Direct Line Payout on Right Off

liznewman

This is just a word of warning in case you should right your car off and are insured with Direct Line. My son had a car pull out on him and wrote his car off. Direct Line use the Glass's guide to assess the payout.

If anyone has ever sold a car to a dealer it is a well known fact that traders use this as a guide on what to pay you, it is not the Market Price, which is what according to my son's policy is what they pay for a right off.

Traders give a price for a car out of the Glass's guide, then they put the car on the forecourt in excess of what they have paid for the car. My son now has to add at least £400 on to what Direct Line have paid out in order to purchase the same car in the same condition, owners, mileage. It is unfortunate what has happened to him, but I find the policy wording wrong, they are not paying out the market value of the car, this is what it will cost to purchase a car from a dealer, not a trade price which is what they are using.

Yes we all learn by our mistakes, I am adding this post just as a warning. I shall also be putting in a complaint to Direct Line suggesting that they perhaps make their policies clearer. Incidentally, he only had the car for 2 months, someone pulled out of a side road, he swerved to miss him and hit a tree. Fortunatlely my son got over his injuries, however, the owner of the other car has never been caught.

soolin

I have just had my car written off and was insured by Direct Line. They used standard industry calculations to pay me out and I received slightly more than I was expecting for the car. I did get a little extra for having a full manufacturers service history and very low mileage.

The trouble with car insurance is though that my car was worth more to me than the money it was worth. I had it from new and it was very well looked after so I knew I wouldn't get one in exactly the same state if I bought like for like, but I was lucky enough to be able to add more money to the total and buy a new car.

Soo

liznewman

Yes you were lucky. My point is that on their policy they state "Market Value" well it does on my sons. The Glass's guide is not a market value price it is the price that traders use when they quote you a price for your car. They do not use this price as a forecourt price, therefore, Glass's guide is not a market value price.

soolin

liznewman wrote:

Yes you were lucky. My point is that on their policy they state "Market Value" well it does on my sons. The Glass's guide is not a market value price it is the price that traders use when they quote you a price for your car. They do not use this price as a forecourt price, therefore, Glass's guide is not a market value price.

Glass's isn't a single price though, it is a series of prices. I had the Glass's figures before I was given my write off value and the figures I had showed, trade in values, buying values and selling values, so I got towards the top end of the buying figure where as the dealer who sneakily let me see the Glass's figure said they would probably give me somewhere between the buying and selling figure.

Soo

liznewman

Yes but it is still a traders guide, not a Market guide. Look at cars for sale, why are some the same model, year etc and yet there are very different sales prices.

I traded in my 2002 Cooper S in March for a new one. The Glass's guide for the vehicle was 11,500, although being a much sought after car the forecourt price was 15,000!!! So if I had been with direct line and wrote my car off, what would have been the price I would have got? No where near £15,000 is the answer.

I have taken the extra insurance out with my new car through BMW for £400 one off payment if my car is written off in the first 3 years I get full market value. Well worth it going on this experience.

Sk8lly

Hi There

Did you accept the first offer Directline made you?? If you did then really it is not there fault. If you had not accepted they would have went and done some research on how much it would cost to replace your vehicle in todays market and then made you an offer more in line with what it would cost to replace the car.

I Currently work for one of Directlines many approved repair centres and know they will start low, but when pushed will always pay a fair price.

jacquesmalone

I was in the same position with Fortis they offered me £350 below what I could buy my car replacement for so i cut out adverts from the local papers and off the net showing that asking price of similar cars to my write off with similar miles and kit and they paid out what I actually thought i could buy the same car in similar condition for.

liznewman

No we did not accept the quote. We sent off cars for sale, same mileage, age, oweners etc, they still would not budge said they now go soley on the Glass;s guide.

I would not trust my cooper s with an approved repairer. Would only take it to BMW, if it is repaired by someone approved by the Insurer, you warrenty is out of the window!!

rowantoad

Hi guys,

which figure from the glass's guide do they use?

My car has just been written off, i need to make sure i get a fair price from insurance.

They haven't said how much yet but the assessor has seen it and salvage are going to come and get it, hopefully not before they give me a figure.

liznewman

Basically, the cheapest one they can get away with, who are you insured with?

rowantoad

Hi Liz,

The broker is RAC and it's MMA insurance.

I have paid £2.95 to get a glass's certificate thing it gives 3 trade-in and 1 retail price.

If I get the glass's retail price it's more than I would expect but the trade-in prices are well below what it would cost me to replace the car.

Parkers guide is even worse and seems to bare no relation to what the cars are actually on the market for.