Agreed Value Car Insurance Problem.

portlandboy

My 19 year old son bought a 1987 classic Mk2 Golf GTi and took out an Agreed Value insurance through Admiral. The policy was £750, but still 50% cheaper than the standard policy, so it was a big saving.

Last weekend a guy reversed into his car while he was queued at a set of traffic lights. The guy admitted responsibility, they swapped insurance details etc. and the whole thing was caught on camera. The other guy's insurance company (Hastings Direct) were initially fine, told us that their policyholder had admitted fault and said that everything would be dealt with quickly. Hastings Direct then called to arrange an 'independent' mechanic to look at the car, stating that they would decide whether to pay for the repairs or write my son's car off once the mechanic's report was completed. As soon as I mentioned that my son's car had an Agreed Value Certificate everything changed. (The repairs come to somewhere around £500 including labour, while the Agreed Value Certificate values the car at £4,000.)

From that moment, the advisor became very abrupt and flatly refused to offer any of the previously mentioned services. He stated that Hastings Direct only dealt with third party claims as a matter of courtesy and that my son would have to use his own insurance company to make the claim.

So Admiral have now arranged for a mechanic to assess the damage. They have got a claims management company involved (Auxillis) and have sent the accident details to a so-called 'independent' law firm called Admiral Law (co-incidence, I suppose?) who seem to be very keen on finding someone with an injury, but rather indifferent to anything else.

Admiral have guaranteed that my son's No Claims Bonus will not be affected, nor will his current year premium, but they will not be drawn on how this will affect his future premiums. Auxillis say that they will be able to "reclaim any out of pocket expenses resulting from the incident", yet they cannot reclaim any increase in insurance premiums for future years, even though he can make a claim at any point up to three years after the incident.

This whole thing is like a visit to the Bunco Booth. If he'd had a standard insurance policy, he'd probably be looking at a write-off payout, which would leave him out of pocket. But because he has an agreed value policy, he's going to end up out of pocket because of an increase in premium for a few years.

Anyone know whether my son can get any reimbursement for any increase in future insurance premiums which may arise from this situation please?

Thanks.

rudekid48

Agreed value or standard policy makes no difference to future premiums. He will need to declare a 'non-fault' claim when getting future quotes which may or may not affect premiums - some insurers will load, others won't.

MataNui

He may have an increased premium but a write off or repair on a standard or agreed value wont change that. It makes no difference at all.

The claim is still going to the other parties insurer, its just that you are using your insurers legal team to do it. You are more likely to end up with a repair on an agreed value policy though as it removes the wiggle room over market value that insurers like to use.

Remember that if they do decide to repair it you still have the right to choose your own repairer and dont have to use the one Hastings Direct will likely tell you to.

Mungo76

portlandboy wrote: »

Anyone know whether my son can get any reimbursement for any increase in future insurance premiums which may arise from this situation please?

Thanks.

You'll find this question asked all over these forums.

The answer is not likely. Others will give a better reply, but it works along the lines that the other party should not be penalised for the commercial decisions made by your sons choice of underwriters. If your son doesn't like the increase in premiums, they should go elsewhere. now if they can prove they have been elsewhere and they all are more expensive, they may have a case.

The other fickle issue is that premiums are not predictable, the markets harden and soften, what may go up by hundreds today could be pounds next year.

dacouch

There is nothing stopping you claiming under your Admiral policy and if the vehicle is a write off then Admiral should pay out the agreed value.

There is money to be made by Admiral for them farming you out to a claims company hence their eagerness to pass you onto other companies.