Insurance Claim

preddy

Hi,

Someone crashed into me and the claim is being processed i.e repair garage agreed price to repair with insurance company.
But ive heard theres a depreciation value insurance companies pay out as my car has now been crashed is this true?
They told me because my cars older then 3 years it doesnt apply, is this they standard or should i push it?

January

If the car is written off then you should get the amount you insured your car for. If you haven't changed the value of your car in the last three years then they may be legally entitled to pay out a lesser sum, because cars depreciate in value. For instance, my car was bought for 7000 euro this year and thats what it was insured for, next year I'll have to insure it for a lower amount, because it'll be worth a lower amount.

If you're unhappy, then push it. If it's not resolved then go to the Insurance Ombudsman.

Guy:Incognito

You'll usually get offered somewhere around the book value.Ther'll be some negotiation if you put in a bit of leg work and try prove to them you cant replace the car, like for like, for what they are offering.

preddy

Sorry the car isnt written off just damaged to the sum of 2k but ive heard that since now the car has been crashed and will be repaired but it will never be a 100% again then they pay out a depreciation fee 10-15 of repair costs!

January

Never heard anything like that before... and I work in an insurance brokers...

Del2005

preddy wrote: »

Sorry the car isnt written off just damaged to the sum of 2k but ive heard that since now the car has been crashed and will be repaired but it will never be a 100% again then they pay out a depreciation fee 10-15 of repair costs!

I've heard of this but no idea how it works, more then likely only on new cars. As for the car not being 100% after the repair. Send it back till it is. Any decent body shop can repair a car to 100%. A lot of new cars have had repairs done on them prior to sale, due to damage on the boat or transported. Only thing you have to do when selling is say it's being crashed if they ask!!

adrieanne__x wrote: »

If the car is written off then you should get the amount you insured your car for. If you haven't changed the value of your car in the last three years then they may be legally entitled to pay out a lesser sum, because cars depreciate in value. For instance, my car was bought for 7000 euro this year and thats what it was insured for, next year I'll have to insure it for a lower amount, because it'll be worth a lower amount.

Not trying to tell you your job here, but if I insure my car for 10k and it's only worth 3k then all I get is 3k. If your car is written off they will only pay out the market value of the car, not the insured value, on standard policies. The only way to get them to pay out 10k if you insure for 10k is to have an agreed value policy, which people only use for modified/classic cars.

January

Del2005 wrote: »

I've heard of this but no idea how it works, more then likely only on new cars. As for the car not being 100% after the repair. Send it back till it is. Any decent body shop can repair a car to 100%. A lot of new cars have had repairs done on them prior to sale, due to damage on the boat or transported. Only thing you have to do when selling is say it's being crashed if they ask!!



Not trying to tell you your job here, but if I insure my car for 10k and it's only worth 3k then all I get is 3k. If your car is written off they will only pay out the market value of the car, not the insured value, on standard policies. The only way to get them to pay out 10k if you insure for 10k is to have an agreed value policy, which people only use for modified/classic cars.

I know about underinsuring and overinsuring your car. But the insurance companies and brokers all have car guides which give the market value of the car that the person is driving and they'll go by that. It has nothing to do with how much the customer bought the car for.

The thing is preddy is saying that his insurance company will never pay out the full amount of a claim again (less the excess of course), i.e. if his car is marketed at 7500, he has his car insured for said sum, and he has a claim for 3000 euro, they will only pay out 10%-15% of the cost of the repairs has it has been previously damaged. That's what I've never heard of.

Musha

You would have to get a solicitor to process a claim for the depreciation value, out of pocket expenses (car hire, excess on your policy etc)

boopolo

adrieanne__x wrote: »

Never heard anything like that before... and I work in an insurance brokers...

Em, Adrianne are you sure you are in the claims department of a car insurer.

I have claimed this depreciation on two occasions. If ones car is a 'crashed car' it must be declared 'crashed' when selling. A previously crashed car is worth less than an uncrashed one. This is why you ar entitled to 10% depreciation. You will not receive this amount unless you claim it and it may even take a solicitors letter to the company.

Fact is your car will be worth less because of the fault of the other driver whose liability is insured by his or her insurance company. It is not through any fault of yours.

Regarding the age of the car. I cannot see that being of any difference, except that generally the older cars value would be less and so the claim would be less.

Take Musha's advice and call your solicitor. His letter to them should also include a bill to them for his services.

Boopolo

LegacyUser

Boopo is right - and you can get it on cars older than 3 years! You just have to ask for it - they obviously won't volunteer.

jor el

Del2005 wrote: »

As for the car not being 100% after the repair. Send it back till it is. Any decent body shop can repair a car to 100%.

Not if the chassis is cracked they can't. Superficial damage can be repaired, major damage may not.

This happened my father a number of years ago, an accident cracked the chassis of the car and he claimed for deprecation on it. He did have to hound the insurance company about it though, and assessors from three different insurance companies (there were four cars involved and a Garda who didn't really know how to deal with it) looked at the car before he got his money. It was only a few hundred pounds too I think.

Del2005

jor el wrote: »

Not if the chassis is cracked they can't. Superficial damage can be repaired, major damage may not.

This happened my father a number of years ago, an accident cracked the chassis of the car and he claimed for deprecation on it. He did have to hound the insurance company about it though, and assessors from three different insurance companies (there were four cars involved and a Garda who didn't really know how to deal with it) looked at the car before he got his money. It was only a few hundred pounds too I think.

They can repair anything back to 100%. It's just that it isn't economically viable to do on most cars. Did you ever see a restored car? Some of them are heaps of sh!t full of rust etc but because someone has the time and money they can return it to original condition.

The issue with your father was that 4 cars where involved and each was suing someone else, thats where all the assessors came from. As Boopolo and Bubby said, the insurance company isn't going to pay out unless you ask/force them.

January

boopolo wrote: »

Em, Adrianne are you sure you are in the claims department of a car insurer.

I have claimed this depreciation on two occasions. If ones car is a 'crashed car' it must be declared 'crashed' when selling. A previously crashed car is worth less than an uncrashed one. This is why you ar entitled to 10% depreciation. You will not receive this amount unless you claim it and it may even take a solicitors letter to the company.

Fact is your car will be worth less because of the fault of the other driver whose liability is insured by his or her insurance company. It is not through any fault of yours.

Regarding the age of the car. I cannot see that being of any difference, except that generally the older cars value would be less and so the claim would be less.

Take Musha's advice and call your solicitor. His letter to them should also include a bill to them for his services.

Boopolo

Read my post again, I never said I worked in a claims department.

jor el

Del2005 wrote: »

They can repair anything back to 100%. It's just that it isn't economically viable to do on most cars. Did you ever see a restored car? Some of them are heaps of sh!t full of rust etc but because someone has the time and money they can return it to original condition.

That's why I said may not. Replacing an entire chasis wouldn't really be a repair though.

alanceltic

Cant believe the amount of people on here who are offering "advice" when the have not been through the process but assume they know what is right, the OP's question was very straight forward and unless you have been there and got the T-shirt its wrong of you to offer advice for obvious reasons. Thumbs up to boopolo!!!!

UrbanFox

The basic rules are simple.

1. Insurance company claims departments are incompetent, lying, facist bastards. DO NOT believe anything that they tell you unless you can verify it independently.:)

2. If a car is a write-off you are entitled to it's market value as at the date of accident less any salvage value.

Depreciation does not arise in write-off cases.

The value for which your car is insured is irrelevant in the context of a claim against the other party's insurance.

3. Depreciation is lower with older cars.

10% is a reasonable figure for a car older than three years.

Ask for 15% and tell them that if you don't get it you will issue proceedings and they will pay for it then as well as the party and party legal costs and their defence costs.