Car Write Off - Written off before

Di_B

All,

Looking for some advice.

My OH has just written off his car. The insurance have paid out, but reduced their payout by 30% because the car has (apparantly) been written off before.

My OH did not know this when he purchased the car and therefore had not told the insurance company about it.

Is this level of reduction allowed/normal?

I don't know a lot about these things and I want to make sure we get what we are entitled to.

OH is also getting a lot of nagging for not doing a proper vehicle check! (Although this was before we were together...)

Thanks for any advice

Jack_Regan

If a write off is worth 30% less then why should they pay book price?

GwylimT

Good on you for the nagging! I'm not sure about the insurance issue, I do know that he was supposed to declare if the car was written off and I should think if they wanted to they could void his insurance.A right off simply wont be worth same the same as a car that hasn't been previously written off, so he is likely getting the market price as his car will be worth much less than the equivalent that hasn't been written off.

Di_B

I didn't state they should pay us book price at all.
I wondered if 30% was normal. Or 10% or 90%. I don't know which is why I am asking?
Does this need to be in their T&C's? Is it standard T&C's?

We genuinely did not know.
I guess the insurance company didn't check when we took out the policy either.

If there is a possibility of voiding the insurance, I guess we got off lightly?
Needless to say, I'll be with him buying a new (but older) car!

Also, they want paying for the insurance policy in full. Is this normal? If my OH were to purchase another car tomorrow, can that not be on the same insurance?
I have been fortunate in never writing off a car (yet!) so genuine advice appreciated :-)

fivetide

Depends what category. If it was a Cat C then it should be noted somewhere on the log book I think. Cat D, bit easier but depending on age/miles/model etc it will affect the price a fair bit I'd have thought.

Not really too much to go on here OP I'm afraid.

Jack_Regan

Yes, your other half bought a year's insurance now there is a claim so they want their money.

dacouch

Refer your Insurer to this from the Ombudsman (Assuming you genuinely were not aware it had previously been written off).

"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."

Take the time to read the whole link as you will find other parts useful.

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

You may find the claims handler is not aware of the above as many are not that well trained, be polite and explain it to them. If this does not work ask to speak to a senior member of staff.

If they still stick to their guns post back here for further info.

P.S I would also (Politely) mention how section 15 could also apply to the claim if they continue "unreasonably delaying" the correct settlement of the claim...

dacouch

GwylimT wrote: »

Good on you for the nagging! I'm not sure about the insurance issue, I do know that he was supposed to declare if the car was written off and I should think if they wanted to they could void his insurance.A right off simply wont be worth same the same as a car that hasn't been previously written off, so he is likely getting the market price as his car will be worth much less than the equivalent that hasn't been written off.

They could only void the OP's policy if they asked a CLEAR question about it being previously written off and they would not have insured it had they been aware it had been a write off.

The only company I know who operate the above is Swift

Hintza

This is such a load of nonsense (but I can understand some companies might do it).

The insurer has access to the database at the time you insure the car so it would be a little disingenuous to void the insurance at a later date when they had the information themselves.

So my point is the insurer should have stated when the policy was taken out that any claims for a write off would have x% deduction.

vaio

dacouch wrote: »

They could only void the OP's policy if they asked a CLEAR question about it being previously written off and they would not have insured it had they been aware it had been a write off.

The only company I know who operate the above is Swift

Surely even if they did ask then not disclosing an unknown cat D status would be "innocent" (so they would still have to pay) rather than "inadvertent" (which would allow them to avoid if they wouldn't have offered cover initially)?

....Customers act in good faith if their non-disclosure is made innocently. This may happen because the question is unclear or ambiguous, or because the relevant information is not something that they should reasonably know. In these cases, the insurer will not be able to "avoid" the contract and (subject to the policy terms and conditions) should pay the claim in full.....

......Where there has been inadvertent non-disclosure or misrepresentation, we expect insurers to rewrite the insurance. This should be done on the terms they would originally have offered if they had been aware of all the information. In some cases this may result in a proportionate payment; in others it may result in no payment at all. This is because the inadvertently-withheld information would, if disclosed, have led to the firm declining the application altogether.....

Di_B

Thankyou so much!

After contacting the insurance in writing, they have imediately agreed to pay the £250+ that they had held back.
This means my OH can actually afford to buy his own car without me subbing him!

P.S. New car is already checked for previous write offs!!

Thank you so much. It's a big difference for us. Very happy :-)

dacouch wrote: »

Refer your Insurer to this from the Ombudsman (Assuming you genuinely were not aware it had previously been written off).

"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."

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