Low insurance valuation offered on car to be written off

Brie

Don't phone anyone.  Take your current car details and plug them into an online second hand car site like autotrader and see what it brings up.  Screen shot and send that to the insurance company and ask for a cheque/bank transfer for that amount if it's satisfactory.  If the car is only available to buy at £3k then that's what they should give you.  And then agree with a local to you garage (not their pet mechanics) whether it's ok to continue to use or if you should sell it for scrap.  Then go out and buy a new to you car if necessary.

sevenhills

Just looked on eBay, 2008 Mazda 2, one at £4k then £3.5k and lower, I didn't see if they were automatic 

ashleyk

There is only one Mazda 2 automatic Capella and that is £4K. There is one other Mazda 2 automatic that is cheaper, but it's a lower spec model with high mileage and really banged up with numerous dents and a cracked bumper etc. 

Bigphil1474

OP, have you had the car checked out by a local garage you trust - they might be able to fix it for less than £1k. In that case, ask the insurers to give you cash minus the scrap value, and your car will be repaired and you might have a bit of change. The loss will be on any future resale value, but if you aren't planning on selling it, then no real loss.

Mildly_Miffed

What value was given when you took the current policy out?

There's no way they'll repair a 15yo car with bumper, bonnet, slam panel damage. So, yes, it's going to be written off. Agreeing the value is separate from that.

https://www.gumtree.com/p/mazda/mazda-2-1.4-petrol-ulez-free-automatic/1451008079

ashleyk

It's insured for market value and that is really the key point. The price of used cars has risen substantially since covid. I happen to think the prices at present are insane, but that doesn't alter the facts. 

The car you link to is a lower spec model with high mileage and three years old. It's pretty banged up if you look through the pictures, including several dents to the boot in addition to damaged bumpers. The front one is barely attached, yet it is still on sale for more than the insurers are offering for ours. That car in the link would instantly be deemed a write off by any insurer. 

ashleyk

I meant to say the car in that link was 3 years older, not 3 years old. 

sevenhills

https://www.confused.com/car-valuation

sammynunes

I wonder if something is going on with car insurers and valuations.

I had an accident nearly a whole year ago and the insurance has so inept and incompetent that I cannot think they are doing it for any other reason that it is their policy to avoid/minimise payouts.

The valuation was embarassingly low (about 40% of value) and they have basically not entered into any communication about the valuation and have ignored any correspondance. The FOS have already penalised them with an extraordinary payment for delaying (they haven't paid it and I don't expect them to) and it is now with the FOS again for the ruling on a valuation.

I also know of one other person who has had a vehicle written off for a fire who has experienced a total lack of communication.

Mildly_Miffed

ashleyk said:

It's insured for market value and that is really the key point. The price of used cars has risen substantially since covid. I happen to think the prices at present are insane, but that doesn't alter the facts. 

The car you link to is a lower spec model with high mileage and three years old. It's pretty banged up if you look through the pictures, including several dents to the boot in addition to damaged bumpers. The front one is barely attached, yet it is still on sale for more than the insurers are offering for ours. That car in the link would instantly be deemed a write off by any insurer. 

It's not just "insured for market value". It's insured for market value OR the declared value, whichever is lower. Read the policy.

How much was the declared value at policy inception?

Differences of a few years between a 15yo and a 19yo car, a low- or a high-spec version are not that major when it comes to pricing. It's a 15yo, unloved, high-tax, thirsty small car. Perhaps the first offer is a bit low - but your suggestion of £2500 low is an order of magnitude out.