Car written off and cheque received for less than expected

Angelcrackers

Hi

A few weeks ago we had our first ever car accident. Luckily witnesses were there and it's been agreed we were without fault. My insurance company directed us to an accident management company to handle the claim.
It's all taken forever but two weeks ago they called to say the car was being written off and we were being offered the derisory amount of £2000. We tried to argue this was not enough (the insurance company were taking our premiums based on a £3000 value.

I was told to send evidence of similar more expensive cars and the engineer would review and call me to discuss. Two weeks later I was called my the claims people to say the engineer had emailed back to say he can only go to £2100.

When the cheque arrived it was for £1750, it seems the claims company have deducted salvage? Is this right? My insurance say the car has no salvage value as a Cat B write off. However the claims company said if we agree to them dispossess get of the car they will get us the £250 salvage and forward this on. Is this normal practice? They are requesting V5 and MOT certificate. Does this mean they are going to try and sell it on for more money?

Also I pointed out that the engineer had said he values it at £2100, so why aren't we now being given the extra £100? On querying this I'm being told the claims people require me to send a letter saying we accept this cheque as an interim payment and then they will use the revised valuation to ask the third party insurer for the extra £100.


If this is legit then fine but it all sounds dodgy to me.

SeanG79

What is your insurance excess? £350 wouldn't be unheard of...

agrinnall

£2100 - £1750 = £350, so it's even more likely to be excess.

Angelcrackers

No the claims handler's letter says £2000 less salvage value £250. This cheque is still based on the original valuation. The exact wording is

"The vehicle is declared a total loss with a pre-accident market value of £2000 less £250 for the salvage. The cheque needs to be accepted on an interim basis so once this is banked, if you are still disputing the valuation. If the value is raised the amended engineer report will be sent to the third party asking them to raise the additional funds"

So my issues are - why are they taking off the salvage value off of the original valuation?

As we already know there has been a revised valuation why aren't they automatically going ahead with an appeal for the extra funds?

Angelcrackers

I was told as the third party admitted liability I would not have to pay excess.

Quentin

From what you say your claim hasn't been handled by your insurer so you have not had to pay your excess.

Contact the claim handler and point out that they have made a mistake over the missing £100!

Angelcrackers

I will do, thank you. What about this £250 salvage deduction.

Quentin

It's usually to your advantage. You keep the car and can do what you want with it. (Sell it for spares/get its scrap value etc)

Angelcrackers

But they are keeping my car, that's the bit I don't understand. They have taken the car AND are taking off £250 for salvage, so it seems a lose/lose for me?

Quentin

In that case get on to the claim handler and point out you aren't getting any salvage and they should pursue this for you. You should get the settlement in full with no deductions at all

sheramber

It is normal to send the V5, but retain the yellow slip, to the insurance company who will deal with scrapping the car.

However, you need to advise DVLA that the vehicle is being scrapped.

The claims company are saying once the scrap merchant pays them for the car they will pass it onto you.

They need the V5 to scrap the car so are not paying you until the car is scrapped.

See this link for process.

https://www.gov.uk/scrapped-and-written-off-vehicles/insurance-writeoffs