Car insurance write off value more than settlement figure!

mije1983

How much did you pay for the car? If it was only £19500 then you won't get more than that no matter what a valuation says.

dacouch

bris wrote: »

There is no 22.5k value. Parkers are not insurance approved, they are a consumer guide. There will be no profit in it for you if that's what you are thinking. You don't actually own the car the finance company do, they are the ones getting settled.

Parkers are one of the guides Insurers are expected to refer to value a car

dacouch

mije1983 wrote: »

How much did you pay for the car? If it was only £19500 then you won't get more than that no matter what a valuation says.

This is an alternative fact

dacouch

How much did you pay for the car, that is the minimum amount your Insurer are obliged to pay for such a recently purchased vehicle

Nearlyold

In answer to the OP's question - If the insurance payout is higher than the settlement figure the customer gets the difference (the OP has apparently financed about 100% of the vehicle but other customers might only have 50% of the vehicle financed at outset), if the insurance payout is lower than the settlement figure the customer makes up the difference.

What the insurer's payout is likely to be is a different matter.

TadleyBaggie

Surely there was a sizeable deposit put down on the car when the PCP was taken out? So the total price paid to the dealer would be PCP + deposit, i.e. close to the higher figure that the OP is seeing. So if the insurance payout was above the PCP settlement figure, what the OP would be getting back is their original deposit.

verityboo

TadleyBaggie wrote: »

Surely there was a sizeable deposit put down on the car when the PCP was taken out? So the total price paid to the dealer would be PCP + deposit, i.e. close to the higher figure that the OP is seeing. So if the insurance payout was above the PCP settlement figure, what the OP would be getting back is their original deposit.

Have to agree. With the normal small to medium size deposit (up to say 20%) the buyer is immediately in negative equity. Positive equity starts only after perhaps two to two and a half years. To have £3K positive equity on a car (worth approx £20k) would only happen if a whopping deposit had been put down. Hopefully the OP should get some of that back after the finance has been paid off

ac88

The deposit was very small at only £500. With remaining settlement figure of £19500.


This is where I am confused as current value of car is almost 3k more.

naedanger

ac88 wrote: »

The deposit was very small at only £500. With remaining settlement figure of £19500.


This is where I am confused as current value of car is almost 3k more.

Is it your insurer or the other party's insurer that is to pay? If it is the other party's then you should be claiming the amount needed to leave you no worse off after the accident.

The insurer should pay out the value needed to replace the car with an identical one. In practice there will be no identical car (I am assuming your car was bought second hand) and so the valuation is subject to negotiation. They will start with the valuation placed on it by Glass's guide, but as the name suggests it is only a guide. The actual value would depend on your car's exact condition, where it was to be bought etc.

They may also argue that as you bought the car only a few days previously then the price you paid is the true value. But you can argue otherwise e.g. if you can show you got a good deal (on the car and/or finance deal) that you cannot be expected to replicate etc.

If you are unhappy with the value then send the insurer a written complaint (stating it is a complaint) and take it from there.

If it is the other party's insurer you can demand they cover any other losses e.g. check with your insurance company to see if your premium will rise because of this accident (which can happen even if you ncd is unaltered) and claim for any future increases as a result of this accident.

Hopefully you can reach a valuation both you and the insurer believe is reasonable. (Or that the insurer agrees to repair the car - but this may require the finance company's agreement.) Any excess of the claim over the settlement figure should be paid to you.

Remember it is a negotiation. You can complain if you dispute their proposal.

ac88

Thank you Naedanger.


It was a hit and run and so I have been left with the mess to clean up. (claim comes under my name)


The car was second hand, bought from an Audi dealership. I did get a brilliant deal on the car and having looked at Autotrader I cannot find anything that comes close to the sort of value I received.


This is why I would prefer they repair the car, as if paying out for the car, I am worried I wont be able to replicate such a deal again.

naedanger wrote: »

Is it your insurer or the other party's insurer that is to pay? If it is the other party's then you should be claiming the amount needed to leave you no worse off after the accident.

The insurer should pay out the value needed to replace the car with an identical one. In practice there will be no identical car (I am assuming your car was bought second hand) and so the valuation is subject to negotiation. They will start with the valuation placed on it by Glass's guide, but as the name suggests it is only a guide. The actual value would depend on your car's exact condition, where it was to be bought etc.

They may also argue that as you bought the car only a few days previously then the price you paid is the true value. But you can argue otherwise e.g. if you can show you got a good deal (on the car and/or finance deal) that you cannot be expected to replicate etc.

If you are unhappy with the value then send the insurer a written complaint (stating it is a complaint) and take it from there.

If it is the other party's insurer you can demand they cover any other losses e.g. check with your insurance company to see if your premium will rise because of this accident (which can happen even if you ncd is unaltered) and claim for any future increases as a result of this accident.

Hopefully you can reach a valuation both you and the insurer believe is reasonable. (Or that the insurer agrees to repair the car - but this may require the finance company's agreement.) Any excess of the claim over the settlement figure should be paid to you.

Remember it is a negotiation. You can complain if you dispute their proposal.