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Advice Needed - Insurance Write Off (Modified)
Comments
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You've said your policy covers you for...I had expected the insurance offer to be fair due to the value of modifications. However, they have offered only the market value of the car.
That's unequivocal. The policy you bought covers you for the MARKET value of your car. What it would have sold for, immediately before the collision.The most we will pay will be either:
* the market value of your vehicle (including its accessories and modifications), immediately before the loss; up to the value shown on your schedule;
* the cost of repairing your vehicle; whichever is less.Agreed, the modifications from my view should not increase the value of the car.
So if your policy offers "market value", then what they've offered is what you agreed to when you bought the policy. If you wanted an agreed value policy, that's what you should have bought.
That may be what you think the purpose was, but I suspect the real purpose was to get you an acceptable premium for a car that mainstream insurers won't cover.The whole purpose of taking the modified policy was to protect the value of the modifications.
"Valued" by who?We're talking a car with a value of £3000 and modifications valued at £10,000
...clearly not by you.Sure I wouldn't expect 10k for the modifications now...0 -
You've said your policy covers you for...
That's unequivocal. The policy you bought covers you for the MARKET value of your car. What it would have sold for, immediately before the collision.
So if your policy offers "market value", then what they've offered is what you agreed to when you bought the policy. If you wanted an agreed value policy, that's what you should have bought.
That may be what you think the purpose was, but I suspect the real purpose was to get you an acceptable premium for a car that mainstream insurers won't cover.
"Valued" by who?
...clearly not by you.
Ok points taken (Though I now question as to whether this policy was ever sold to me correctly).
Putting that aside, this still doesn't justify an offer for £2900. The market value of a vehicle without modifications, same base spec, mileage and condition is roughly £3.5k.
How would you determine the market value of the car including its modifications and accessories? As it's rather unique...
Clearly this is going to be a hard lesson...0 -
(Though I now question as to whether this policy was ever sold to me correctly).
You had 14 days after receipt of the paperwork to decide that this policy was not what you wanted, and cancel it without penalty.Putting that aside, this still doesn't justify an offer for £2900. The market value of a vehicle without modifications, same base spec, mileage and condition is roughly £3.5k.
Yes, and?
It's entirely possible that the modifications would reduce the market value, compared to an unmodified similar vehicle.How would you determine the market value of the car including its modifications and accessories? As it's rather unique...
Find comparisons to demonstrate your case.
If you can't come to an agreement with the insurer, then take it to the financial ombudsman.
If you can't come to an agreement with the ombudsman, then take it to court.0 -
When speaking to the repair company it became clear that they hadn't identified any modifications which has leaded to the decision of total loss. (I don't know how they missed them as its fairly obvious).
The car is currently on its way to a salvage yard. The insurance company told me that it would be assessed here before an offer was given. (I don't believe that has happened as I have an offer of £2,900).
Again the insurance company is well aware of the modifications. I have sent receipts over.
£14,000
So you havn't spoken to Flux or ERS to establish whether their offer takes into account the value of the miodifications.
You need to speak to them and get a definate answer.
They generally have reps on social media and forums such as Piston Heads and owners clubs forums. You may find it helpful to ask them on there for their help (Insurers don't like negative posts on forums so try and sort them out)0 -
That's the $64000 dollar question! As above it's in theory the price that the car would have sold for just before the accident, which is potentially very different from what it would cost to buy a normal spec car, then carry out all of the modifications again. Modifications may have very little effect on the selling price, or even reduce it. It's possible, for example, to spend quite a lot of money putting on really horrible spoilers and body kit and be left with a car nobody but you would want to buy and which would therefore have very little value. (Not saying that's what your car was like, just offering it as a slightly extreme example)How would you determine the market value of the car including its modifications and accessories? As it's rather unique...
Valuing a car which is heavily modified to the point of being unique is always going to be more of an art than a science, but I'd suggest a starting point might be to look at each of the individual modifications and consider what impact they would have on the value were they the only mods. That should be easy enough to measure. The trade guides may have some notes on the impacts of some of the mods; if there are mods which aren't covered by the guides then that might be one of the situations where adverts for similar vehicles might be the best available evidence of value. See the FinancialOmbudsman's comments on vehichle valuation ]for some pointers. http://www.financial-ombudsman.org.uk/publications/technical_notes/motor-valuation-case-studies.html#d0 -
Market value = the value of a standard car of similar age mileage and condition. minus the cost of refitting standard parts to replace parts that you thought improvements but the next owner thinking they are liabilities that ruined the car?
Modified vehicles are generally to the owners taste and can be difficult to sell. I belong to several forums and not unknown for cars that have had a lot of work done to be part exchanged for little money because it didnt' sell.
Nobody wanted to pay an inflated price for a car with mods that they didnt want. Earlier this year i was on a dual carriageway and spotted a VW passat travelling really slowly. As i got closer it became clear why. It had been dropped so low the suspension just didnt work. It was bounce bounce bounce from every ripple in the road.Censorship Reigns Supreme in Troll City...0 -
I'm in need of some insurance advice. To a cut long story short. I have a modified vehicle which is insured under a modified insurance policy.
Unfortunately recently the car was involved in an accident. The insurance company have decided the car is a write-off. As its beyond economical repair. As a result I have declared the car as written off with the DVLA and have paid the fee for my private plate to be removed.
I had expected the insurance offer to be fair due to the value of modifications. However, they have offered only the market value of the car. From conversations with the repair garage it appears that the modifications were missed from the assessment of the vehicle. Even though the insurance company are well aware that my policy is a 'Modified' specialist policy with declared modifications in almost all categories.
Of course I want to argue to value of the modifications. However I'm now concerned that by doing this the decision of write off could be reversed? and the car repaired. (The cost of the modifications are higher than the market value of the car and likely also the repair cost).
What is the likelihood of this? Are these generally considered a value enhancer or a separate entity.
Right now I would rather accept a payment than take the car back. And after seeing the car wedged in amongst a pile of scrap cars, unlocked with the windows open I am even more hesitant to want to accept the car back.
When purchasing the car I had bought a GAP insurance policy which would increase the payout, however after reviewing I believe this is now void due to the modifications.
If you wanted "market value" including the mods, you would needed to have had an agreed sum insurance policy.
Personally, i'd buy it back and repair it if you've spent that much time and effort on it.0 -
Absolutely. If the cost of the mods was £10,000 and the value you've been given is £2900 then it would seem to be a good deal financially to get the car backPersonally, i'd buy it back and repair it if you've spent that much time and effort on it.Remember the saying: if it looks too good to be true it almost certainly is.0 -
Can you tell us the Car and the sort of mods that came to £10,000.
Obviously Paint is very marmite. Engine mods might be unattractive for other buyers as it could shorted the life of the vehicle / make the car difficult to insure.
Sounds like buy back is the best option.0 -
"From conversations with the repair garage it appears that the modifications were missed from the assessment of the vehicle.£
What I am surprised about is I thought it would be normal for you to provide a full list of all the modifications to the broker prior to the policy taking place.
It is also common that your insurer would send policy through with the list of mods ? It sounds to me you were probably happy when half the mods were missed and enjoyed a lower premium.
You have effectively been driving uninsured.0
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