car insurance payout wont cover cost of like for like replacement.

Nodiggidy123

Nodiggidy123

Nodiggidy123

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Hi all my sister in law's car was unfortunately crashed into. When another car swerved to avoid a cat and has written her car off.

Car was a 55 plate focus zetec 1.6 with 89k on clock

Now she's had a offer of 2k but that won't cover the cost of buying a like for like replacement around here. She refused the offer based on this but the insurance company have basically said take it or leave it.

She's been told she can pursue it further but would be liable for costs.

Would she have any realistic expectctation of getting more if she did?
 
Get some examples together of like for like and send them over, you always have the option to decline it and bug the crap out of insurance.
 
I helped her do just this and it seems largely to have been ignored

^ I imagine if the insurance company brought it to her she'd have it. But there is nothing around here
 
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Armageus said:
I had a quick look and could see at least a handful of cars for anywhere between £1600 and £2500, with 85-95k miles, and on 05 or 55 plates.

As long as they can find at least a couple of cars for that price, would say it is a fair offer.
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Based on what I've seen around here. I told her to ask for 2500/2750. So not hugely more but they won't budge
 
SpeedFreak said:
If she can afford to wait I would take it to the Financial Ombudsman:

http://www.financial-ombudsman.org.uk/consumer/complaints.htm
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What are they going to do?

Car insurance pays out the book value of the written off vehicle at the time of the accident based on mileage and condition.

Unless you take out additional "gap" insurance to cover the difference between the book value and the cost of replacement, you're going to be offered the book value for your vehicle.
 
Terminal_Boy said:
What are they going to do?

Car insurance pays out the book value of the written off vehicle at the time of the accident based on mileage and condition.

Unless you take out additional "gap" insurance to cover the difference between the book value and the cost of replacement, you're going to be offered the book value for your vehicle.
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I didn't even know about gap insurance.
 
How has the car been written off - how bad was the damage? Third party insurers and uneconomical repair value is very much a grey area to me though, but I was under the impression that it was hard for a third party insurer to "write-off" a car.
 
£2000 is about right, and given how common ford focuses are im sure they have a pretty good idea of what they are worth and what they are papered to pay out.

In fact i just had a quick look and found around 60 cars between 1900-2100 with similar mileage, same age or newer. Finding a like for like replacement will be a doddle.

I really wouldn't waste your time. accept the payout and move on.
 
Terminal_Boy said:
What are they going to do?

Car insurance pays out the book value of the written off vehicle at the time of the accident based on mileage and condition.

Unless you take out additional "gap" insurance to cover the difference between the book value and the cost of replacement, you're going to be offered the book value for your vehicle.
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No, in a non-fault accident you should be put back to a pre-crash situation. If the market price for that car (based off adverts) is around £2.5K for similar condition, mileage, age and spec then that's what you should be given.
 
But does it only go on market value for a certain radius while searching cars. As if you can find about 50 cars around 2grand but they are 40 miles away or further does it matter to the insurance company.
 
Liquidfox said:
No, in a non-fault accident you should be put back to a pre-crash situation. If the market price for that car (based off adverts) is around £2.5K for similar condition, mileage, age and spec then that's what you should be given.
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I haven't seen a Glass's guide in a while, but I seem to remember it reflected the trade price rather than the private sale value.
 
Terminal_Boy said:
Unless you take out additional "gap" insurance to cover the difference between the book value and the cost of replacement, you're going to be offered the book value for your vehicle.
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Thats not what GAP insurance is for at all. Insurers are supposed to pay out the cost of replacing the car using the medium you usually use to purchase cars.

GAP insurance is completely different, it pays out the difference between the settlement and the outstanding finance balance on the car, or if you have RTI, the difference between the settlement and what you originally paid for it.
 
I think you got greedy asking for £2500-£2750.

If taking delivery of a vehicle is expensive, raise it with the insurer. Ask them for £100 for travel after explaining there is nothing near you.
 
Terminal_Boy said:
What are they going to do?

Car insurance pays out the book value of the written off vehicle at the time of the accident based on mileage and condition.

Unless you take out additional "gap" insurance to cover the difference between the book value and the cost of replacement, you're going to be offered the book value for your vehicle.
Click to expand...

No it doesn't, insurance is to put you back in the position you were in before the incident leading to a claim. Book values are wild and varying and only used for a starter for ten if you can't reasonably replace the vehicle with the same purely based on book value pay out you haven't been put back in the same position.

They will all low ball it to start with as most people don't have the confidence to argue and just rollover. There's plenty of evidence of insurers being fined for being difficult.

I argued up several cars over my driving history about 30% additional to their first offer.
 
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