Don't be a motor insurance victim

captainpat

So many stories about inflated motor insurance claims. So many images of people with "whiplash" after minor tips. Images of people in neck braces, jumping up and down after a "settlement out of court".

We are used to the above, and assume that the image portrayed of the "honest" insurance company being ripped off by "victims" and their legal accomplices by the media is true. Maybe it is, but the insurance companies are making up for these losses by squeezing the small claims, where the victim has not got the time or inclination to go that route.

I had my car rear-ended a few weeks back. I had no fault, but I now am €2,000 worse off, I may have lost MY no-claim record, and I was left without transport as soon as I was made a bad offer for a settlement.

The Insurance company of the offending driver will (eventually) provide a "pre-accident value" where they judge that your car is a write-off. This, they claim, is the value placed on your car, including all relevant factors such as age, condition, mileage, months tax left. They obtain this value from a "qualified motor engineer" which they pay. In my case, this value was up to €2,200 less than the calculated value from the Publishers Car Sales Guide, the recognised source for valuation of cars used by the motor for valuation purposes (not sales pricing). I had the calculated figures quoted to the Insurance company by the Manufacturer, but they refused to consider them, as they were not from a "qualified motor engineer". I was invited to provide such a qualified opinion, at my own expense, which they might consider.

By the time they had reached this position, they had withdrawn the use of a substitute car they had provided. I was left with no transport, so needed to settle in order to arrange to buy another car. I haggled some more, and managed to get an additional €500 over their original offer, which I then reluctantly accepted.

I then discovered that they would not pay the agreed amount, but only that amount less the "salvage value" they had arranged with a Breaker of €1,000. I was told that it was my responsibility to deal with this dealer, they would pay only the nett amount. I visited this dealer to arrange for finalising the deal, and was informed that the car was not being scrapped, and I would not be able to get residual motor tax back. Since I had paid almost €500 for a year's tax only 9 days before the accident, I was not pleased.

My own insurance company, who were helpful, even though they were not directly involved, advised that this was not normal practice, and that cars were only disposed of for scrap when written off by them. I contacted the other insurance company again, who denied that they were selling my car with the tax included. When I quoted the dealer's words, I was put "on hold" for a few minutes. Then I was told that the original pre-accident valuation given included residual motor tax, and that they had the right to negotiate a salvage price with a dealer, which I could take or leave. I had accepted their latest offer on that basis. So the €1,000 salvage offer from the dealer included 11 months of a €484 annual tax residue. Since he was not scrapping the car, it was clear he could repair and sell it profitably. I was no offered such an opportunity, which I would have taken.

So, I took their reduced cheque, bought another car, and will have to tax this again next month. I have not yet concluded the transfer to the dealer, so I might have some chance of improving the position a little. Does any canny motor repair person wish to offer me €1,500 for a 1999 Alfa-Romeo 146, 30,000 miles only, two new front Pirellis (€200), taxed to end March 2005, with left rear damage which probably could be fixed for €2,000? Book value €6,900-€7600? (including tax).

A final dose of poison. While I had the replacement car during the first week of this disaster, I scraped it on a pillar in a car park. Small dent, paint scraped. After returning it (with warning of the damage), I was given an estimate of €1,188 for a new door. The car replacement company are claiming against me on the temporary Comprehensive insurance which I had to arrange for that car and pay for, (on my policy), although it was refunded. I will have to pay the Excess charge of €380 and probably lose my no-claims bonus next renewal. Perhaps better than €1188, but I will be stuck for three years without room to move.

If I have any such misfortune again, I will get a neck brace and head straight for a solicitor's office. More fool I for not doing it this time.

I got my "new" car on Friday. It is the same model, smaller engine, similar value to the previous one. I am happy with it, and to get this moan off my chest! Take care out there, don't get hit from behind, and let a solicitor handle things if you do. :mad:

If this is not a good forum for this tale of woe, please mod transfer me, as I would welcome advice or commiseration.

Sleepy

Sorry to hear about that Pat. You got done for your own honesty. You should never have admitted to the scrape.

Personally I have a decent enough job but as a 23 year old there's just no way I could afford to run a car in this country without sacrificing my entire social life so until the European insurance companies get in and offer some real competition I'm on public transport.

spongebob

Bad luck. I dont know the ins and outs of Insurance company practise but I think you shoud name the ones who insured the guy behind you as they probably do this to their own customers all the time.

BTW had you transferred 'your' insurance to the rental... ? Thats a good reason not to . I had a hire van once where I coulda saved €30 or so by transferring my insurance to it. I did not, taking the garages own insurance, and some prick sideswiped it in a car park. Lucky it was not on my insurance as the rental company themselves made the claim for it and not me.

M

whosurpaddy

Originally posted by Sleepy
Personally I have a decent enough job but as a 23 year old there's just no way I could afford to run a car in this country without sacrificing my entire social life so until the European insurance companies get in and offer some real competition I'm on public transport.

ditto. id like a car, but theres no way i could afford to run one and pay the kings ransom id be charged for insurance

captainpat

Don't want to turn this into a Soap Opera, but am driven to unburden. I sympathise with the under-30s who should be the main drivers with the best appreciation of driving, but that's the strokes now, folks. I paid €820 p.a. insurance for 3rd pty fire/theft on an Alfa-Romeo hatchback, admittedly with a 1.8 Twin-Spark engine, but I'm old (61), so I should get a little chance, even if I'm poor. I had it fairly well organised, just affordable loan, insurance, tax. Then I got hit by a Lady Driver who could not see me after leaving her drive 50m behind me. Now I am €2k down, lost my no-claim (my fault this, on the replacement car. Although I only thought it was a scrape on the door!).

I have paid up for the Excess Charge for the anticipated claim (€380), and am being cheerful in the "new" car. While paying up, I was asked who my insurers were, as the garage repairs manager was a bit puzzled as to why I should have to travel all around to deal with the Salvage Merchants, and even to pick up my cheque. When I told him which Insurance company I was claiming from, he said that they normally do a full service, acting as intermediary with Salvage guys etc., and had it all sorted within a week, and paid up a cheque no problem. I ended up without transport for a week, and had to borrow a car, get lifts and !!go on buses!! But I was not insured with the said company, so I was the enemy, to be treated as such.

Anyway, I'm getting through to daylight again. There is the possibility now of two better offers for Salvage of my loved old Alfa, and I might even get enough extra to tax the new one, which is a 00D, one year newer, and I have a sun-roof, and some boy-racer trim on it, even with a smaller engine.

I have never heard of an insurance company treating a 3rd-party claimant worse than their own Comprehensive customers, although this seems like a case. For paranoid reasons I have refrained from mentioning the names of any organisations involved, although I will be happy to respond to a PM if you want. If anybody has had a similar experience, I'd be curious to hear of it.

You should have seen the looks on the Repairs Manager and the Proprietor of the garage who were holding my damaged car when I told them the Salvage Offer arranged by the insurance company. Despite being almost agents of the company, they jumped at the opportunity to make me a better offer.

Last piece of black humour: My assessed bill for a door scrape was €1188.47 incl labour €594 and vat. This was a Garage bill, but was (surprise!) confirmed as valid by the same "qualified motor engineer" who had assessed my car's Pre-Accident Value as up to €2,200 less than its commercial value. I should have had one of these guys on my side. The Salvage value of my car was assessed as less than the repair cost of a door scrape.

Again, the bottom line: go to a solicitor even if you are not at fault. You would if you were at fault, and the insurance companies are used to dealing with the Legal Profession, who have books of phrases for "fornicate elsewhere" and can use them to your advantage.

Another long one, sorry, but it's coming to an end.