Insurance claims, hire cars and write-off values
Discussion
Few questions I'm afraid: My lotus was driven into whilst stationary a couple of weeks ago and whilst fairly low speed, the estimate to repair is quite high compared to the car's value due to the front clam being damaged beyond repair, I'm therefore wary of being given a hire car because I'd rather the car wasn't written off. At what percentage of the insurance claim value will insurers write off a car? It's a weekend car so I can probably live without it while it's being repaired but there is one weekend where I need a car.
Bit annoying because I have a few weeks off soon and with the weather like it is today, I'd like to do a bit of
Bit annoying because I have a few weeks off soon and with the weather like it is today, I'd like to do a bit of
From my experience, I am not sure that there is a set percentage. We had a Zafira a few years ago (I know, I know) and it got rear ended on a motorway slip. The insurance company at first said they were going to write it off, we said we weren't happy with that, and they spoke with the repair place and seemingly changed their minds.... The mechanics of the process are a mystery to me, but it certainly seemed to suggest there is no fixed rule.
Sheepshanks said:
Maybe it's different if you're not at fault but I always thought it was 60% however some friends had their car, worth around £2K, T-boned and everyone said it would be a write-off but the other party's insurer authorised repairs. The repairer was amazed.
Surely it won't be 60%?!Doesn't it depend on the value of the salvage as well?
So if something has a high salvage value (e.g., a classic where used parts are regularly available and the market doesn't care about write-off status) the cost of repair to write off could be quite low, especially if there is a hire car while the insurer is trying to source new parts that a salvage buyer would repair with used more quickly.
On the other hand, if you have something driveable, with low relative salvage value because of low demand for parts (e.g., something recent and expensive (ish) that's already been in production for a long time so there are lot of older ones in breakers already), and readily available used parts, the cost to repair could be quite a high proportion.
So: ancient but immaculate worth £7k gets written off for £500 repair; new Punto worth £7k is repaired after a £5k smash? Possible.
So if something has a high salvage value (e.g., a classic where used parts are regularly available and the market doesn't care about write-off status) the cost of repair to write off could be quite low, especially if there is a hire car while the insurer is trying to source new parts that a salvage buyer would repair with used more quickly.
On the other hand, if you have something driveable, with low relative salvage value because of low demand for parts (e.g., something recent and expensive (ish) that's already been in production for a long time so there are lot of older ones in breakers already), and readily available used parts, the cost to repair could be quite a high proportion.
So: ancient but immaculate worth £7k gets written off for £500 repair; new Punto worth £7k is repaired after a £5k smash? Possible.
Impasse said:
If you have no need of the hire car then don't accept it as you could be waiting a while for a replacement clam and this will push up the overall price of the repair.
This is what I'm trying to be wary of given the quote for repair. It's a weekend car so I certainly don't need a replacement for the full period but I do have a few weekend plans where a car is needed if the repair falls over those weekends.No waiting time for clams right now which is good
According to the GTA between insurers then the cut off is 66%. The third party insurers then get a choice to wrtie off or repair and they have 14 days to decide.
depends of course if either of the insurers are party to the GTA. Not all of them are.
Whilst your intention may be honorable not taking a hire the third partys don't seem to care. Most likely they assume you are in a hire anyway.
You could speak to the repairers for a fixed quotation to bring the price down which is what one of the other replies have mentioned. A lot of the time also the garages tell customers whatever their guesstimate is which causes no end of problems when the insurers engineers make a different decision as the client believes whatever the guy taking the photos at the garage has said. More often than not they're at the bottom of the chain and have seemingly little understanding.
depends of course if either of the insurers are party to the GTA. Not all of them are.
Whilst your intention may be honorable not taking a hire the third partys don't seem to care. Most likely they assume you are in a hire anyway.
You could speak to the repairers for a fixed quotation to bring the price down which is what one of the other replies have mentioned. A lot of the time also the garages tell customers whatever their guesstimate is which causes no end of problems when the insurers engineers make a different decision as the client believes whatever the guy taking the photos at the garage has said. More often than not they're at the bottom of the chain and have seemingly little understanding.
In my experience (I worked in a bodyshop for a while) the decision to write-off is made purely based on repair cost against market value of car (or agreed value if you have insurance on that basis).
The exact percentage varies - it's sometimes even specified in agreed value policies - but 45% came up a lot on the run-of-the-mill cars we tended to work on.
Bear in mind that 'market value' is a very moveable feast in itself - you can be sure they'll aim low if they want to and high if they want to - by amounts will may raise your hair!!
In our case, working on run-of-the-mill cars, our repair costs had to conform to industry-standard times and repair costs too - no "doing it cheaper" was allowed - but rarer cars may have some latitude in that department (we did repair an imported car once and they chose to use a used spoiler at £600 because a new one was £2500 from Japan!!)
That doesn't mean you should go nuts for claiming tho - the total value of the claim will hang around your neck for at least 6 years - even if the other party pays it. In some cases I've heard it's better to get a hire car and send the invoice to the other insurer directly but that may be just talk...
The exact percentage varies - it's sometimes even specified in agreed value policies - but 45% came up a lot on the run-of-the-mill cars we tended to work on.
Bear in mind that 'market value' is a very moveable feast in itself - you can be sure they'll aim low if they want to and high if they want to - by amounts will may raise your hair!!
In our case, working on run-of-the-mill cars, our repair costs had to conform to industry-standard times and repair costs too - no "doing it cheaper" was allowed - but rarer cars may have some latitude in that department (we did repair an imported car once and they chose to use a used spoiler at £600 because a new one was £2500 from Japan!!)
That doesn't mean you should go nuts for claiming tho - the total value of the claim will hang around your neck for at least 6 years - even if the other party pays it. In some cases I've heard it's better to get a hire car and send the invoice to the other insurer directly but that may be just talk...
Take the value of the car and deduct 28% that will give you a repair up to figure.
For example £6000 x 28% - = repair upto if the repairs are over the repair up to but less than the total value of the vehicle it will be a Cat D over the value of the vehicle it will be a cat C
If the figure is under the repair upto then it should be repaired.
For example £6000 x 28% - = repair upto if the repairs are over the repair up to but less than the total value of the vehicle it will be a Cat D over the value of the vehicle it will be a cat C
If the figure is under the repair upto then it should be repaired.
Impasse said:
If you have no need of the hire car then don't accept it as you could be waiting a while for a replacement clam and this will push up the overall price of the repair.
When making a claim against the third party, throw in a £25 a day lack of availability use claim, after the lotus has been fixed. This is a legit thing to do.
Wish said:
Best thing to do is get a cash in lieu payment from the TP insurer and add a payment for hire. On a lotus you will be able to request an easy £85 per day.
Are you allowed to do this? If so, how? All I want is my car repaired at a place of my choosing and a car next weekend when I need it.Gassing Station | General Gassing | Top of Page | What's New | My Stuff