Insurer recovering reduction in vehicle value
A few months ago I was in a small accident - the other party's fault but not provable. My insurer, LV, decided to split costs with the other insurer (only my car was damaged). The other insurer is now not responding so LV has passed it to their lawyers who have issued legal proceedings against the other driver. The repair cost about £1000 and I paid £300 excess. The lawyers say they are seeking £2196.14 for reduction in vehicle value and £300 for my excess. I asked who would keep this 'reduction in vehicle value' and they replied "we are recovering the reduction for LV".
This seems strange. Why would the insurer receive anything for the car being worth less (which it probably isn't) or is this just the way insurers and courts handle these issues to justify a worthwhile sized claim?
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