Help - Insurance company valuation is very low

dilallio

Hi,
I was involved in an accident (covered by comprehensive insurance) and I've received a letter from the insurance company offering me a low price for my car which was deemed written-off.

I purchased the car last February.

It's a 2006 Ford Focus 1.6 Petrol Automatic.

When I bought it I paid €6,250. At the time, I checked the market value using the revenue VRT calculator, and the OMSP was €6,230.

The current value 8 months later according to the same revenue VRT calculator is now €5,921.

I also spent approx €700 on the car since, on 4 tyres, full service, and timing-belt replacement. I have receipts covering all of these as well as the purchase of the car. The tyres were bought 2 days before the accident.

The insurance company are telling me that the pre-accident value of the car is only €5,000 euro.

They arrived at this value by looking at the 4 lowest quotes from a SIMI dealer search of Carzone.ie. None of these 4 had a current NCT (garages said they would NCT the car if they get a buyer). I pointed out to the insurance company that comparing a car with a current NCT to cars without is not a valid comparison.

Does anyone know what the book value of a 2006 Focus 1.6 Auto Petrol is? I would have though it would be very close to the OMSP from the revenue site.

Also, can anyone give me any suggestions on how to deal with the insurance company.

Thanks,
dilallio

drunkmonkey

dilallio wrote: »

Does anyone know what the book value of a 2006 Focus 1.6 Auto Petrol is? I would have though it would be very close to the OMSP from the revenue site.

I don't know the answer to your question on the Value, but if the revenue say that's what it's worth the Insurance company should have to abide by that valuation. (I know that's not going to happen but it should be law)

Cuddlesworth

Get your own insurance assessor. For example http://www.das.ie/main.asp

What it costs is far less then what the insurer will try to screw you out of.

bigneacy

Ford Focus

2006, 1.6 Petrol, Automatic, 78k, NCT'd. Just been serviced. Spend the <€650 change on 4 new tyres and some second hand alloys, get a bit more off and you can even replace the timing belt if needs be.

Gophur

dilallio wrote: »

Hi,
I was involved in an accident (covered by comprehensive insurance) and I've received a letter from the insurance company offering me a low price for my car which was deemed written-off.

I purchased the car last February.

It's a 2006 Ford Focus 1.6 Petrol Automatic.

When I bought it I paid €6,250. At the time, I checked the market value using the revenue VRT calculator, and the OMSP was €6,230.

The current value 8 months later according to the same revenue VRT calculator is now €5,921.

I also spent approx €700 on the car since, on 4 tyres, full service, and timing-belt replacement. I have receipts covering all of these as well as the purchase of the car. The tyres were bought 2 days before the accident.

The insurance company are telling me that the pre-accident value of the car is only €5,000 euro.

They arrived at this value by looking at the 4 lowest quotes from a SIMI dealer search of Carzone.ie. None of these 4 had a current NCT (garages said they would NCT the car if they get a buyer). I pointed out to the insurance company that comparing a car with a current NCT to cars without is not a valid comparison.

Does anyone know what the book value of a 2006 Focus 1.6 Auto Petrol is? I would have though it would be very close to the OMSP from the revenue site.

Also, can anyone give me any suggestions on how to deal with the insurance company.

Thanks,
dilallio

€5,000 is not an unrealistic value for your car. Anything you have spent on it since you bought it will add zero value and, in fairness, an NCT cert is only worth €50 (the cost of a test).

However, that said, the Insurance companies do negotiate on these things and the €5,000 should be treated as their opening offer.

_Kaiser_

Who was liable in the accident? Whose insurance is paying out?

I had an accident years ago where I had the car 6 months and the other party was deemed liable. I only had the car 6 months and was initially offered 1.5k less than I paid for it (the infamous "book value" that they've offered you) which I absolutely refused to accept on the grounds that their client was at fault, this had been agreed, and therefore their job as far as I was concerned (and I told them as such) was to get me back on the road in the condition I was beforehand - not with a written-off car and over a grand out of pocket!

Took some "venting" and escalating (don't be afraid to push hard regardless of what they tell you about no-one being available etc - INSIST on speaking to a higher level if you're not getting any joy from the person you're dealing with!) but in the end (after only 3 weeks I might add!) I got a cheque for the full amount and an apology for the inconvenience

dilallio

Gophur wrote: »

€5,000 is not an unrealistic value for your car. Anything you have spent on it since you bought it will add zero value and, in fairness, an NCT cert is only worth €50 (the cost of a test).

However, that said, the Insurance companies do negotiate on these things and the €5,000 should be treated as their opening offer.

Thanks Gophur and everyone who has replied.

I realise that the NCT cert is worth €50 but it's also worth the value of knowing that the car is roadworthy, which my previous car was.
There is a possibility albeit unlikely, that these cars could fail the NCT, so I think it is only fair that the insurance company compare like with like.

I called into my local ford dealer (Motorpark Galway) at lunchtime, and one of the sales team checked and told me that the app which they use gives the book value at €6,500. To be honest, I expected this to be lower - around 6K or slightly under.

I will write back to the insurance company and give them this information and see what they say.

Thanks again everyone for your replies.
dilallio

_Kaiser_

dilallio wrote: »

Thanks Gophur and everyone who has replied.

I realise that the NCT cert is worth €50 but it's also worth the value of knowing that the car is roadworthy, which my previous car was.
There is a possibility albeit unlikely, that these cars could fail the NCT, so I think it is only fair that the insurance company compare like with like.

I called into my local ford dealer (Motorpark Galway) at lunchtime, and one of the sales team checked and told me that the app which they use gives the book value at €6,500. To be honest, I expected this to be lower - around 6K or slightly under.

I will write back to the insurance company and give them this information and see what they say.

Thanks again everyone for your replies.
dilallio

Try and get a printout on headed paper from the dealer confirming this if possible.

MugMugs

VRT Calculator probably notches it up whereas the Insurer notch it down.

What you do is this.

Write to the Insurer making a counter offer.

Enclose copies of three vehicles with the exact same mileage and additions as yours had (factory spec stuff not tyres)

Point out they all have a valid NCT and new tyres.

Request their acceptance of this and a cheque for the fair amount you've calculated.

If they refuse this then write back, ask them for a final response on the matter and bring it to the ombudsman.

This can take some time so you may have to accept their offer on a without prejudice so as to save costs basis and ensure the ombudsman is aware you've had to make up their shortfall while waiting on him to adjudicate on the matter.