Unfortunately, was involved in an accident and my vehicle has been deemed a total loss by the insurance company.
I've only had the car two months and the insurance company have offered a fair bit less in settlement than I paid for it.
What happens now? Can I insist that the insurance company improve their offer? Or is it a case of like it or lump it?
show them present adverts for a similar condition vehicle, if you can show that you need more to put yourself in the same position then they should pay it. Usually the first offer is a try it on low amount, many people take it, ins. co. is better off.
Go to the daily telegraph site. Click on "Motoring" tab Click on Honest John link click on latest link at the top for 11th or 12th July. About one third of the way down, read one guys way of dealing with isurance companies after a van drove into the side of his wifes car.
Go to the daily telegraph site. Click on "Motoring" tab Click on Honest John link click on latest link at the top for 11th or 12th July. About one third of the way down, read one guys way of dealing with isurance companies after a van drove into the side of his wifes car.
Hmmm. That's quite a fascinating tale, but I admit it confuses me a bit. It looks as though the insurer eventually paid just because he was a pain in the arse and it was easier, rather than that he had a genuine actionable grievance. After all, your insurer agrees to indemnify you in respect of such matters, and unless I'm looking at it wrong then surely all the van company had to do was sit back and say that his insurer is in control of it, so you'll have to deal with them? Like all insurers, they just say that the value of your vehicle is X, and thats all you're gonna get.
to be honest, their first offer isnt that bad just not great....
Why? The driver is the one to sue. If he passes the bill onto his insurers that is between him and them.
If you bought it from a dealer, go to the dealer, and find as close as you can to the vehicle you got, and insist that is what they pay (minus two months wear and tear). They are supposed to put you back in the position before the accident.
Gaz
Depreciation on a new car is very large. Therefore after 2 months it is likely that the offer of "a fair bit less" that what he paid for it is correct.
Except that the car is not being sold it is being replaced on a like for like basis so the payment should be sufficient to purchase a similar vehicle of similar age.
I still have the receipt showing the purchase price of the vehicle from 2 months ago.
Its doubtful that I'd find the same vehicle to compare with at the dealer though. It was a used Fiat Punto bought from a Ford dealer.
What sort of figure would you put on 2 months wear and tear?
Used car. In fact, its 7 years old.
I still have the receipt showing the purchase price of the vehicle from 2 months ago.
Its doubtful that I'd find the same vehicle to compare with at the dealer though. It was a used Fiat Punto bought from a Ford dealer.
What sort of figure would you put on 2 months wear and tear?
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I reckon it'll be losing a good 30% pa at that age (unless you got a real bargain), so 2/12ths of 30% of whatever you paid for it would seem reasonable.
OK. So 30% of £3000 is £900 x 2/12 = £150.
30% pa seems a bit high. OK, so you're saying a car costing £3000 would be worth about £2100 after one year, £1470 after 2, £1020ish after 3 etc.Not sure if £900 depreciation in a year is a bit much. I was thinking more of £500-£600.
It worked for my wife. Don't thinkt they improved the offer much, but it was a bit.
Tiddy Ogg.
And remember, the dealer price is higher because it incorporates some sort of warranty built in, make sure the insurance company take this into account.
Gaz
OK. So 30% of 3000 is 900 x 2/12 = 150.
30% pa seems a bit high. OK, so you're saying a car costing 3000 would be worth about 2100 after one year, 1470 after 2, 1020ish after 3 etc.Not sure if 900 depreciation in a year is a bit much. I was thinking more of 500-600.
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Obviously I don't know with any certainty, and Parkers etc don't go that old (but glass's may). But my instinct is that you'd be lucky to get more than
500 for a 12 year-old punto. And that's about 30% pa from 3k at age 7. It's depressing, but that's no reason for not going head-to-head with your insurers. The only debate should be the cost of 2 months depreciation, and there can't be much between you both on that. Any "silly" offers they make should be readily shown as just that. And when you're within, say, 100 of each other, they may realise it's not worth their cost and time to continue to battle it out. Good luck and please keep us posted.
Indeed. Therefore, if it were 2 months from new then it would be replaced a vehicle with a minimum of 20% taken off the show room price not just 2 months wear & tear.
If you drive a new car off the forecourt & try & sell it straight away you'd loose 20%.
Dave F.
But try and buy a two month old car. You probably won't find one anywhere. The reason for the huge drop is that people assume there must be something wrong with the car if you want to sell it so quickly.
The FOS is available to settle the dispute if the insurer is unreasonable.
Hmmm. Big gap between reasonable but a bit low and unreasonable though, isnt there?
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