CAT D write off

peteallbut

Hi all,

General advice please. I was involved in an accident whereby I was stationary about to turn right into a side road when the driver behind me drove into the back of my vehicle. He accepted he was in the wrong as did his insurance company. I informed my insurance company although they have noted it only and my no-claims is unaffected. Everything seemed to be going okay until the other insurance company decided it was a Cat D total loss and offered me a very low settlement and told me to pick my van up from the repairer.
I have not excepted their offer. I spoke to the financial ombudsman service but as the insurance company is not mine, they will not take any complaint.
The company want to give me the lower margin of 'market value' which is nowhere near the cost of replacing the van 'like-for-like'. As the damage is only cosmetic, I thought I could just carry on using it but now it's been reported as Cat D, my insurance company won't touch it and any alternative policy will attract significantly higher premiums, which being a van are high enough as they are. Obviously the van is worth next to nothing now that the Cat D has been registered against it.
I have a replacement vehicle for the next week but this is clearly going to drag on longer than that and being a working van, I don't earn any money without it.
Do 3rd party insurance companies have everyone 'over a barrel' like this ? Why should I have to pay thousands of pounds to replace 'like-for-like' a van which they've decided to write off when none of this is my fault.
Sorry to rant, not feeling happy.

Quentin

CAT D shouldn't mean you cannot insure it.


See if a local broker (not Swinton) can help get you competitive cover


The valuation should be the market value of the vehicle immediately prior to the incident. (Though they will deduct a percentage as you are keeping the van)

peteallbut

Thanks Quentin,

I'm sure you're right about the cover, I just know that my current insurer won't do it and others will be more expensive. I also understand the 'market value' bit, it just seems to me that there exists a difference between 'market value' and the actual cost of a 'like-for-like' vehicle. A difference that will have to be borne by me. It's that element which is unfair.

Pete

Quentin

Have you tried any others? (Very few insurers even ask whether or not its a cat D write off when getting quotes)

peteallbut

I'll give it a go and see. I really wanted to sort the settlement out first and thought that if the insurance was going to be too expensive, then I might opt for the settlement and leave them the van (if that's an option). Finding out the situation with insurance and long term value as a consequence of being marked Cat D would potentially give me a bit more ammunition with which to negotiate.

forgotmyname

Stick the claim through your own insurance or an accident management company?

Or even contact their insurer and explain their offer is way too low and you will need to pass the claim onto them to get a fair deal.

Long term value? They are paying you what they think is the value of the vehicle and letting you keep it? Sounds like minor repairs are needed so you should have money in your pocket after the claim and repairs..

peteallbut

Fair comment mate, I'll have to see what they come back with and take it from there. I wanted to avoid my insurance company if i could as they would want a grand worth of excess paid, although I'd get it back later !