed

what can i do ?

Quentin

Unless you had an agreed value policy, then the write off value should be the current (pre incident) market value.

Make sure that is the basis used for your car being valued. (The price you paid for it is irrelevant)

quiet_man

thanks thats what i said but they said that it was illigel to profit from a claim, they even said that in 99% of cases everything would have been fine but because the market value was more than i had paid they wouldnt be paying the VAT :mad: which means i am £1000 sort

contacted the finiancal ombitisman and they have raised the issue with them

BertTheRaccoon

are you at fault for the accident? If not then claim from the insurer of the other party (assuming they accept blame) as they are not going to pull any stunts about the"insured value".

BertTheRaccoon

I also think your insurers are wrong to rely on the price you paid. If you got an uber bargain which was never to be repeated, why should they not then pay the correct"market value" for the vehicle even if that is more than what you paid?

dacouch

Refer the Insurers to this which is from the Ombudsman

"We are likely to award the policyholder the full retail value, even if he/she inadvertently under-estimated the value of the vehicle when filling in the proposal form or luckily bought the vehicle for less than it was worth. And we have seen exceptional cases where a vehicle’s value genuinely rose between the date it was bought and the date of the damage/theft."

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

What sort of business is it and is the car insured in the company name or your name?

quiet_man

thanks

it was a nissian navara that i use for personal use, hence why i am not VAT reg, but i had to pay when i bought the truck and yes i did get a good deal when i bought it if i had kept in garage for 2 years instead of driving it i reckon i would have made about £3000

System

Of course cars can go up in value. I bought a Volvo 240 for £100 6 years ago, ran it for 4 years and then sold it for £300. Most of my cars go up in value.

marlot

With the drop in the pound, the prices of many imported cars have been rising. So not surprising that some used cars have also seen rises.

rs65

quiet_man wrote: »

thanks thats what i said but they said that it was illigel to profit from a claim, they even said that in 99% of cases everything would have been fine but because the market value was more than i had paid they wouldnt be paying the VAT :mad: which means i am £1000 sort

contacted the finiancal ombitisman and they have raised the issue with them

They are mixing up two things here. Paying VAT is only relevant if you are VAT registered. Your settlement should be market value (retailer).

In general it is not right to profit from a claim but some policies allow a new replacement car if a written off car is less than a year old. Technically that would mean the policyholder profits from the claim.

New for old settlement on home insurance also means that the policyholder technically profits.

If you were given the Navara, does that mean the most you could claim is £0.00? What you paid has no direct relevance to a total loss settlement.