Write off and the Value car was insured for

tandcapply

Hi All,
My car was recently written off due to a crash.
The other party's insurance firm will pay as I wasn't to blame.

I was stupid enough to value my car with my insurance company for lees than what I've paid for it, I'm probably the only one who does that.

My question is, will the other party's insurance company pay me based on the value registered with my insurance or are they likely to pay market value which s what I paid for it.

Also, can and will insurance company discuss and request that information?

TIA

colm_mcm

Market value, maybe you overpaid for the car and will find another similar one for less money.

marzic

the market value applies, the value you gave is only relevant to your insurance quote with your own insurance company.

what year/make/model is the car? if you dont mind me asking.

slimjimmc

marzic wrote: »

the market value applies, the value you gave is only relevant to your insurance quote with your own insurance company.

what year/make/model is the car? if you dont mind me asking.

It's of no relevance to third party claims but had the OP found himself in situation where he was claiming total loss against his own policy then the insured value could be very relevant. For example if you are under-insured with Liberty Insurance they will reduce the pay out accordingly.


From their Car Insurance Policy Booklet at http://www.libertyinsurance.ie/car-insurance/forms_documents.html

If you have insured your vehicle for less than the current market value, we will reduce the amount we pay you in line with this.

arthur daly

The value only matters if you wrote your car off that will only pay that amount but if someone else writes you off it has to be market value

galwaytt

arthur daly wrote: »

The value only matters if you wrote your car off that will only pay that amount but if someone else writes you off it has to be market value

Kinda.
We've just spent over 9 weeks in "discussions" with both our insurer and the liable third party's insurer and we stuck to our guns.

The insured value isn't cast in stone, and in our case our insurance company offered more than the insured value when I put the case to them. Eventually. And it still wasn't enough.

We still weren't happy though as we couldn't replace our car for that amount either. So we did not process the claim through them at all, and dealt directly with the 3rd party's insurer and we settled on a better sum.

Our experience has taught me thus: your insurer has no interest in you at all, only closing off the claim on their books and are quite happy to settle for an inferior amount, even when ultimately it isn't costing them a cent (3rd Party admitted liability).

Also, NCB protection a must, and legal cover a good idea if it gets ugly. We had to do a lot of legwork, phone calls and emails but there was no way we were accepting a material loss when we were not at fault irrespective of what "normally" applies.

And as I have learnt: market values can rise, too.

tandcapply

Thanks all for your reply.