Motor car accident....insurance payout question

Dave7

Legendary Member
Location
Cheshire
My Bro was in a collision on Thursday (2 days before his holls).
The other driver shot a red light.
Its clear on his dash cam.
There is a good witness.
Police are on his side
So.........if the car is a write off and they offer him eg £2K less than its worth, what are his options? ie does he sue for the difference ?
Thanks
 

Moodyman

Guru
He should build a case for why he feels his car is worth what it is. Examples to include are:

- Mileage if low for reg plate.
- Recorded service history
- Enhancements made to the car
- Details of other cars for sale or recently sold of similar age, mileage and service history.

They always offer towards the lower end of the average price and are willing to raise if you can show your car is better than average.
 
OP
Dave7

Dave7

Legendary Member
Location
Cheshire
Good advice @Moodyman but I imagine whatever happens he will get less than replacement value.....so is there any way to recoup the difference?
 

alicat

Legendary Member
Location
Staffs
Is your brother's beef that he fears the insurers will pay him less than what is it worth or less than what it will cost to buy the same vehicle in the condition in which he bought (new for old)?

On the face of it your brother has the right to sue the driver for any uninsured losses. Your brother will have been paid the value of the car so he will have to sue for something else. That will work unless the insurer has the right under the insurance contract to sue the driver in the place of your brother to recoup 'his loss' i.e. what it paid him for the claim.
 

Cycleops

Guru
Location
Accra, Ghana
He should build a case for why he feels his car is worth what it is. Examples to include are:

- Mileage if low for reg plate.
- Recorded service history
- Enhancements made to the car
- Details of other cars for sale or recently sold of similar age, mileage and service history.

They always offer towards the lower end of the average price and are willing to raise if you can show your car is better than average.
I shouldn't mention the third one , if he has done any, modifications would invalidate his cover.
 
OP
Dave7

Dave7

Legendary Member
Location
Cheshire
Is your brother's beef that he fears the insurers will pay him less than what is it worth or less than what it will cost to buy the same vehicle in the condition in which he bought (new for old)?
.
Sorry to be a bit fick but is there a difference?
I suppose he would like to buy a similar vehicle (age, mileage etc) without it costing him.
He has only had it a few months so if eg it cost him £10K he would like £10K to replace it.
 

NorthernDave

Never used Über Member
Motor insurance is generally a policy of indemnity.

So the insurer should pay out for the car in the condition it was in immediately prior to the collision, as far as can be established, less any policy excess.

Some insurers might waive the excess if it's nailed on non-fault but they're under no obligation to do so. If they don't he can claim the excess back from the other person's insurer.

There are online guides (Glass's, Parker's, etc) who can give an ideal of the vehicle value.
If not happy with the offer he can dispute it, but to be fair if it's non fault what does the insurance company have to lose by not paying out a fair value?
 

Adam4868

Guru
Do some research on a replacement vehicle of similar spec,milage,service history ect eBay,auto traderThen you've got the evidence you need to negotiate with the insurance assessor.
Worse case scenario I once paid for a independant assessment to be carried out and managed to get what I thought the car was worth.
 

alicat

Legendary Member
Location
Staffs
Sorry to be a bit fick but is there a difference?
Yes, there is usually a difference. He might be lucky and there's no difference if he bought a bargain second hand and he hasn't done many miles. If he bought it new, then it loses money as soon as it's driven off the forecourt and the insurers won't make him better off for suffering a loss. The same applies if he has done a lot of miles since he got it.
 

Bazzer

Setting the controls for the heart of the sun.
As said upthread, car insurance isn't on the basis of new for old.
The "problem", if it can be described as such, is that the perceived value of the vehicle to the owner, is commonly far greater than its actual market value and will almost certainly be less than its replacement cost. Based upon what you have said, the only way your brother could recover the loss would be through another insurance policy. Some manufacturers and dealers, (I can only speak of knowledge of Volkswagen), offer what is an insurance policy, whereby if your car is written off within 3 years, you are repaid from this separate policy, the difference between what you recover from your own insurance company and what you paid for the vehicle.
In the meantime, your brother needs to research car web sites for details of cars similar to the one written off and have that information to hand when he speaks with his insurance company.
 

Levo-Lon

Guru
I always have Gap insurance, return to invoice.

Not sure if you can have this on a older car but ok upto 5 yrs i think.
 

Jody

Veteran
Your brothers only leverage will be finding one with the same specification, mileage, colour etc and battling with the insurance for what he can get. If you have rare options or specification then it can play to your advantage, if you can prove the money offered can't source the same specification vehicle.

Its frustrating that you are left out of pocket as someone who is not at fault. Not only the cost of a replacement car, traveling to source the vehicle but also higher insurance premiums for the next 3-5 years.

The "problem", if it can be described as such, is that the perceived value of the vehicle to the owner, is commonly far greater than its actual market value and will almost certainly be less than its replacement cost.
Some owners really look after there car and rightly have a higher opinion of their motor than the average car available. It does feel a little unfair that the insurance company is hard balling you on a payout and leaving you out of pocket when you are not at fault.
 

Bazzer

Setting the controls for the heart of the sun.
Some owners really look after there car and rightly have a higher opinion of their motor than the average car available. It does feel a little unfair that the insurance company is hard balling you on a payout and leaving you out of pocket when you are not at fault.
FWIW I agree entirely.
Mrs B has been entirely without blame for her last two cars having been written off by other drivers and we have had to take unwelcome and unplanned financial hits on both occasions, despite the cars being well maintained and low mileage. The replacement vehicle will rarely be a like for like and it does very much feel as if the driver who causes the write off suffers much less. Particularly when, as in both of Mrs B's incidents, the police declined to prosecute.
 
Top Bottom