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12 May 2008, 11:43

Car insurance payout

Q&A

Added: 21 Jan 2008
Last update: 21 Jan 2008

Question

I have a Rover 216 Coupe with 85,000 miles on the clock. Two years ago a lorry went into the side of me and although there was only bodywork damage the car was considered beyond economical repair. I received £1,200 (£1,500 less £300 excess) for the vehicle which I used to repair the car myself. After the repairs the car looked as good as when it was new. Recently someone crashed into the other side while it was parked denting the drivers door and the section behind the drivers door. My current insurer (more than) have said that this is beyond economical repair and are now valuing the car at £550 and are also stating that if I want to buy it back it will cost me £126.50 (more than 25% of their valuation). The initial valuation seems incredibly low despite its previous history and the buy back price seems incredibly high (especially as the vehicle is in my possession and would cost them more to collect). Is this a usual situation with a car that has previously been in a crash?

ps. they were more than happy to insure the vehicle for £1,500 when I took the policy out even though I told them about the full history.
 

Answer

Hello,

That sounds like half a rip-off to me. Assuming the repairs were properly completed and the car is in genuinely it is worth £1,000 - £1,400.

The buy-back price seems OK though. Buying the car back and having it repaired, is usually the best thing to do in these situations.

You need to make a formal complaint, which the company has 8 weeks to deal with. If they have still not made a sensible offer then you should refer it to the Financial Ombudsman Service on 0845 080 1800.

If it were me, I would ring the insurer up, with a copy of Auto Trader (and perhaps a Used Car Expert Price Guide!) and ask to be put through to a supervisor.

I would politely give them examples of the price in the guide and of cars for sale. If they don’t budge…. I would scream at them until they agree to a fair payout.
 

Keywords: car insurance claim, car insurance problem, car insurance premium, car insuracne car value, car insuracne payout problem

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