Is the Car Insurance Payout Right-on Or even Write-off

Kath Jukes, a policyholder from LV=, was involved in any sort of accident where her car was announced a write-off. She had paid a lot more than 7, 000 pounds for this and had clocked up just 16, 500 miles. LV= offered Mrs Jukes a cheque with regard to 4, 300 pounds after discovering that two cars in her area inside a similar condition cost that quantity.

However, Mrs Jukes tracked down both cars and reported that one wasn’t within her local area and also the other had been sold. Furthermore mechanics informed her that because of the low mileage of her car it might cost up 500 pounds to 725 pounds more to repair than her insurance company experienced given her.

Mrs Jukes stated: “LV= has made the entire thing enormously stressful. I can’t buy a car for its valuation in this region, especially one with such a minimal mileage. ”

LV= have since raised the total amount to 5, 000 pounds and waived the surplus.

Jonathan Lelliot, a customer from Norwich Union, has been trying to raise his insurance amount with regard to his written-off car. He had been offered 3, 000 pounds but has observed similar cars in his area available at 600 pounds to 1000 lbs more. Mr Lelliot sent photos of his car towards the insurers to show its condition however the Norwich Union have not elevated his payout.

“With two children we want two cars”, he said, “Norwich Union has been very difficult. I’m not looking to get more than I think the vehicle is worth I just want a reasonable payout. ”

Discrepancies can occur when insurance companies estimate the worthiness of a car which result in policyholders being disappointed when they get a payout because their car is actually written-off.

The valuation by the insurers does not always look at the region the policyholder lives in and the season. For instance urban areas might not have the need for Landrovers so that they will generally cost less there than inside a rural area. Cars with retracting roofs could be more in demand in milder months as opposed to the winter months.

Valuations by insurance companies are also reported to decrease because the insurer doesn’t take on board that the vehicle was in good condition.

A spokesman in the Financial Ombudsman, said: “It is expected that cars driven for several years will show signs of deterioration. We would not expect to create deductions for minor imperfections which have been the result of wear as well as tear. ”

Another point raised by disgruntled policyholders is that frequently that those who receive a cheque using their insurance company for their written-off car don’t know that if they cash it they’re accepting that amount. Consequently they’re unlikely to receive additional cheques. The advice is to cash the cheque and can include a letter explaining that cashing it’s not acceptance of the car’s valuation through the insurance company.

For those worried about decreased value of their car they are able to consider Guaranteed Asset Protection Plan. This is a kind of auto insurance that covers the shortfall between what’s paid by the insurance company for any write-off and the amount the insured originally taken care of the vehicle.