Car Write Off-Settlement Shortfall Recovery

tonymc

Hi,

Apologies if a similar post has been created previously but tried searching without any success.

Following an accident, my daughters car looks as if it will be a write off, although this has yet to be confirmed by the insurers and we do not have a valuation as yet.

However, having checked the cost to purchase the exact same make/model/year of car, it looks as if it may be significantly more than the value shown on the policy. As she has legal cover, would it be possible for her to claim for the insurance payment "shortfall" through this cover? The policy booklet is less than helpful on this!!!

Any advice gratefully received.

Many thanks.

TadleyBaggie

Claim off who? Maybe if a there is 3rd party who have admitted responsibility. 

Legal cover isn't for finance shortfalls, that is what GAP insurance is for.

Sandtree

Most insurers state that the vehicle is insured to "market value" and so in theory there is no shortfall... potentially just a disagreement on what market value is.

If you have bought one of the minority of policies that cover for the lesser of market value and stated value then potentially any short fall could be claimed from the third party assuming it was a non-fault collision. LE cover may respond subject to any clauses on cost effectiveness/ effort -v- reward

400ixl

Ignore the value on the policy, it was just a guide at the time of taking out the policy to see if it needed referring to an underwriter for pricing.

Until you see what the insurer is prepared to make as its opening offer you have no idea if there is a shortfall.

The insurance is designed to put you back into a similar position to where you were before the claim. So if you want to get prepared then find similar cars (same Make, Model, specification, mileage etc) that are for sale today and download the adverts. They should be matching the going rate for a similar vehicle in the general retail market, they don't have to be matching top end main dealer prices, neither should you be expected to accept bottom end private sale prices.

plumpplop

Sorry to hijack the thread but we are currently awaiting contact from the insurers about the write off value our car.  We have been unable to view an exact replacement of our car in RL as it is quite rare.  Also was in imaculate conditon for age and mileage.  We've seen some quite scrappy looking ones.  We understand, but yet to be confirmed, that they wish to recover the car from our home before they discuss a value.  My concern is that once they have the car any leverage will go with it as we will have to pay for the car to be returned and for the intial recovery.  If we want to repair the car ourselves (have a ball park quote of £2k - Market value £7-8k).  We love that car and it's an excellent tow vechile for our caravan.  Any thoughts/advice?

[Deleted User]

They won't care about condition of your car. They will pay what it costs to get one in reasonable condition for the age.

Sandtree

[Deleted User] said:

They won't care about condition of your car. They will pay what it costs to get one in reasonable condition for the age.

Condition absolutely is an input to the likes of Glass both in terms of general condition plus explicit damage 

plumpplop

Just to say two weeks since the accident and still not actually got to talk value with anyone.  Does it usally take this long?  Had claims in the past, two in last 20 yrs so do't think I'm a dangerous driver! and both were dealt with so swiftly.  They're blaming COVID and the Bank holidays but still it seems a long time to wait for a  valuation.

Sandtree

Depends on the insurer and to a lesser degree if you are claiming off your own insurance or the third party's.

When people will switch insurers to save less than £1 its inevitable that some companies run lighter staffed which helps cut the price but means claims take longer etc.

[Deleted User]

Sandtree said:

[Deleted User] said:

They won't care about condition of your car. They will pay what it costs to get one in reasonable condition for the age.

Condition absolutely is an input to the likes of Glass both in terms of general condition plus explicit damage 

Only in general terms.