Additional Insurance payouts for 270,000 motorists
Discussion
https://www.fca.org.uk/news/press-releases/over-27...
Drivers to receive £740 payouts after car insurance scandal
It seems that Insurance Companies were lowballing claimants and not taking into account the fact that some owners looked after their cars to a much higher standard than others (I'm guessing a lot of PHers would fall into this category)
Fully justified compo for once
InitialDave said:
It's not clear to me from that what the metrics are for who gets a payout? Any further detail?
Afaics if you had a mint-condition Rover 800 which was washed/waxed weekly with Unicorn cream and the oil changes done every 4 months and generally treated as one would treat a favourite child then if/when it was written off the Insurance company wouldnt take any of this love and affection into account. They'd only pay out the price of a 200,000 miles model where the bodywork was 98% rust and 2% body filler.TL:DR the insurance companies underpaying claimants.
I'm guessing they have a record of what the real market value of the car was and what they actually paid out and now have to go back and handover the shortfall ?
Interesting, I've been amused my 2005 S4 V8 always comes up at less than £1500 value whenever I insure, not bothered me. Any example with a working engjne is 2-3k, with good history I'd like to think mine is 5-6k on a good day. Some special ones are at dealers for 9k plus, but insurance would default to less than 1.5k???
Weirdly, I think I may already have benefited from this.
In 2019 my Porsche Boxster was squished by a winnebago driving on the wrong side of the road. After a bit of negotiation, the insurance company paid out what I felt was a fair price (it would have bought me another similar car albeit without some of the maintenance that had been done on mine - suspension arms, new water pump etc etc).
Fast forward to last year and I received a letter saying that they had under-valued my car and would be sending a cheque for the remaining amount (in my case about £2k). I thought it was a scam to begin with but lo and behold a few weeks later the cheque arrived. I mentioned it to a few people as a "hey you won't believe my luck" kind of thing but otherwise just assumed that I had benefited from some weird law/loophole.
The eventual amount paid out was £2.5k more than I had paid for the car back in 2017 and considerably more than the car cost + maintenance (which I did myself so only had to pay for parts).
Seems like Direct Line were perhaps just getting ahead of this ruling...
In 2019 my Porsche Boxster was squished by a winnebago driving on the wrong side of the road. After a bit of negotiation, the insurance company paid out what I felt was a fair price (it would have bought me another similar car albeit without some of the maintenance that had been done on mine - suspension arms, new water pump etc etc).
Fast forward to last year and I received a letter saying that they had under-valued my car and would be sending a cheque for the remaining amount (in my case about £2k). I thought it was a scam to begin with but lo and behold a few weeks later the cheque arrived. I mentioned it to a few people as a "hey you won't believe my luck" kind of thing but otherwise just assumed that I had benefited from some weird law/loophole.
The eventual amount paid out was £2.5k more than I had paid for the car back in 2017 and considerably more than the car cost + maintenance (which I did myself so only had to pay for parts).
Seems like Direct Line were perhaps just getting ahead of this ruling...
Very interesting article, I wrote a golf gti off last November and the pay out was not enough to put me back in the same specification of car. The report says the insuree doesn’t need to do anything. If the insurance company “believe” that they lowballed on the pay out, they will contact you!.
Let’s see how this develops in the coming days and weeks, I will certainly comment on here if I here anything from my insurer, would be great to hear from others that were lowballed and have had a further pay out.
Let’s see how this develops in the coming days and weeks, I will certainly comment on here if I here anything from my insurer, would be great to hear from others that were lowballed and have had a further pay out.
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