Insurance pay out question
Discussion
Hi folks, thought I'd ask the experts this one...
My sister's fiancee, Chris, had a Mitsubishi FTO, which was damaged by water getting into the engine before Christmas when we had all the rain and flooding. The insurance company were very happy (and keen) to take it away, and assess for repairs, but wrote the car off. It was insured at a value of 5k, but they have offered 1.5k. Chris has provided them with adverts for very similar standard cars, which are valued at 4k, but the insurers won't budge, and have said they won't offer more.
Is there anything that he can do, or would this payout seem reasonable to people here.
Thanks for your help.
My sister's fiancee, Chris, had a Mitsubishi FTO, which was damaged by water getting into the engine before Christmas when we had all the rain and flooding. The insurance company were very happy (and keen) to take it away, and assess for repairs, but wrote the car off. It was insured at a value of 5k, but they have offered 1.5k. Chris has provided them with adverts for very similar standard cars, which are valued at 4k, but the insurers won't budge, and have said they won't offer more.
Is there anything that he can do, or would this payout seem reasonable to people here.
Thanks for your help.
Yes.
You are fully entitled to ask how the insurance company came up with their figure.
Of course, this is the tactic they use to minimise payouts. I would have a look in Glass' guide for the value of the car as this in generally respected. The second option is if the insured has 'Legal Cover' as an option, in the small print you can choose your own solicitor at their cost to protect your interests in cases of conflict of interests between you and the insurance company.
Once they know that each 'back and forth' letter writing is costing them £100 or £200 that should get it sorted pretty quick.
You are fully entitled to ask how the insurance company came up with their figure.
Of course, this is the tactic they use to minimise payouts. I would have a look in Glass' guide for the value of the car as this in generally respected. The second option is if the insured has 'Legal Cover' as an option, in the small print you can choose your own solicitor at their cost to protect your interests in cases of conflict of interests between you and the insurance company.
Once they know that each 'back and forth' letter writing is costing them £100 or £200 that should get it sorted pretty quick.
Yes. Tell them you are utterly appalled and make a formal complaint in writing. Enclose evidence of your valuation and ask them to show how they have reached their valuation. If they do not co-operate then threaten to refer the matter to the Ombudsman without any further reference to them. I'm sure you'll get a more "helpful" reply. They're just trying it on. Don't fall for it!
Thanks for the replies, they will be relieved and reassured I'm sure.
I'll have them write a letter asking why the low valuation, and include their valuation and evidence, asking for this amount, or for a car to same spec and standard. They've bought a Passat as replacement as it's more suitable (I'm ashamed my sister has brought this on a fellow car lover), so they could sell a car on if the insurers went that route (passat, fto or her punto). I'd get rid of the Punto myself... hmmm not a bad idea.
I'll have them write a letter asking why the low valuation, and include their valuation and evidence, asking for this amount, or for a car to same spec and standard. They've bought a Passat as replacement as it's more suitable (I'm ashamed my sister has brought this on a fellow car lover), so they could sell a car on if the insurers went that route (passat, fto or her punto). I'd get rid of the Punto myself... hmmm not a bad idea.
JP_Midget said:
Hi folks, thought I'd ask the experts this one...
My sister's fiancee, Chris, had a Mitsubishi FTO, which was damaged by water getting into the engine before Christmas when we had all the rain and flooding. The insurance company were very happy (and keen) to take it away, and assess for repairs, but wrote the car off. It was insured at a value of 5k, but they have offered 1.5k. Chris has provided them with adverts for very similar standard cars, which are valued at 4k, but the insurers won't budge, and have said they won't offer more.
Is there anything that he can do, or would this payout seem reasonable to people here.
Thanks for your help.
My sister's fiancee, Chris, had a Mitsubishi FTO, which was damaged by water getting into the engine before Christmas when we had all the rain and flooding. The insurance company were very happy (and keen) to take it away, and assess for repairs, but wrote the car off. It was insured at a value of 5k, but they have offered 1.5k. Chris has provided them with adverts for very similar standard cars, which are valued at 4k, but the insurers won't budge, and have said they won't offer more.
Is there anything that he can do, or would this payout seem reasonable to people here.
Thanks for your help.
Similar happened to me. I had an astra 1.4 written off (50 % my fault but 100% my fault according to both insurance companies)
The day before I'd NEARLY sold it. The Guy was prepared to pay £800 but wanted to see it in the daylight as it was dark and raining when he saw it abnd test drove it, and I crashed on the way to work, after which I was going to stop by his house.
My Insurance company offered me alot less than that minus my excess. I was insenced. I did what you've done. I got 36 adverts for older and lower spec astras with higher milage and higher price, from the autotrader over the course of 3 weeks. I ploted a graph of age vs retail price that showed mine was worth £1600 and eventually ended up with a cheque for £1350. The mistake the insurance company made was to take the piss in the first place. I'd have taken £800 minus my excess, but once they'd pissed me off.
I'm not sure what your next step is. You have proof of value, there is an Insurance Ombadesman I think, but Hey just take them to the small claims court !!!
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