Disputing insurance valuation of a written off car with a new engine

brumbill

I’ve never been through any of this previously, so not sure what the proper process is when it comes to valuations of cars when they are written off, so any help would be amazing.

I was in a no fault accident a few weeks ago (third party admitted fault) and though a number of people who saw our car (including the man who took it away) said it looked like bodywork damage and nowhere near a write off, the valuation for repairs exceeds what they have valued the car at.

i have a few issues with this. Firstly, their valuation is based on what would commonly be referred to as the ‘book price’ not the market value. I can’t buy a like for like replacement for the money they are saying we will get.

secondly, the car had a new engine only two years ago. At the time the work was complete and a few times since, garages have told us that this will mean the car is worth more than another similar car as, though the mileage says 75000, it is more like 20,000 now as that’s what’s on the new engine

i have argued both points with the insurance company - I’ve given them multiple examples of same spec and mileage cars that are for sale for more on auto trader, plus raised the engine issue and sent them the invoice for the works (which included a ‘head assy cylinder; engine assy shirt; timing chain etc.)

they won’t budge on the price and have advised the engine replacement is classed as ‘ Essential Maintenance’ and it ‘will not increase the Valuation of the vehicle, as the work was necessary. Without this essential work being carried out, the vehicle could not be used and the value would not be very high.’

indo t believe this to be accurate - as an example, car listings regularly take about recent timing belt changes so potential buyers know there is no risk of that being an imminent cost. It increases saleability and value.

are there any experts and mechanics etc on here who may be able to advise on how to get the offer increased to a market value rate and one that takes into account the works done?

many thanks

k12479

A replacement engine would, for me, ring alarm bells and be a reason to avoid a particular car, not pay a premium for it. That's clearly a sign of catastrophic/uneconomic damage rather than regular/preventative maintenance like timing belt replacement.

brumbill

Thanks very much for your reply

Isthisforreal99

You are conflating asking prices on auto trader with market value. Realistically how many will sell for the asking price? Bet there are plenty listed below book value - you can't cherry pick the highest ones you like.

Can't see the new engine making any major impact on any valuation tbh.

Standard practice to be offerred 'book' price. How much are we talking in difference?

chrisw

k12479 said:

A replacement engine would, for me, ring alarm bells and be a reason to avoid a particular car, not pay a premium for it. That's clearly a sign of catastrophic/uneconomic damage rather than regular/preventative maintenance like timing belt replacement.

Yes, I had a replacement car engine fitted after 5 years under manufacturers 'good will' but decided not to mention it when I sold it and no one ever asked. There was nothing inherently wrong but it never fitted quite the same as when it was factory assembled.

brumbill

Isthisforreal99 said:

You are conflating asking prices on auto trader with market value. Realistically how many will sell for the asking price? Bet there are plenty listed below book value - you can't cherry pick the highest ones you like.

Can't see the new engine making any major impact on any valuation tbh.

Standard practice to be offerred 'book' price. How much are we talking in difference?

Thanks for your reply. Yeah I get that completely, and I’m not try to scam anyone, but the difference in value is around £1800-2000. When sending examples over to them I haven’t used the most expensive ones at all - if I did that, the difference is between £3000-4000. In contrast, when responding, they sent three examples of cars with over 30k more mileage on them that are about £200 less than what they are valuing the car at

Isthisforreal99

brumbill said:

Isthisforreal99 said:

You are conflating asking prices on auto trader with market value. Realistically how many will sell for the asking price? Bet there are plenty listed below book value - you can't cherry pick the highest ones you like.

Can't see the new engine making any major impact on any valuation tbh.

Standard practice to be offerred 'book' price. How much are we talking in difference?

Thanks for your reply. Yeah I get that completely, and I’m not try to scam anyone, but the difference in value is around £1800-2000. When sending examples over to them I haven’t used the most expensive ones at all - if I did that, the difference is between £3000-4000. In contrast, when responding, they sent three examples of cars with over 30k more mileage on them that are about £200 less than what they are valuing the car at

30k miles more than the new engine has actually done or the car has done in total? As said before you might be placing too much importance on this new engine.

brumbill

Isthisforreal99 said:

brumbill said:

Isthisforreal99 said:

You are conflating asking prices on auto trader with market value. Realistically how many will sell for the asking price? Bet there are plenty listed below book value - you can't cherry pick the highest ones you like.

Can't see the new engine making any major impact on any valuation tbh.

Standard practice to be offerred 'book' price. How much are we talking in difference?

Thanks for your reply. Yeah I get that completely, and I’m not try to scam anyone, but the difference in value is around £1800-2000. When sending examples over to them I haven’t used the most expensive ones at all - if I did that, the difference is between £3000-4000. In contrast, when responding, they sent three examples of cars with over 30k more mileage on them that are about £200 less than what they are valuing the car at

30k miles more than the new engine has actually done or the car has done in total? As said before you might be placing too much importance on this new engine.

30k more than the car has done in total. It’s done 74k, they’ve used cars with over 100k

MyRealNameToo

"Book value" typically refers to the likes of Glass's, CAP etc, these are motor trade software who gather sale prices from various sources to enable them to state the price for trade in, private sale, forecourt sale etc. In the good old days there were books that were published frequently but these days its software and the prices are "live". 

financial-ombudsman.org.uk/consumers/complaints-can-help/insurance/motor-insurance/vehicle-valuations-write-offs

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

The above two links are what the Ombudsman says to both customers and insurers on how they expect a total loss to be handled including valuation. In short if all the books give a similar price and the issuer's offer is inline with these then it's likely the complaint won't be upheld. 

You could commission an engineers report to value the vehicle however this is clearly a risk as if they agree the offer was reasonable then you will get no more and have to pay the engineers fee. 

It's not clear from your post if you are claiming from your own insurer or from the third party's insurer? (or maybe using an accident management company or such). You only have the right of formal complaint if you are claiming from your own insurer.