Advice Request - Victim of Non-Fault Accident

SampleX

Please help...

I need advice.

I’m a private hire driver and operator licensed under my local authority.

My car is my business and has a vast amount of investment beyond its market value.

I have a specialist private hire insurance policy.

At the beginning of December I was hit in the side by an inexperienced driver engaged in a dangerous and unlawful maneuver. Photographs establish clear liability.

However, my insurers assigned claim management firm have tossed around for a month and done nearly nothing for me. I didn’t get a rental vehicle until the 27th. They’ve just told me they’re writing my 2010 7 seat full size top spec MPV off and are paying me £3000.

This is going to put me out of business.

They’ve told me the money will buy me an identical vehicle.

First, it won’t. Cheapest identical spec at identical age I can find on average is £7k.

Second, my local authority won’t licence a vehicle over 4 years of age. Cheapest equivalent 4 year old 7 seat full size MPV for my airport transfer business is around £13k plus about £500 licensing fees...

This driver’s actions have literally put me out of business at my expense, and my insurer doesn’t give a toss... they’re stuck on trying to fast track me into accepting £3k plus whatever they can claim for a mild neck/shoulder discomfort. They’re reluctant to even talk to me about loss of earnings.

Surely I have a right as the victim of a non-fault to expect to be restored to full working capacity before this driver’s stupid actions?

Can you advise me, please?

AndyMc.....

SampleX wrote: »

Please help...

I need advice.

I’m a private hire driver and operator licensed under my local authority.

My car is my business and has a vast amount of investment beyond its market value.

I have a specialist private hire insurance policy.

At the beginning of December I was hit in the side by an inexperienced driver engaged in a dangerous and unlawful maneuver. Photographs establish clear liability.

However, my insurers assigned claim management firm have tossed around for a month and done nearly nothing for me. I didn’t get a rental vehicle until the 27th. They’ve just told me they’re writing my 2010 7 seat full size top spec MPV off and are paying me £3000.

This is going to put me out of business.

They’ve told me the money will buy me an identical vehicle.

First, it won’t. Cheapest identical spec at identical age I can find on average is £7k.

Second, my local authority won’t licence a vehicle over 4 years of age. Cheapest equivalent 4 year old 7 seat full size MPV for my airport transfer business is around £13k plus about £500 licensing fees...

This driver’s actions have literally put me out of business at my expense, and my insurer doesn’t give a toss... they’re stuck on trying to fast track me into accepting £3k plus whatever they can claim for a mild neck/shoulder discomfort. They’re reluctant to even talk to me about loss of earnings.

Surely I have a right as the victim of a non-fault to expect to be restored to full working capacity before this driver’s stupid actions?

Can you advise me, please?

What was the pre accident value of your car?

angrycrow

You are entitled to the market value of your vehicle at the time of the accident and reasonable costs to return you to your pre accident position. Being registered as a taxi with likely sky high mileage will mean a lower market value than other non taxi vehicles with lower mileage.

You can claim the fees of registering a replacement vehicle with the licencing authority.

If your authority will not allow a car over 4 years old how were you able to register the old car.

This is not your insurers it is the accident management company who's only interest is maximising their extortionate credit hire claim.

EdGasketTheSecond

You could dismiss the 'claims company' and handle it yourself. Starting with claiming all your costs, expenses and a like for like replacement directly from the third party assuming liability is not disputed and you have the name and address of the TP. You write them a letter before action giving 7 or 14 days to pay before you commence legal action. They should pass that on to their insurers and hopefully you will get some action and a better deal.

unholyangel

angrycrow wrote: »

If your authority will not allow a car over 4 years old how were you able to register the old car.

It only needs to be under that age when it is first registered. Once its registered its fine.

As for the OP, the accident hasn't put you out of business because surely being a private hire driver in a 9 year old car, you realised a lot of cabs require replacement even before that age and had been saving up for some years in expectation of that future business expense?

As for your loss of earnings, it can be difficult to quantify given you'll unlikely have any sort of proof. Also, there are companies who specialise in renting plated vehicles on a weekly basis so that might have been an option for you that would have given you proof of loss as well as limiting the impact on your income.

SampleX

The car was licensed when it was four. It is now eight.

I can’t go buy a grossly undervalued direct same age eight year old replacement and go to work with it. Licencing won’t licence it because it isn’t four.

It’s a system.

You get on it at the right time and stay on it, if you keep the car in impeccable order, until it’s up to ten years old.

But at first licensing it must be four or less.

SampleX

Oh... and “companies renting licensed vehicles.”

No kidding.

And charging a king’s ransom for it.

My insurance had replacement vehicle cover.

It took them 3 weeks to deliver one. And now they want to throw me £3k and take it back.

And yes... I am out of business...

My cheap, crap tip top fully licensd vehicle has been written off by an idiot and will cost me a minimum of £13k (a year’s earnings) to replace.

But cheers for the in depth analysis on the way I run my life and business.

Oh... to live in your Fisher Price world where everything is so easy and so....binary.

Herzlos

Sure the charge a kings ransom for them, because it's a bit of a niche. The idea is to hire one and have the other party foot the cost, it's what their insurance is for. It presumably costs less than twiddling your thumbs until you get back on the road.



How much would it cost to repair the damage? Is it structural or cosmetic? Would you have any additional hoops to go through to get it back in use under license?


What was it worth before the accident?


If you were 2 years from having to replace it, what was your plan regarding replacement?


Can you buy another car that's already licensed?

unholyangel

SampleX wrote: »

I’ll disagree with you that there’s a one size fits all reasonable expectation that all licensed private hire businesses are the same or that all drivers should have a pot of gold contingency plan expecting to replace 9 year old cars. Many districts allow vehicles up to 15 years or more with no mileage limit. The councils that are responsible strenuously examne the vehicles in ways that make an MOT look like a multipl choice exam with only one question and one option.

...

I have an odd problem with the idea that insurance companies and dangerous drivers have the right to not only destroy your property but then determine the value they think they should pay you for your loss based on a metric that has no realistic relation to the specific nature of the item in question and it’s function.

...

And I’m more than a little depressed at the snarkish attitude that somehow a professional driver should have made a mint, have a fleet of cars as a contingency just in case some dumb cow t-bones them, and next to no sympathy or kind spiritedness, like somehow we deserve it...

I am not talking about what the council would accept. I am talking about decades experience of the industry making me fully aware that cars can fail much sooner than 9 years (18 months is the shortest I've known for mechanical issues.....6 days for an accident!) and often do. That same experience tells me that most seasoned drivers tend to be well aware of this and plan for it in advance or lease cars from new/nearly new (there are some that are just bad with money).

Your vehicle could have failed its next "hackney" or broken down needing major repairs and where would you be? In the exact same position as now (having to rent/lease or otherwise find £13000 for a replacement) but without the prospect of any settlement offer or recovering losses.

As for determining what should be paid for your loss...you haven't lost a newer replacement vehicle. To give you something of greater value that you never owned instead of the value of what you did own would be betterment and be penal in nature against the wrongdoer. Criminal law is penal, but the purpose of civil law is not to punish the wrongdoer but restitution of the injured party (or as near as money can achieve it).

I understand why you think I'm being snarky but thats not the way its intended. If you rely so heavily on your income (as most drivers do) then you can't afford to be off the road. I was just trying to highlight how important that is for drivers to consider.

AdrianC

SampleX wrote: »

They’ve just told me they’re writing my 2010 7 seat full size top spec MPV off and are paying me £3000.

This is going to put me out of business.

They’ve told me the money will buy me an identical vehicle.

First, it won’t. Cheapest identical spec at identical age I can find on average is £7k.

Second, my local authority won’t licence a vehicle over 4 years of age. Cheapest equivalent 4 year old 7 seat full size MPV for my airport transfer business is around £13k plus about £500 licensing fees...

That's hardly the insurer's fault, though.

What do the terms and conditions of your policy say about what they'll pay in the event of a total loss?
If it just says "pays market value", then that's probably not the right policy for your needs, given that "market value" is not sufficient to buy you a vehicle you can bring into use.

Surely I have a right as the victim of a non-fault to expect to be restored to full working capacity before this driver’s stupid actions?

No, you have the right to have the market value of your vehicle paid.

Your insurer think that's £3k.
You think that's £7k.
Somehow, I suspect that your old one - with substantial ex-taxi history - was considerably higher mileage than the one you're looking at to replace it. Adjust the value of yours to reflect that history and mileage.
But you can argue between you on that with the Financial Ombudsman refereeing.
https://www.financial-ombudsman.org.uk/publications/technical_notes/motor-insurance.html

You say that your policy includes a replacement car, but it took too long. What do the policy Ts & Cs say about the timescale for supply?

The element of betterment - to upgrade from an 8yo to a 4yo vehicle - is not within the scope of a normal policy, but an appropriate policy for your needs would probably have the option of that (at extra premium) to help you get working again asap.

If £13k really is "a year's earnings", then your business wasn't viable anyway. Full-time minimum wage is £16,280 now, going up to £17,070 in April.

Ectophile

SampleX wrote: »

Can you advise me, please?

Stop moaning at us. Moan at the claims management company. Make a formal complaint if you don't think they are handling it properly.


You're entitled to the actual value of your vehicle. If you don't like the offer, reject it. But, realistically, the value of an extremely high mileage vehicle will be less than you would like it to be.


You are entitled to claim any other losses than have an actual monetary value. This could include loss of earnings, the cost of getting another vehicle licenced, and so on. Don't take "no" for an answer. The only caveat is that you have to make some effort to minimize those losses.