Total loss retention value

ba_baracuss

I've had the usual low opening offer for retention of my cat N damaged car, with a retention fee taken out of that.

They've now upped the car value but also upped the retention fee. I know this goes up as the vehicle valuation goes up, but the percentage this is of the value has also increased, so they're charging a higher percentage of a higher valuation, which I think is unfair.

I've queried this and been told that's how it is, but I'm unable to find anything to inform me either way. If anybody could assist it would be much appreciated.

AdrianC

There's absolutely no guideline as to how salvage value should be calculated. It really is a take-it-or-leave-it.

ba_baracuss

Thanks for the reply.I was told they used a calculator used by all insurance companies that's verified by the ombudsman. 
As I said, they have upped the valuation, but also upped the percentage of the valuation they want to take as a retention fee.

AdrianC

Such is their prerogative.

You have three choices.
1. Accept and pay.
2. Reject and wave goodbye to the car.
3. Try and negotiate.

3 may quickly return to 1 or 2.

Post-2, you could keep an eye on copart.

ba_baracuss

So basically they are allowed to make it up as they go along and I cannot contest the retention fee that they make up to suit themselves? Can't say I'm surprised. Thanks for your replies.

KimJongUn88

They don’t have to sell the salvage to you at all. They’re doing you a favour.

Kattekwaad

I would be very careful here OP if it crossed my desk and you started haggling I would be very quick to withdraw the offer.

Interestingly I retained an old Panda (04) after it was written off the retention value was set at 9% of payout to which I was very pleasantly surprised. 

ba_baracuss

They're not doing me a favour. Insurance companies don't do anybody a favour. It's not really a salvage anyway, it's a minor scrape cat N which they agreed to repair and then reneged on once the repair centre had collected it. 
They are obliged to give me a fair price so probably not a good idea for them to withdraw the offer. They want 27% of my value, hence I'm not very happy. 9% sounds very nice in comparison.

Anthony147

ba_baracuss said:

They're not doing me a favour. Insurance companies don't do anybody a favour. It's not really a salvage anyway, it's a minor scrape cat N which they agreed to repair and then reneged on once the repair centre had collected it. 
They are obliged to give me a fair price so probably not a good idea for them to withdraw the offer. They want 27% of my value, hence I'm not very happy. 9% sounds very nice in comparison.

They are obliged to give you a fair settlement for your total loss claim.
Anything else is up to them and how they want to do business - It’s not an entitlement and probably a good idea to deal with them as such. It stopped being your car once the claim was agreed and settled.

ba_baracuss

Anthony147 said:

ba_baracuss said:

They're not doing me a favour. Insurance companies don't do anybody a favour. It's not really a salvage anyway, it's a minor scrape cat N which they agreed to repair and then reneged on once the repair centre had collected it. 
They are obliged to give me a fair price so probably not a good idea for them to withdraw the offer. They want 27% of my value, hence I'm not very happy. 9% sounds very nice in comparison.

They are obliged to give you a fair settlement for your total loss claim.
Anything else is up to them and how they want to do business - It’s not an entitlement and probably a good idea to deal with them as such. It stopped being your car once the claim was agreed and settled.

Nothing has been agreed or settled. It's my car. But thanks.

AdrianC

ba_baracuss said:

They're not doing me a favour. Insurance companies don't do anybody a favour. It's not really a salvage anyway, it's a minor scrape cat N which they agreed to repair and then reneged on once the repair centre had collected it.

Exactly.

On inspection, they've decided to write it off, because they've deemed it not worthy of repair. The damage is not structural (hence Cat N).
They are paying you the full pre-collision market value of the car, and they are taking ownership of it.

That's what a write-off is. And your policy Ts & Cs gave them the right to decide when you submitted the claim form.

You would have had more flexibility if you were claiming off the other party and they had admitted liability, but you chose to claim from your insurer.

They are obliged to give me a fair price

They are obliged to give you the fair market value of the car, yes. Are you suggesting they aren't?
They are not obliged to give you the right to retain the salvage - and, even if they choose to give you that option, they are not obliged to do so for any set %age.

...so probably not a good idea for them to withdraw the offer. They want 27% of my value, hence I'm not very happy. 9% sounds very nice in comparison.

I'm sure it does. But that's not on the table. Maybe you can talk them into it... Good luck. More likely is that they'll just shrug, say "OK, then", and it'll go to copart.

ba_baracuss said:

Nothing has been agreed or settled. It's my car. But thanks.

You may wish to read the Ts & Cs of your policy about that.