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...
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