Insurance theft claim low payout. I feel like I've been robbed twice! Any point appealing?

greengriff

Hi. My bike was stolen at a few months old with only a couple of hundred miles on the clock, basically brand new :-(. The new price was £21500. The insurer has offered me 17k! There are no second hand models on the market to draw price info from as it's such a new model. My policy doesn't have like for like replacement at under a year old. The insurer says I can appeal (internally with them) but that the process takes 8 weeks (so clearly designed to dissuade you from bothering). Is there any point? I suspect that with no other information they will come back with the same price anyway. Should I go straight to the ombudsman, or is that a waste of time too?  Any advice much appreciated. I thought the point of insurance was to leave you no worse off after an incident :-(

csgohan4

Do you have gap insurance if it's less than 1 year old from new? Will it cover it?

As you have mentioned no like for like replacement and nothing to compare with, so your insurer made an educated guess. But most things depreciate once it leaves the forecourt sadly. 

greengriff

I don't have gap insurance. I wouldn't complain if I could buy the same bike again for the money they are offering, but I can't.

csgohan4

greengriff said:

I don't have gap insurance. I wouldn't complain if I could buy the same bike again for the money they are offering, but I can't.

If one had an accident now, the insurance may not  cover the same car and age, it usually doesn't, this is probably due to depreciation, condition of your car e.t.c. You can try and negotiate or find evidence to back your higher valuation. I managed to haggle a few hundred quid for my old banger if your nice to them, 

TELLIT01

greengriff said:

I don't have gap insurance. I wouldn't complain if I could buy the same bike again for the money they are offering, but I can't.

I think that's a major gripe for most people regarding motor insurance.  Replacement / valuation should be like for like, not the potential trade valuation which will always be less thant the cost of replacement.  Many home insurance policies will give like for like if their preferred supplier is used as they have the buying power to reduce cost.  Motor insurers could easily do the same.

greengriff

So the general consensus would seem to be I'm stuck with their offer? Has anyone ever complained to the ombudsman and got a settlement overturned?

csgohan4

greengriff said:

So the general consensus would seem to be I'm stuck with their offer? Has anyone ever complained to the ombudsman and got a settlement overturned?

The question is, can you back up your own settlement figure? If you cannot, the ombudsman may not rule in your favor

Norman_Castle

Try the manufacturer, they may have a low mileage demonstrator. It is unfair to loose so much. Near new, low mileage vehicle sales have to accomodate buyers looking for a worthwhile discount for not buying new but you're not the same, its likely you will need to buy new again to replace what you had so an offer close to this seems appropriate. Try again but you may need to use the ombudsman.

greengriff

csgohan4 said:

greengriff said:

So the general consensus would seem to be I'm stuck with their offer? Has anyone ever complained to the ombudsman and got a settlement overturned?

The question is, can you back up your own settlement figure? If you cannot, the ombudsman may not rule in your favor

There are no second hand examples available to base a valuation on. So how did the insurer arrive at their low figure?

dunstonh

basically brand new :-(.

It ceases to be brand new and priced as such the minute you buy it.   Depreciation is at its highest in the first 12 months.

My policy doesn't have like for like replacement at under a year old.

That's a shame.  personally, I wouldn't have bought that policy for that very reason.  Its a risk when you do.

The insurer says I can appeal (internally with them) but that the process takes 8 weeks (so clearly designed to dissuade you from bothering).

That is not correct.   The complaints process is regulated and the firm is given 8 weeks to respond.  After 8 weeks you are allowed to refer it to the FOS.   It doesnt mean the firm will take 8 weeks and it is very obviously not to dissuade you from bothering.

Should I go straight to the ombudsman, or is that a waste of time too?

You cannot.  You can only go to the FOS after 8 weeks or the final response, whichever is first.

I thought the point of insurance was to leave you no worse off after an incident :-(

It is.  However, there is often disappointment in valuations and sometimes insurers will move a little if you can provide evidence of real-world pricing.  Unfortunately, you took a couple of gambles. no GAP and no year one 100% coverage.   Your choices are partly responsible for the position you are in.

Has anyone ever complained to the ombudsman and got a settlement overturned?

Yes they have.  And others haven't.   You are never going to get 100% back.   In year one, you can lose about 20% of the value. i.e. the minute the bike is registered to you and you sit on it,  you have lost around 20%.  Some brands lose more, some less (Honda's can be over 25% in year one for example).  So, what they have offered you is not too far off the average ballpark.    You need to present your case to the insurer that your valuation is more accurate than theirs.

greengriff

The policy I was quoted on initially did have like for like in year 1. I phoned up to query something and was taken through policy details on the phone and they (rather sneakily in my view) then signed me up to a different policy without me noticing. I appreciate all your points, but there's no way I can get back on the same bike with their settlement. Given that, and given that there's no second hand models to buy yet, do you (or anyone else) have any thoughts on the likelihood of success at appeal?

Can I accept their initial offer (so I can get another bike and get back on the road) and still appeal to the Ombudsman? Or once I accept an offer from them is that me losing my right to appeal?