Insurance undervaluing my campervan

uw_photographer

Hi,

My camper van was recently stolen and burned out. Finally, after a month or so, the insurance company have now agreed to pay out. The problem is that their valuation is well below what it will cost to replace with an identical model. I understand that for standard cars, the valuation is derived from Parkers, Glasses, but this is a bespoke conversion. As far as I am concerned the value is what it would take to replace my vehicle from the same (very well known) camper van manufacturer with the same model of conversion.

I feel like I have had a Rolls Royce stolen and they are basing the value on a Ford (I hope no-one is offended by the metaphor).

I took out the insurance thinking I had specialist camper van insurance.

Does anyone have any experience of how valuations for vehicles such as this are arrived at?

Would it help to get a valuation from the manufacturer?
It has been suggested that I appoint (and pay for) my own vehicle valuer. Has anyone had experience of this?

Any advice appreciated

Thanks

Charles

knightstyle

Find several similar examples for sale and forward the details to the insurance company, do not accept their valuation.

AdrianC

uw_photographer wrote: »

As far as I am concerned the value is what it would take to replace my vehicle from the same (very well known) camper van manufacturer with the same model of conversion.

That seems to suggest you expect your used campervan to be replaced by a freshly converted one. It doesn't work like that.

Your insurer is bound to pay the fair market value of your van immediately before the incident that caused the claim.

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

You and your insurer are both tied to the terms and conditions of the policy, as you agreed to them when you took the policy out. If you wanted the insurer to pay out a pre-agreed value, then agreed value policies are available, rather than market value ones.

uw_photographer

No, I do not expect a *new* vehicle, but I would expect the value to be based on a vehicle from the same converter. I took out a policy to cover a Bilbo's Celex, so I would expect the value to reflect that and not a lower quality conversion.

It seems to depend on how "market value is interpreted; it's a lot less straightforward than for a mass production vehicle. I wondered if anyone had any experience of this situation.

AdrianC

uw_photographer wrote: »

No, I do not expect a *new* vehicle, but I would expect the value to be based on a vehicle from the same converter. I took out a policy to cover a Bilbo's Celex, so I would expect the value to reflect that and not a lower quality conversion.

And so it should. One of similar age, usage and condition to the one you lost.

That doesn't, of course, mean such a vehicle actually exists. What your insurer will provide is what is deemed to be the value of yours, not a replacement. How that value is agreed is another question entirely. Did you read the FOS page I linked to earlier?

maddogb

uw_photographer wrote: »

No, I do not expect a *new* vehicle, but I would expect the value to be based on a vehicle from the same converter. I took out a policy to cover a Bilbo's Celex, so I would expect the value to reflect that and not a lower quality conversion.

It seems to depend on how "market value is interpreted; it's a lot less straightforward than for a mass production vehicle. I wondered if anyone had any experience of this situation.

You are correct here, it is down to interpretation of that term and there is a law to cover that depending on when you took out the policy, it is either the UTCC(1999) or the Consumer Rights Act 2015 which I think kicked in in August last year.
In my mind when you take out a policy and agree an excess charge it should be taken as an implied term that the excess charge is the absolute maximum loss you will be asked to suffer, any more and they should be obliged to repair.
my own opinion is that a pay out is an optional substitute for indemnity and is therefore not limited or fixed so the above legislation will be valid.
Do not let them distract you from the actual contractual side of it by too much talk with valuation, they have all the options apart from one, fair does not enter into it and they cannot get their heads round that.

bigjl

What age was the Campervan?

Which model of van was converted?

How many miles?

How much do you think it was worth?

How much did they offer?

Did you have an agreed value policy?

What value did you give when you started the current Insurance Policy?

Very expensive conversions tend to lose a lot of the money invested when doing the conversion.

Look at Ambulance Conversions.

Mercedes Sprinters that cost around £150k new are now up for (57/58 plates) £4000/5000 on eBay, even less of you go to the big Auction in Wales that specialises in them.

dannyrst

I think if you have a specialist car/vehicle like you appear to have had, this just emphasizes the importance of making sure you have an understand of what you are covered for and how much cover you have.

Like has already been said, you would have been far better specifying a value for your camper at the time you took out the policy. Yes, it may have cost a little more, but you would have found it far easier now that the worst has happened.

I hope you manage to come to a satisfactory agreement with the insurer, please keep us updated.

maddogb

dannyrst wrote: »

I think if you have a specialist car/vehicle like you appear to have had, this just emphasizes the importance of making sure you have an understand of what you are covered for and how much cover you have.

Like has already been said, you would have been far better specifying a value for your camper at the time you took out the policy. Yes, it may have cost a little more, but you would have found it far easier now that the worst has happened.

I hope you manage to come to a satisfactory agreement with the insurer, please keep us updated.

did you miss this bit of the op?


"I took out the insurance thinking I had specialist camper van insurance"


surely the question here is why he thought that?

Lord_Baltimore

You are in a negotiation with the insurer. Their first tactic is to low ball you. You need to go back with your view on things.

Somewhere between is the compromise you will both accept.

dacouch

maddogb wrote: »

did you miss this bit of the op?


"I took out the insurance thinking I had specialist camper van insurance"


surely the question here is why he thought that?

The poster is referring to an "Agreed Value" Policy, you agree the value of the vehicle when you take out cover and at each renewal. If the vehicle is written off, then the agreed value is paid out.

As Danny mentioned, sometimes these policies cost more which puts some people off from buying them