Insurance Claim - Negotiating Value

littlejukka

I've made a claim for theft on a motor policy. they've offered 1500 and i've looked into it and to replace the car with a similar model, spec, mileage and condition, i'd need to spend at least double that, so i've rejected the offer immediately.

does anyone have any experience that they could share of negotiating the value of a claim? i'm not sure what rights i have or what comeback i have to go to arbitration if i'm not happy with the way my claim is being handled.

pow wow

They use guides (like Glass's in the UK) to generate a value for x type of car in x condition . Usually the policy will state that the replacement value is to be determined by them in the event of a claim.

Was yours modified and if so did you tell them about the mods when you insured it? The fact you'd need 'double' their offer seems a bit much, ask them for the facts they're using to determine the value and if then you genuinely disagree, haggle some more.

littlejukka

it's not modified, just well specced. it's a UK import so it had more extras than usual and had low mileage. i can't find a similar car for 1500, so i'm left out of pocket if i want to replace it. i was originally quoted based on a value of 3000 euro, i can't accept that they can just make up some figure and i have to accept the offer.

Starmix

From what I can make out in relation to insurance is that they will offer you something in the beginning to see if they can get you to accept that offer and it's only when you argue the offer they will give you more.

Only yesterday I was dealing with an insurance claim. I was involved in an accident where another car crashed into the back of mine. I was claiming on their insurance for the repair of my car (a quote for €2,000) and they deemed it a write off and offered me €1300. I did not accept it, and argued that my car was worth more than that and if I accept their offer of €1300 I would be out of pocket for something that was caused by their client. I found 2 quotes from the internet on cars of the same spec and sent it to the insurance company, completely refused to accept anything less than the repair cost and they then came back to me with an offer to pay the full repair value.

The moral is, don't accept the first offer. Get quotes off the internet for similar specs as your vehicle, for prices shown to be €3,000 plus. If your car was insured for €3,000 (double the amount of €1500 you said) then you should be receiving that amount. Why would we bother having our cars insured at all if we don't get the replacement value. Say you will also be seeking advice from your solicitor in relation to this.

littlejukka

cheers for that starmix. i've found a load of similar cars on carzone and autotrader for 2800 up to 4000, and i've sent in a fax outlining the basis for my claim with these references.

it bugs me so much that at one end the insurance companies have people whose sole job it is to squeeze as much money out of you as possible by way as a premium, and then they have a whole other section whose job it is to give you as little as possible on any claim. i'll happily mention solicitors and arbitration if i'm not satisfied.

Elessar

I don't know the legal rights here, but afaik, you're only insured up to the current market value of the car, regardless of what figure you insured it at. I.e. if you insure a car for 30k but its only worth 20k when you claim, thats the max they'll give (minus their attempt to squeeze you as much as possible)

I sure hope I'm wrong though.