2nd pay out for an old crash - too good to be true?

YoungBlueEyes

I hope this isn't a stupid question, but it seems to good to be true so I'd appreciate some opinions please.

In 2018 I crashed my car and it was a write-off. I skidded in the gravel at the side of the road and hit a wall. No-one else involved. As the airbags had gone off they wrote the car off. The insurance (Direct Line) paid out and I thought that was it.

I got a letter from Direct Line yesterday saying I'm "due an additional payment for your Total Loss Motor claim that we settled from your incident on date in 2018.  Based on some checks we've made to ensure the settlement was correct, we've realised that an additional payment in due to reflect the value of your vehicle at the time. We're sorry we've made a mistake and are putting it right." It says they'll send a cheque within 15 working days, and it came this morning.

Is this a thing? Companies going back years to make sure they paid out enough money? I accepted the first payment and thought nothing more of it, I'd never crashed my car before or claimed anything on the insurance so maybe I missed something. 

I don't want to look a gift horse in the mouth, but I can't believe this is a thing.

What do people think...? Has anyone had a similar experience/letter?

chrisw

Phone them up on a known number and ask them.

My mum declined a courtesy car from them for a scratch repair so they gave her £500 instead. She couldn't believe it and didn't like to take it and I phoned them up to ensure it wasn't a scam.

It was legit, so yes, insurers aren't always the bad guys.

YoungBlueEyes

Thanks chrisw. I’ll ring them this aft when I’ve got plenty of time to (potentially) wait on hold. 

I think I’m getting cynical in my old age. I can’t work out how cashing a cheque could be a scam, but then I can’t believe they’re going back through their books looking for people to give more money to. Both seem unlikely… 

DullGreyGuy

A number of insurers have been deemed to have been undervaluing vehicles in total loss situations and Direct Line is one of those that have been ordered to re-evaluate the settlements given for claims over a 5 year period and pay uplifts when its deemed they undersettled the claim. 

You can find various news articles about it from earlier this month like https://www.theguardian.com/money/2023/jul/01/direct-linecar-claims-underpayments-write-offs 

user1977

I think we've had another recent similar thread here too.

caprikid1

" got a letter from Direct Line yesterday saying I'm "due an additional payment for your Total Loss Motor claim that we settled from your incident on date in 2018.  Based on some checks we've made to ensure the settlement was correct,"

Direct Line ripping off customers and under paying them ? No shock whatsoever. Admitting it ? Astounded

YoungBlueEyes

That’s good info DullGreyGuy, thanks for that. I’ll read it this aft when I’ve got more time. 

I did search for similar queries but nothing came up (oh the shock).  

Thanks all  

Grey_Critic

Most likley come to light on an audit -

DullGreyGuy

Grey_Critic said:

Most likley come to light on an audit -

Not privy to the background but ultimately the FCA has ordered the redress programme... these used to come out of Arrow visits back in the FSA days most the time but given its consumer it could have been FOS data that triggered the investigation.

DL have accepted there were issues but believe it will be a low proportion of cases that are entitled to an uplift.

Have been involved in prior redress programmes with other insurers and it can be fairly small proportions that get payouts but if processes were bad then it doesn't really matter. With one particular client the cost of running the redress programme was significantly more than the total payouts (even before their insurance reimbursements) but fundamentally they'd not followed acceptable processes so had to review every case.

Alanp

Keep the letter from the insurer and run to the bank with your cheque…quickly..

YoungBlueEyes

The cheque'll be going in this aft

I've read DullGreyGuy's link, that's exactly what happened. Glad I'm not the guy with the Silver Spur though, jeez!