Car - total loss

tommytynan123

When assessing a car as a ''total loss'' should the insurance company give you a choice of keeping the vehicle in return for a reduced payout (as part of the negotiation) or is it something you have to ask about.
Thanks

forgotmyname

Depends on the condition of the vehicle. Does it have major structural damage that would make any repair unsafe?

Are you claiming from your insurer or a 3rd party insurer?

tommytynan123

forgotmyname wrote: »

Depends on the condition of the vehicle. Does it have major structural damage that would make any repair unsafe?

Are you claiming from your insurer or a 3rd party insurer?

major structural damage - yes
Claiming from own insurer.

forgotmyname

I doubt they will let you keep it then.

Aretnap

It will be assessed as Category A, B, C or D depending on the amount of damage it's suffered. Major structural damage which would be difficult or impossible to repair safely will put it into category A or B and the code of conduct will require the insurer to scrap it and ensure that it doesn't end up back on the roads with a bodged repair job. Less serious damage will put it into Category C or D, which would mean the insurer might agree to sell you the salvage back if you ask - but they don't have to.

InsideInsurance

tommytynan123 wrote: »

When assessing a car as a ''total loss'' should the insurance company give you a choice of keeping the vehicle in return for a reduced payout (as part of the negotiation) or is it something you have to ask about.
Thanks

They dont have to but you are free to ask. As has been said before, itll depend what category of TL its been deemed -C,D or the very rare E then its simply a question of economics and so its an option. A or B its a matter of safety and highly unlikely unless you happen to have an appropriate breakers license.

You will also need to check with them, if they do allow you to retain it, what tests they will want done on it to allow it back on the road and continue cover.

vaio

http://www.financial-ombudsman.org.uk/publications/technical_notes/motor-valuation.html has something on salvage, s16 seems to lean towards saying that if the punter asks then the insurer should allow it.

...When a vehicle is “written off”, the insurer becomes the owner of the salvage once the consumer accepts payment of the full market value. If the consumer asks to keep the salvage, the insurer is entitled to deduct what it would have been able to sell the salvage for – though this is usually not very much.......

and

.......If we think that the policyholder was unfairly deprived of the salvage, we may tell the insurer to pay compensation for any financial loss or distress and inconvenience we think the consumer has experienced.......

Quentin

That s16 refers to cases where the insurer disposes of the vehicle prior to agreeing a settlement.

The policy holder doesn't have any "right" to keep the salvage once a settlement has been agreed.

(Things are different when you are negotiating with a third party insurer when you can buy back the salvage.)

vaio

Certainly paragraphs 2 & 3 of s16 deal with premature disposal of salvage ie before settlement has been agreed

I'm less sure about para 1 & 4 I quoted above, certainly they would include premature disposal but if they *only* apply in that case then they don't make sense.

I agree that there is no "legal right" but, as is often the case, the FOS goes beyond the strict letter of the law and looks at fairness and, if the policy holder wants the salvage then provided it doesn't cost the insurer anything then I'd say it's fair that the punter should have it. Reading para 1 & 4 from this viewpoint and they do make sense

OnanTheBarbarian

The reason insurers are a pain with salvage, especially when claiming from your own insurer, is that they get such excellent rates through the national salvage operators, it offsets the misery of the total loss payment.

When the punter wants to keep their car, they make it as awkward as possible and will often have a silly high salvage figure attached to the car, far higher than you would get as a private punter trying to sell the salvage yourself. So in many cases it makes retaining the salvage a non-starter because of what you end up with for your total loss payment after the salvage, excess and outstanding premiums have been deducted.

If you are claiming against the other party's insurer, get an independent engineer to inspect as they put much more realistic salvage values on and the third party insurer if often not as bothered about retaining salvage as they incur recovery fees etc getting the car from you.

Best advice if it is a non-fault claim and the car looks to be a write off, is get the car recovered home and insist it is inspected there.

vaio

OnanTheBarbarian wrote: »

.....When the punter wants to keep their car, they make it as awkward as possible and will often have a silly high salvage figure attached to the car.......

Best advice if it is a non-fault claim and the car looks to be a write off, is get the car recovered home and insist it is inspected there.

I'd say that's good advice whoever you are claiming off, the harder it is for them to get the salvage physically away from you the more likely you are to be able to retain it.

Having it inspected at home also means you can meet the assessor and maybe negotiate a cash in lieu payment so it doesn't get officially written off.