Insurance valuation

GEM_13

Hi.

Just a question for you-when you have a crash and the car is deemed uneconomical to repair,does the pre-accident valuation the insurance company puts on the car include salvage value or will the salvage be extra?

Thanks in advance.

coylemj

When they pay you the pre-accident value of the car, they get to keep the wreck as part of an aspect of insurance known as subrogation. They will sell it for scrap value and they keep the money. You don't get that money which is I think is what you're asking.

You can of course offer to buy it from them but legally they own it.

GEM_13

Thanks for the reply.

That answers my question perfectly.The offer so is value - salvage not value + salvage.I have the option of offer minus salvage and to keep the car but i'm guessing it would be a lot of hassle trying to sell parts individually.

coylemj

GEM_13 wrote: »

I have the option of offer minus salvage and to keep the car but i'm guessing it would be a lot of hassle trying to sell parts individually.

Correct, unless you think you can economically rebuild the car or sell it for parts for a profit you're as well off to wave it goodbye.

The decision to sell it to you is theirs, it's not a legal 'option' you have by right.

From their perspective it's much tidier if they sell it into the trade. There are implications to do with consumer legislation if they sell it to you so I wouldn't be surprised if they refused to sell it to you.

Vicxas

When my car was crashed they offered me a valuation + scrappage or the market value of the car and i turn the car over to them

Seth Brundle

When my last E39 was damaged and deemed BER, they offered it to me for €500 (taken from the overall payout value) and I could keep it. I fixed the car and managed to keep some out of the final settlement.
What I was more concerned about was the value they placed on the car before the incident which initially was about half of what I eventually received. Make sure that you get a good pre-incident valuation on your car by taking some adverts from carzone, etc. (the more expensive ones)

GEM_13

It was the wife's car and she was made an offer which,when i checked around,felt was a little on the low side.I then got a call from the salvage yard where it was and they were offering 385 euro which i thought,added to the original offer,was a little better at least.

I thought,however,that this was on top of the pre-accident value.I didn't realise that it was an either or situation where the valuation included the salvage value or i could retain the car but the salvage was deducted from the original offer.