Non fault total loss low valuation

mark_steveo

My son had an non fault accident recently and the car has been deemed a total loss. The car was only purchased 3 months ago for £8200. They have come back with a settlement offer of £8200. I declined it and they increased it by another £200.

The issue I have is that a replacement equivalent vehicle in these crazy times is now nearer to £10000. I got a webuyanycar estimate on or car of £9500. 

If this was a non fault accident shouldn’t our insurers be representing our interests and charging the other drivers insurer the full £9500 it will take to for a like for like replacement? 

Sandtree

How much your insurers offer is totally independent as to if it is a fault or non-fault accident... the department that deals with first party losses is often a totally independent team than those who deal with the third party and they may not even know what the position on liability is (thought it may be self evident from accident circs and full third party details on file). 

leonj

Don't accept the offer, show them adverts of comparable cars and they will increase it

jimbo6977

Worth noting in the current crazy market that the settlement will reflect the value of the vehicle at the time the accident occurred. 

It is also more than possible that you and your son overpaid a bit when you bought the car. 

On a personal note, whilst my current job is no bed of roses, I'm glad I'm no longer employed settling total loss claims at the moment. 

TELLIT01

So your son is hoping to make a profit from the accident.  If he paid £8200 for the car they are obviously available at that price.  He has already been offered more than he paid for it.

Sandtree

TELLIT01 said:

So your son is hoping to make a profit from the accident.  If he paid £8200 for the car they are obviously available at that price.  He has already been offered more than he paid for it.

The argument is that in the 3 months since the purchase the vehicle has appreciated in value... there are certainly some items that do go up in price and so its not about "making a profit from the accident" but realising the profit that had already been made on paper immediately prior to the accident. 

To look at something where price does more commonly appreciate... buy a gold coin in 2016 and you'd have paid circa $1,200.. that same gold coin today would be worth $1,800. If someone steals it today are you saying they should only get $1200 because thats what they paid for it?

[Deleted User]

jimbo6977 said:

Worth noting in the current crazy market that the settlement will reflect the value of the vehicle at the time the accident occurred. 

It is also more than possible that you and your son overpaid a bit when you bought the car. 

On a personal note, whilst my current job is no bed of roses, I'm glad I'm no longer employed settling total loss claims at the moment. 

You mean underpaid. The same vehicle now sells for £1,800 more, due to brexit and pandemic related shortages.

In this case the OP needs to supply evidence of what similar vehicles sold for recently. It will still be a battle and the longer the insurance company drags it out the more the price will go up, in all probability.

Sandtree

[Deleted User] said:
It will still be a battle and the longer the insurance company drags it out the more the price will go up, in all probability.

The claim value is as at the date of loss not at the date of payment... therefore whilst prices for vehicles may continue to go up the settlement wont. 

[Deleted User]

Sandtree said:

[Deleted User] said:
It will still be a battle and the longer the insurance company drags it out the more the price will go up, in all probability.

The claim value is as at the date of loss not at the date of payment... therefore whilst prices for vehicles may continue to go up the settlement wont. 

Sure, but at the time of loss of was worth more than the OP paid for it.

If the insurance company delays I'd be looking to claim interest and maybe more due to the rapidly rising prices. Of course that assumes that the OP can't minimise their costs by buying now and waiting for the payout, which isn't possible for a lot of people. One solution is to ask for the payout and tell them you consider it an interim payment before the final amount is agreed.