Insurance - Compensation of car's true value

[Katie_Jennings]

Just found this fabulous website. Don't know if anybody can help with this particular problem but here goes.

My dad's car was driven into from the rear recently and declared a write-off - the liability having been accepted by the other parties insurance. The issue is that the amount the insurance company intend paying is £450, which they believe is the car's value. Dad had owned the vehicle for eighteen years from new and it had been kept garaged for all of that time with all receipts, MOTs etc being retained. We have obtained evidence of transactions of several very similar cars exchanging hands for between £1,200 - £2,500!

We are determined to appeal over this matter. Most people would probably use the Financial Ombudsman (this replaces the Insurance Ombudsman), but looking at other fora there are many complaints about the FO - this outfit seems to be very inefficient at the most basic administration.

Would anybody be able to us some advice on having used the FO. My preference at this stage would be to take this matter through the small claims court. But I am interested to hear any views.

 

[2scoops0406]

I don't have any experience of the financial ohmbudsman but if you take out a small claim, they might ask why you haven't had invloved the FO. I think if I was you I'd go to your local citizens advice bureau.

And in the true spirit of my posts, here is a totally useless fact: ohmbudsman is a swedish word.

 

[big-all]

have you looked at any of the trade guids" glasses" i think is one
they wont normaly give you any more than a trade guide
even if your car was exeptionaly well looked after

http://www.glass.co.uk/uk/en/

dont know it this is any good

big all

 

[Katie_Jennings]

Thanks Eddie_M. Yes, actually I am a bit worried that the small claims judge might enquire as to why I have not sought the services of the FO and I do not suppose that he will be impressed that my reluctance was based on other derogatory fora posts. Maybe give the CA a try. Thanks.

Thanks Big_All. The problem is that the Glass's guide only seems to go back to 1996 - the vehicle we are concerned with is 9 years older than anything featured in this guide..

 

[Dustyy]

I have been in a similar position a couple of times and it is very hard to get the insurance company to pay up on the true value of the car. Try and get evidence from mags such as Autotrader on vehicles of the same make, model and year as your car in support of your claim.

Even then I didn't get any joy from them, although I was able to gain a little more money on one occasion when my local trading standards wrote a letter on my behalf - they have access to the Glass's Guide.

If the damage to the car isn't too bad and you can get it fixed up cheaply an option can be to buy the car off them for a nominal fee (i paid £25!!) and then you are left with the remainder. I got £650 for my old car after an accident, minus the £25, car fixed through a friend for £100, I am left with £525

 

[david and julie]

How badly damaged is the car? writing a car off is nothing to do with whether the car is repairable, it is purely and simply about money.

Bearing in mind the price of new parts (if available) and also labour of say £30 an hour, plus it is almost impossible to match the old paint, most older cars get written off for minor damage.

In some cases insurance companies will let you arrange a repair for an agreed price, so they know the cost. A friend of mine did this last year with a low mileage car. The bodyshop accepted the price and used some second hand parts(doors etc) to make the job viable.

If you did consider anything like this make sure the insurance settle any towing or storage costs as these may be more than the car is worth.

It is unfortunate, but when your renewal notice comes it is for you to increase the value (and premium) if you want to.

If you are saying the ombudsman is now the same one who dealt with endowment mortgages, I wouldn't put much faith in him.

 

[securespark]

D & J make a very good point. Your car, until settled, is still yours and you can argue a price with them not to write it off. As long as the work is up to scratch and inspected, they'll be happy.

But I seem to remember seeing some firm specialising in getting like for like deals with insurance firms in cases like this where they offer peanuts.

THey also get you a like for like courtesy car - ie if you have a roller, you don't end up in a Ka.

Try putting some keywords in Google.

 

[2scoops0406]

Good luck, sorry for the useless fact

 

[david and julie]

Just realised, back end bump? admitted liabilty. No win no fee eh! Don't let them get away with anything Jane, they will screw you (no pun intended) there is more than one way to skin a cat.

BTW. what sort of car is it?

 

[Katie_Jennings]

What I did not explain was that following the accident my dad drove the car home. The damage prevented the tailgate from being closed, not because the tg itself seemed affected, but because the C posts were out of alignment; the rear light clusters were broken (though still working); the rear bumper was destroyed and the panel underneath the car was slightly distorted (I think this is part of the floorpan?). Dad tied the tailgate down before driving home of course.

The problem was that the assessor was unable to visit my dad’s home to inspect the vehicle and dad thought it unwise to drive the car 20 miles or so to the assessor. Therefore it was arranged by the insurance company for the car to be picked up by a truck. This was the last he saw of the car. A couple of days later the insurance claims department rang to say the car would be too expensive to repair, would be declared a write-off and could dad suppress his glee at the prospect of receiving a cheque for…wait for it….£125! As you might imagine, he was apoplectic – he has been driving for half a century and never had so much as a claim!

Following this we compiled a set of details of transactions of similar vehicles (mostly off the web) and sent copies of these with an extremely stiff letter to the insurance company. They followed this with an offer of £450 but maintain that they are not prepared to go any higher. We have written to obtain a copy of the engineer’s report and ascertain the location of the vehicle. Only the former was forthcoming (damage described as medium, repair cost approx £2,300).

Dustyy : This is partly the problem. Because we have not yet been able to establish the car’s whereabouts we are unable to determine what repair could be undertaken by ourselves privately. It’s nice to hear that you were sorted out with a repaired car and quids-in – well done Dusty!

David and Julie : If matching paint had been the only problem I think dad would have had the whole car resprayed to his cost. I am sure every point you make about undertaking the repair work privately and negotiating with the insurance company is true – when we know of the cars location perhaps we can pursue this. The statement of insurance does specify “with an estimated value of £1,000” so another reason to gripe. Yes, it is the very same ombudsman, sadly.

Securespark : Yes, D and J’s point is very valid but we have yet to receive the location info. Don’t quite understand the “like for like” bit, could you expand, please? The courtesy car has been provided, thanks. A Focus 1.6 and deemed by dad’s astute technical analysis as “a crock of sh*t!”.

Eddie_M : Grateful for the useless fact. Is it merely a useless fact, though, or are you tacitly suggesting because of this that we should say “FO to the FO”?

Thanks to everyone for being so constructive and Eddie_M.

 

[david and julie]

Katie..if they wont tell you where the car is telephone the police, this car is your dads property until the case is settled. You may have personal belongings in it and are therefore entitled to know its whereabouts. You could also phone the insurance and ask the adress of the nearest approved repairer.

Obviously we can't see the damage, but the C posts (the part between above the rear quarter panel and up to the roof) are designed to crumple a bit to absorb the impact. The damage often looks worse than it is.

Obviously you could buy second hand tailgate,lights and bumper for next nothing compared to new.

If you don't know anybody for a second opinion I would consider asking around the lads at the bodyshop if they think it repairable as a foreigner.

 

[securespark]

Katie

See here: http://www.dooyoo.co.uk/motor-insurance/admiral-car-insurance/239126/

For advice on how to get the best price for your Dad's car:

http://www.rac.co.uk/legalservices/accident_care

I don't suppose you have a piccy you could post?

As for the value, in one post you mention 450, in another 125. Why the difference, or have I misunderstood?

You mention a replacement would cost between 1,2 and 2,5. What is it about the cars you have seen that makes such a difference (more than twice as much?)

Can you get copies of ads where the exact car is for sale, as closely as you can possibly match it? Model, engine type & size, number of doors and mileage, fsh etc all make a difference.

If you can let us know what car it is exactly, maybe we could do a bit more research.

Here's a post from a Forum that makes for interesting reading:

http://www.honestjohn.co.uk/forum/post/?f=2&t=24854

 

[waran]

Surely if the other party have accepted liability then the onus is on them to return you to the situation you were in before the accident.
Do you have legal cover?
If so then I reckon you should ask your lawyer to write to the other insurance company and ask for them to either fix the vehicle or provide funds so that you can purchase an equivalent replacement at a dealer (and provide advert/letter from dealer).
Also are you sure you don't have whiplash? These symptoms can take some time to materialise....

 

[david and julie]

waran.. that is a really interesting point. Several years ago I had I problem with Admiral Ins offering a low price. This was also for an accident where we were not to blame.

We paid for legal protection, I phoned Admiral and asked for details of this cover. They said what for, it is to cover you against legal fees in the case of an accident. I said my payout is part of this accident and I want to see if I am covered to take you to court. They never returned my calls or letters, but I ended up getting over 50% more than their original offer.

I don't think legal cover even exists, you don't get a policy and you are indemnified against costs anyway.

 

[securespark]

If gen, OK, but this attitude is seen as a victimless crime because "everyone does it" and "no-one gets hurt" "they can afford it".

It is NOT OK. We all pay in increased premiums and the more we do it, the more we'll pay. So we end up paying in the long run.

Sure, it is fair comment to say fight your corner for what is right. But not to defraud the insurance companies. No way.