Car written off, now taxed??

tifo

You were within your rights to keep the car as salvage and it was probably a Cat N light damage. You needed to tell your insurance company, they can't force you to scrap it.

As rightly said, most insurers have a contract with salvage companies and will send cars to them at a fixed price for the category, regardless of damage. This is higher than what your own engineer will value at salvage. If you keep the car the insurer will deduct their contract salvage rate, so they don't really lose out. I've had this several times.

Most scrappage firms are a pain to deal with as they just want the car, especially when they get a nice new model and trim.

DullGreyGuy

tifo said:
If you keep the car the insurer will deduct their contract salvage rate, so they don't really lose out. I've had this several times.

But they do because their contract rate is not as good as it could be...

To use an area I've had more experience in... I payout £50m a year on jewellery claims, if I give my customers the choice of a gift card from my preferred supplier or cash then I get about 60% saying they'll use my company so I go to a jewellers and ask what discount I get for spending £30m a year with them and they offer 35%. If instead I say it's mandatory to use our supplier other than where they cannot supply an equivalent item and then I'd be putting 90% of claims via them so a £45m a year. Do you think I get a bigger discount? Of cause.

It's no different with salvage companies... promise them all cars and you get a better rate than if you say you or your insured will cherry pick all the good runners etc and only give them the dross. Yes you reduce the settlement by the salvage but now your salvage is a lower rate and so you are out of pocket.

There are a variety of ways insurers "encourage" behaviours that pushes more volume via their preferred path such as Aviva's additional excess if you dont use their approved repairer.

tifo

DullGreyGuy said:

tifo said:
If you keep the car the insurer will deduct their contract salvage rate, so they don't really lose out. I've had this several times.

But they do because their contract rate is not as good as it could be.

It's no different with salvage companies... promise them all cars and you get a better rate than if you say you or your insured will cherry pick all the good runners etc and only give them the dross. Yes you reduce the settlement by the salvage but now your salvage is a lower rate and so you are out of pocket.

The insurer can't have everything. I know they, like banks, want to but in the real world they can't. The insured has a right to keep the car and the insurer deducts their contract salvage value so they haven't lost out.

They're not out of pocket because the contract salvage value is still higher than the salvage value the insured would get. Sometimes the salvage yard gains and sometimes they might lose but that's how business is. They could get a high priced car for the rate or not but overall they make a lot of money from it, either breaking or selling as salvage, many repair and sell.

DullGreyGuy

tifo said:

DullGreyGuy said:

tifo said:
If you keep the car the insurer will deduct their contract salvage rate, so they don't really lose out. I've had this several times.

But they do because their contract rate is not as good as it could be.

It's no different with salvage companies... promise them all cars and you get a better rate than if you say you or your insured will cherry pick all the good runners etc and only give them the dross. Yes you reduce the settlement by the salvage but now your salvage is a lower rate and so you are out of pocket.

The insurer can't have everything. I know they, like banks, want to but in the real world they can't. The insured has a right to keep the car and the insurer deducts their contract salvage value so they haven't lost out.

They're not out of pocket because the contract salvage value is still higher than the salvage value the insured would get. Sometimes the salvage yard gains and sometimes they might lose but that's how business is. They could get a high priced car for the rate or not but overall they make a lot of money from it, either breaking or selling as salvage, many repair and sell.

Please quote the legislation that says the insured has the right to keep salvage?

If the insured wants the lowest price possible, which over 99% do, then they have to accept there are consequences such as not keeping their car after a write off or not having someone on the phone 24/7 within 2 rings

Nobbie1967

tifo said:

DullGreyGuy said:

tifo said:
If you keep the car the insurer will deduct their contract salvage rate, so they don't really lose out. I've had this several times.

But they do because their contract rate is not as good as it could be.

It's no different with salvage companies... promise them all cars and you get a better rate than if you say you or your insured will cherry pick all the good runners etc and only give them the dross. Yes you reduce the settlement by the salvage but now your salvage is a lower rate and so you are out of pocket.

The insurer can't have everything. I know they, like banks, want to but in the real world they can't. The insured has a right to keep the car and the insurer deducts their contract salvage value so they haven't lost out.

They're not out of pocket because the contract salvage value is still higher than the salvage value the insured would get. Sometimes the salvage yard gains and sometimes they might lose but that's how business is. They could get a high priced car for the rate or not but overall they make a lot of money from it, either breaking or selling as salvage, many repair and sell.

I think they can if you are claiming off your own insurer and they have it in their terms and conditions that you have signed up to. A 3rd party insurer can’t as you are just claiming compensation off them for losses suffered.