Insurance payout possible options?
Discussion
Setting the scene. A car is in an accident and will either be repaired by the insurer, written off and value of the car paid to the customer or the car is bought back by the customer.
If the car is bought back, what payment is made from the insurer to the customer? And how is this calculated?
If the car is bought back, what payment is made from the insurer to the customer? And how is this calculated?
SV8Predator said:
No "salvage value" is not the same as the "repair cost".
It will be written off because the "repair cost" is more than the car (pre-you spinning it off the road) was worth.
The "salvage Value" is what the damaged car is now worth. In its damaged state. Now.
Ahhh ok. So basically, car worth £5k. Repair cost £4k. Write off. However car now worth £2k so that's how much insurer pays driver?It will be written off because the "repair cost" is more than the car (pre-you spinning it off the road) was worth.
The "salvage Value" is what the damaged car is now worth. In its damaged state. Now.
Ummm.... No....
If you haven't got a classic agreed value policy, then the "was worth" (pre-accident) is the trade market value. I think you'll be very lucky if the assessor thinks it's worth £5K.
I also think that your current salvage value will be less that 1K, not 2K. But that's to your advantage, as presumably you want to buy it back.
The insurance company (if the car gets written off) will make you an offer. Don't take the first offer, fight your corner and show examples for sale just now that are in similar (pre-accident) condition. Once you have agreed an pay-out figure, you ask to buy the damaged car back from them. This salvage vale will be subtracted from the pay-out figure.
Don't let them take the car away from you before everything is agreed.
If you haven't got a classic agreed value policy, then the "was worth" (pre-accident) is the trade market value. I think you'll be very lucky if the assessor thinks it's worth £5K.
I also think that your current salvage value will be less that 1K, not 2K. But that's to your advantage, as presumably you want to buy it back.
The insurance company (if the car gets written off) will make you an offer. Don't take the first offer, fight your corner and show examples for sale just now that are in similar (pre-accident) condition. Once you have agreed an pay-out figure, you ask to buy the damaged car back from them. This salvage vale will be subtracted from the pay-out figure.
Don't let them take the car away from you before everything is agreed.
Mark Conway said:
Ahhh ok. So basically, car worth £5k. Repair cost £4k. Write off. However car now worth £2k so that's how much insurer pays driver?
Closer, but either you're still not quite there, or you're not explaining your understanding.Salvage value for buy-back is usually calculated as a %age (say 10%) of the pre-damage value, so £500 for a £5,000 car. The insurer would pay out £5,000, but if you want to keep it, you effectively "pay" £500 for it, so you'd get £4,500 in your hand.
If the salvage value was £2k, then you'd get (£5k-£2k)=£3k.
SV8Predator said:
Ummm.... No....
If you haven't got a classic agreed value policy, then the "was worth" (pre-accident) is the trade market value. I think you'll be very lucky if the assessor thinks it's worth £5K.
I also think that your current salvage value will be less that 1K, not 2K. But that's to your advantage, as presumably you want to buy it back.
The insurance company (if the car gets written off) will make you an offer. Don't take the first offer, fight your corner and show examples for sale just now that are in similar (pre-accident) condition. Once you have agreed an pay-out figure, you ask to buy the damaged car back from them. This salvage vale will be subtracted from the pay-out figure.
Don't let them take the car away from you before everything is agreed.
Thanks for the tips If you haven't got a classic agreed value policy, then the "was worth" (pre-accident) is the trade market value. I think you'll be very lucky if the assessor thinks it's worth £5K.
I also think that your current salvage value will be less that 1K, not 2K. But that's to your advantage, as presumably you want to buy it back.
The insurance company (if the car gets written off) will make you an offer. Don't take the first offer, fight your corner and show examples for sale just now that are in similar (pre-accident) condition. Once you have agreed an pay-out figure, you ask to buy the damaged car back from them. This salvage vale will be subtracted from the pay-out figure.
Don't let them take the car away from you before everything is agreed.
. TooMany2cvs said:
Closer, but either you're still not quite there, or you're not explaining your understanding.
Salvage value for buy-back is usually calculated as a %age (say 10%) of the pre-damage value, so £500 for a £5,000 car. The insurer would pay out £5,000, but if you want to keep it, you effectively "pay" £500 for it, so you'd get £4,500 in your hand.
If the salvage value was £2k, then you'd get (£5k-£2k)=£3k.
Ahhh ok. So basically, car worth £5k. Repair cost £4k. Write off. Salvage value for buy-back is usually calculated as a %age (say 10%) of the pre-damage value, so £500 for a £5,000 car. The insurer would pay out £5,000, but if you want to keep it, you effectively "pay" £500 for it, so you'd get £4,500 in your hand.
If the salvage value was £2k, then you'd get (£5k-£2k)=£3k.
However car now worth £2k so insurer pays driver £3k?
Essentially this is the same as if the repair cost was £3k then they would have happily repaired it but £4k was too much. Correct?
Gassing Station | General Gassing | Top of Page | What's New | My Stuff