Car insurance write off value changed

fBi24_2024

My insurance company gave me a value for my car after it was written off. However a week later when I queried why I hadn't received the money yet they said there had been a mistake and now they'd revalued for a £1000 less than the original value. Can they do this? I've complained as I've bought a new car based on that figure but they have said there's nothing they can do as it was a mistake. I've made an official complaint but they have basically said that I need to accept the new valuation. Other than complaining to the ombudsman which I intend to do anyway based on a whole catalogue of errors throughout the whole process, is there anything else I can do?

born_again

As you have complained, as they will not change their mind. Then you will have to let it run it's course.

Aylesbury_Duck

Get their final decision in writing and then go to the ombudsman.  It won't help you immediately because it will take time, so you'll either have to find the extra money or choose a cheaper car for now.

visidigi

What % of the total is a £1k change? I mean is it a large difference or small? As in is it obviously over quoted?

Any settlement can be argued, so if you showed ads for the same spec/mileage car from autotrader how far off that was your insurance payout?

fBi24_2024

Thanks for the replies. The initial valuation was a couple of hundred less than an equivalent car but I didn't argue with it as the experience with them (an entire thread of its own) has been so abysmal I couldn't face arguing. The original valuation was £10 so a drop of £1k is fairly substantial to me. In my opinion they haven't used equivalent cars in their comparison as when I queried it only one of the cars was an an equivalent spec (the difference is about a grand when looking at the different specs online).  My understanding is it's supposed to be like for like and it's not. Yes it's a choice to have a higher spec car and I could cope with a lower one but that was what I insured and what they accepted the premium for.

born_again

fBi24_2024 said:

Thanks for the replies. The initial valuation was a couple of hundred less than an equivalent car but I didn't argue with it as the experience with them (an entire thread of its own) has been so abysmal I couldn't face arguing. The original valuation was £10 so a drop of £1k is fairly substantial to me. In my opinion they haven't used equivalent cars in their comparison as when I queried it only one of the cars was an an equivalent spec (the difference is about a grand when looking at the different specs online).  My understanding is it's supposed to be like for like and it's not. Yes it's a choice to have a higher spec car and I could cope with a lower one but that was what I insured and what they accepted the premium for.

Sadly not the case.
There refund is based on the value that they believe it is worth, from their various sources. 

So what did they value the car at to start with?

visidigi

fBi24_2024 said:

Thanks for the replies. The initial valuation was a couple of hundred less than an equivalent car but I didn't argue with it as the experience with them (an entire thread of its own) has been so abysmal I couldn't face arguing. The original valuation was £10 so a drop of £1k is fairly substantial to me. In my opinion they haven't used equivalent cars in their comparison as when I queried it only one of the cars was an an equivalent spec (the difference is about a grand when looking at the different specs online).  My understanding is it's supposed to be like for like and it's not. Yes it's a choice to have a higher spec car and I could cope with a lower one but that was what I insured and what they accepted the premium for.

I unfortunately had a car total loss recently - the first figure they gave was low-ball, they expect you to go back to them with a comparable car, you can get some more if saying its a higher spec, if you can prove the spec (remember the person behind the desk doesn't necessarily know the options on your car.

I am assuming the £10 is actually £10k, and therefore the reduction is £1k or 10%.

The whole process aside, if you can prove the value of the car with buying a *similar* (condition, colour, mileage, spec - NOT the condition you kept it in as this is debatable) then you should be able to get them to go up, if reasonable.

I know when I did it they made an offer, I had to verbally accept that offer so the recording picked it up and then they emailed confirmation and paid out shortly after.

SO did any of this happen in your circumstance? did they offer and you verbally accepted and then they called a 'mistake'?

fBi24_2024

Yes sorry it was £10k originally. They emailed it. I replied to accept. They then hadn't sent the cash a week later so I phoned to query why and was told they had made a mistake in the evaluation and had redone and was now £9k. 
Having reread the original email it does say on the bottom in very small print subject to checks and the value may change so I guess I am going to have to accept and then go the financial ombudsman route. I have already sent them comparable cars and they are refusing to change the valuation and saying their way is a more accurate valuation. 

DullGreyGuy

fBi24_2024 said:

Yes sorry it was £10k originally. They emailed it. I replied to accept. They then hadn't sent the cash a week later so I phoned to query why and was told they had made a mistake in the evaluation and had redone and was now £9k. 
Having reread the original email it does say on the bottom in very small print subject to checks and the value may change so I guess I am going to have to accept and then go the financial ombudsman route. I have already sent them comparable cars and they are refusing to change the valuation and saying their way is a more accurate valuation. 

Its worth reading the information that the Financial Ombudsman gives to businesses about complaints on write offs and what they expect:

https://www.financial-ombudsman.org.uk/businesses/complaints-deal/insurance/motor-insurance/vehicle-valuations-write-offs 

Generally, what the guides like Glass states is what the ombudsman considers is reasonable. These guides are written for the motor trade, finance and insurance and each of those may prefer a higher or lower price depending on the circumstances and so are broadly considered fair else they'd lose large amounts of their business when finance houses discover they've been selling off returned vehicles well under value because insurers were wanting the numbers lowballed. 

GDB2222

If there was an offer to settle the claim, and this was accepted, surely it's then too late for the insurer to withdraw the offer? This would not apply if the offer was completely absurd, but a 10% difference doesn't fall into that category.

Also, if the OP has committed to buy another car based on the mistaken offer, then he has 'changed his position', and it becomes inequitable for the insurer to withdraw the offer.  

Those are two points to put to both the company and the FOS.

Besides that, if there is evidence of comparable cars costing more, then I would put that to the company now.