Insurance- car valuation?

oldbaby

Friends car has been written off by insurance company as its uneconomical to repair.

Insurance company has provided him with car valuation figure lower than it should be/market value?

(£800 lower than what you can get a similar model car with similar mileage etc from car dealers)

How do car insurance co. value cars? Glasses guide for cars has been mentioned here.......

Is it possible for him to challenge the insurance decision for car valuation and barter the price up by £800? or more importantly is it likely that this'll happen?

thanks for your help.

dacouch

Read this link twice as it explains how it works http://www.financial-ombudsman.org.uk/publications/technical_notes/motor-valuation.html

InsideInsurance

oldbaby wrote: »

Is it possible for him to challenge the insurance decision for car valuation and barter the price up by £800? or more importantly is it likely that this'll happen?

Its always possible to negotiate, this is done in the form of lodging a complaint about the valuation given.

Of cause you need to check if the value he is talking about is gross or net of the excess. If they have a £500 excess and this has already been deducted then what you are actually talking about is a £300 shortfall

rs65

oldbaby wrote: »

£800 lower than what you can get a similar model car with similar mileage etc from car dealers

Is that £800 between insurers offer and advertised price or what a dealer will accept? You may find the difference is less than you think.

forgotmyname

If its a £5000 car then you may get £800 off if you haggle and they have enough profit in it.

Screenprices are just a wishful number. If someone pays that figure the dealer will get a free holiday from it.

How do they get the figures, Flip a coin probably. And offer you % less hoping you accept it.
Dont forget to take any excess into account.

oldbaby

thanks for the replies.

Just to clarify the situation by way of example:

Insurance values car at £1000 (pre excess deduction, post standard £250 of excess= £750)

Market value of car from private and traders/dealers is £1800.

Thus £800 discrepancy in car valuation between insurance company and market value.

vaio

read the link in post #2, get values from the sources mentioned & take it from there