Do I have to accept Market Value on my total loss?

Haventgotaclue

I'm wondering if someone could help me please.
I was involved in an accident last week, my insurance has made me an offer today as my car is a total loss.
I'm wondering if I have to accept their offer or if I can refuse it. Although my car is old (17 years) it was in good condition and had low mileage. I can't see how I can possibly buy anything similar with the offer they have made.
Thank you in advance for any advice.

BeenThroughItAll

Yes, basically. If you wanted an agre value, you'd need an agre value policy. Otherwise it's market value in accordance with FOS guidance.

You are of course welcome to refuse the offer and ask for more, for as long as you can be bothered, or take them to court.

I imagine Maddogb will be along shortly to level accusations of corruption at the UK insurance industry.

fiisch

Look at private ads (ignore trade ads) for similar cars of similar mileage/condition/model. If the average price is higher than what you're being offered, screenshot the ads and send to the insurer.


If not, they're unlikely to up their offer. The principle of indemnity that insurance is founded on is that you should be placed in the same financial position immediately prior to the loss i.e.: the settlement should be sufficient for you to go out and buy another car of similar mileage/condition.


Obviously, if the accident was your fault, any settlement will be less your excess amount.

glentoran99

fiisch wrote: »

Look at private ads (ignore trade ads) for similar cars of similar mileage/condition/model. If the average price is higher than what you're being offered, screenshot the ads and send to the insurer.


If not, they're unlikely to up their offer. The principle of indemnity that insurance is founded on is that you should be placed in the same financial position immediately prior to the loss i.e.: the settlement should be sufficient for you to go out and buy another car of similar mileage/condition.


Obviously, if the accident was your fault, any settlement will be less your excess amount.

why ignore trade ads? Surely trade would normally sell for more strengthen your case for a larger payout?

Haventgotaclue

The accident wasn't my fault, but contact hasn't started yet with the 3rd party insurance, they said it could take another 2 weeks before I hear anything on that side.

Aretnap

If you're not happy with the value they offer you can argue the toss. If they won't budge, or if you're still not happy, you can make a formal complaint (the procedure should be set out in your policy documents) - and if you're still not satisfied with their response you can escalate your complaint to the Financial Ombudsman.

For guidance on how the insurer should be valuing the car, see the Ombudsman's notes here

https://web.archive.org/web/20150320001942/http://www.financial-ombudsman.org.uk/publications/technical_notes/motor-valuation.html

(The link is to an old version as the current website has removed much of the information in an attempt to be more "down with the kids")

The insurer should give you enough to buy a replacement car at a reputable dealer (less your excess, which you can reclaim from the third party's insurer assuming the third party was at fault). However note that the ombudsman does not usually consider adverts for similar cars to be good evidence of a car's value. The fact that someone advertises a car for (say) £2000 doesn't mean that it will sell for £2000 - he might accept less, or it might sit on the forecourt attracting no interest until he readvertises it for £1500. So the trade guides, which are based on actual selling prices, generally carry much more weight. It's likely that your insurer is using one of the trade guides to come up with its valuation - if so the Ombudaman is unlikely to intervene unless other trade guides show a significantly higher figure.

If your car was in unusually good condition for a car of its age that's something you might use to argue for a higher figure - but you have to be realistic about just what difference it makes with a car that old, and also be able to show evidence of its condition. Everyone claims that their car is in supurb condition, not many people can produce an engineer's report to say so. And if it's just the fact that you haven't had any problems with it lately that doesn't mean much.. A 17 year old car won't have needed major work recently more or less by definition - if it had it would have been scrapped.

Afraid the bottom line is that a 17 year old car ain't going to be worth much, and you'll need to be realistic about that.

caprikid1

Having been in this place with old cars before....


If you have no other injuries and are not claiming for anything other than the car then ask for a "Full and final settlement" and ask for the value you believe your car is plus the inconvenience hassle amount.


They will probably settle quite quickly, faced with hire costs , whiplash etc etc . Always easiest to have with the third party once liability is accepted though. I have used this method a few times to great success.
It is important to remember that a full and final, closes the case and you cannot come back for more !

debtdebt

Try going directly to the third party insurers if you're sure you aren't at fault.

Marvel1

caprikid1 wrote: »

Having been in this place with old cars before....


If you have no other injuries and are not claiming for anything other than the car then ask for a "Full and final settlement" and ask for the value you believe your car is plus the inconvenience hassle amount.


They will probably settle quite quickly, faced with hire costs , whiplash etc etc . Always easiest to have with the third party once liability is accepted though. I have used this method a few times to great success.
It is important to remember that a full and final, closes the case and you cannot come back for more !

:eek: how many accidents have you been in

Norman_Castle

What car is it? What are they offering and what do you expect?

A 17 year old car is likely to be written off even for minor damage. If the car can be made roadworthy cheaply keeping the salvage and repairing it yourself possibly ignoring cosmetic damage could be a good option.

caprikid1

cjdavies wrote: »

:eek: how many accidents have you been in

I drive old cars that I wish to keep that are hard to value.... hence the more unusual way of negotiating claims.


In the event of any accident I want my cars repaired if its safe to do so.


I have had two accidents in the last 10 years a driver pulled out of a side turning which despite best attempts to avoid caused Wing and door damage .


Second was someone ran into the back at a roundabout, unable to out brake a capri !!! No excuse for that !! I expect dosey *** was on her mobile.