Any experience of Insurance Ombudsman? This sounds wrong?!

[Hi]

I am currently battling to get a sensible insurance payout for a car of mine which was stolen.

The insurance company offered me about 50-60% of what it would cost me to buy a replacement vehicle of the same spec/age/mileage/condition etc. The 'engineer' who made me the offer explained the value he had come to was based on 'Glasses' valuation, I tried to explain that my car was insured for market value, which is what it would cost to replace and not some value in Glasses guide. He didn't seem to understand. Anyway, I rejected the offer and am awaiting a call back from them to discuss further.

In the mean time I was curious so I rang the insurance ombudsman and asked their advice, they informed me that when they receive a complaint about a cars value, they make a decision based on the value in 3 guides, Glasses, parkers and CAP and that the actual price it would cost me to replace the vehicle is irrelevant. I am amazed if this is true and I am sure up the creek without a paddle if so as having looked at the values of my car in Glasses/Parkers they are miles out and not even close to representative of the prices cars are actually selling for.

Does anyone have any experience of dealing with a situation like this?

Thanks

[Hi]

To answer some questions above, yes I am comparing direct examples. I am looking to buy a direct replacement car, same age/mileage/condition, hopefully the same colour and the prices advertised are anywhere from about £18k to £22k, the insurance offered me £10k, the value of the car in Glasses/CAP/parkers is £12k. So even if they pay me the full value as per the parkers guide it isn't nearly enough to buy a replacement vehicle, it is highly unlikely I will be able to haggle a car down to £12k when it is advertised at £18k - £22k!

I spoke to the ombudsman again today (a chap who specialises in car claims said he would call me back today to discuss it) and he explained to me that it is indeed correct what I was told that they only use the parkers guides to value a car and that insurance is in no way meant to put you back in the position you were before the claim, they are only required to pay 'market value', by which they do not mean real market value but simply the value given to the vehicle in parkers/glasses guide. He said the actual price I could buy a like for like replacement car for is totally irrelevant and if the insurance payout is no where near enough to buy a replacement car then it is just tough luck.

I have to say I am incredibly surprised, I always assumed the ombudsman was meant to be the fair and reasonable one in all this!

[Hi]

xjay1337 said:

If they are required to pay Market Value and market value is 18k and you're being offered £10k, then that's not right?

No it's not right in my opinion, but what the ombudsman is saying is that when insurance companies and the ombudsman say 'market value' they actually mean the value printed in parkers guide, they are not interested in what it would actually cost to replace the car. That's what 2 different people at the ombudsman have now told me.


So the ombudsman said they should be paying me about £12k as that is the value of the car according to parkers/cap/glasses guides.