Insurance Pay Out Valuation

[Mooncat]

My van was hit in early November and after several weeks of waiting was informed that it's a Cat S Total Loss. They sent over the Engineers Report which was done purely based on pictures sent from the recovery yard and from what I can tell they are using a Glass's Guide Retail Valuation price based on a single van that was recently sold to value my van with a mileage adjustment.

My vehicle, a 2016 Blackberry Highline 140 4Motion, sliding windows fitted to the rear and the rear doors glazed and sat on Sportline wheels (mods declared), less than 34k on the clock and totally immaculate. The 'sold' vehicle used for the valuation was described as a white van with 133k. Based on this they have offered to pay out a touch over £18k net.

From what I can see, I'd need nearer to £28k to get a similar van. As I'm not VAT registered I've asked them to confirm I would get the VAT added on top based on some information on the Financial Ombudsman website but they just keep referring back to the glass's guide. I don't think that the fact that the 'at fault' 3rd Party is insured by the same company is helping and believe there may be a conflict of interest.

Has anyone had experience of this?

 

[Dellmassive]

Geez...

We had to battle with an insurance company over the value of our family car.

And got paid out less than what we thought It was worth... Or looking for a like for like replacement.

We kept on rejecting there offers..... But had to settle low in the end.

Have you got legal cover included?.... Maybe approch them and ask for assistance.

I hope it works out well for you.

 

[Mooncat]

Yes, I have the legal and uninsured loss cover however for the valuation they want me to deal directly with the insurance company. It doesn't help that the T6 value has rocketed. I've already accepted that I can't afford to buy another T6.

 

[Bav]

Gather evidence that they have undervalued your van. Supply them with the listings of vans for sale that are similar in spec, age and mileage to yours - the more the better. If they won't budge, consider referring to the Insurance Ombudsman - they're on very dodgy ground using a dataset of 1, especially if you have a significantly larger, more comprehensive dataset.

 

[DXX]

I don't think that the fact that the 'at fault' 3rd Party is insured by the same company is helping and believe there may be a conflict of interest.

I’ve come across this but what can we do about it, my only advice is to persevere, Loss Adjusters are a ruthless breed.

 

[Crazymind]

get a lawyer, ask 35k. easy to support your case with high residual values of T6. They will get back and forth with low offers, settle in the middle, 26/28k should be reasonable.
first offer always the lowest. Hey, good try f… licensed thieves

 

[Pete C]

Do what Bav says above. Flood them with info on similar vans, but be realistic.
It wouldn’t hurt do drop the words “Financial Ombudsman” into the conversation too.

Tell us who the insurance company is too if you want.

Pete

 

[Gavinda]

Not used them my self but look like it might be useful.

Vehicle insurance Payout too low rights | Resolver UK

www.resolver.co.uk

 

[Bav]

From the FSO website...

Types of complaint we see​

A customer might make a complaint about your business because they say you:​

• haven’t paid them enough for their vehicle
• have scrapped their vehicle without telling them first

Most complaints involve disagreements about the market value of the vehicle. The market value is the price the vehicle would have sold for at a reputable dealership just before it was damaged or stolen.​

What we look at​

We use trade guides as an indication of what a fair valuation should be. We might also ask you and the customer for information, including things like:​

• independent engineer or expert reports – including any details of modifications
• copies of valuations from the guides or other sources
• a repair estimate
• evidence of pre-existing damage and what it would cost to repair it
• vehicle history

BUT, you should only get the FSO involved once you've gone as far as you cam with the insurer. Though, as @Pete C says, it wouldn't harm to name-check the FSO during discussions with the insurer.

 

[Gavinda]

Or if you've got the time and space it could well be worthwhile financially to buy back the van and strip it for parts, theyre not cheap as we well know.

 

[Chippie1]

I agree with @Bav first comment! Did you have an agreed valuation on the van out of interest?

 

[Chippie1]

I’ve only ever had this situation once and got back 3 times over what I payed for the car mind you was of a lot less value

 

[JDC]

My brother has a BMW z3 and it was written off by the insurance company as a cat s. He was gutted, he was offered a buy back at a silly sum, he bought it and repaired it for £600 and is still using it.
Defo look at buying it back if pos and repair it yourself. Worth asking, as it’s better than being without or 10k short on an equivalent.

 

[Mooncat]

My brother has a BMW z3 and it was written off by the insurance company as a cat s. He was gutted, he was offered a buy back at a silly sum, he bought it and repaired it for £600 and is still using it.
Defo look at buying it back if pos and repair it yourself. Worth asking, as it’s better than being without or 10k short on an equivalent.

I do have the option of buying it back and was thinking about sticking a T6.1 front end on as I thought it was going to be a fairly straight forward repair. I sent the Engineers Report to a local body shop for their opinion regarding repair costs and they basically told me to leave it alone as it may never drive right again and would likely cost more to repair than it was worth. I got to see it yesterday for the first time since the collision and on close inspection the front NS chassis leg has bent to such an extent that the box section has split.

I'm sure it'll get auctioned off and repaired but it's not something I'd want to be driving again.

 

[Mooncat]

Thanks for the responses and advice on this. It sounds like what I've been doing has been correct - there aren't many similar 4Motion vehicles for sale but I have detailed what there is and what is different between them and my van. I've also suggested that even getting a base figure from a non 4Motion Highline will get a better sample size as there are more of those for sale at the moment and then adjusting the price for mine being the 4Motion.

I never had an agreed value on the van but it was insured for £22k net (I think they always use a net value for commercial vehicles) and if they used that figure and added the VAT it wouldn't be far away the cost of a similar vehicle. It was due renewal in December and I'd already spoken to the broker about increasing the insured value. The bottom line is insurance companies usually have a caveat about the pay out value being the market price so any declared valuation unless agreed is pointless.

I expect I'll be speaking to them in the New Year as the hire vehicle they've given me is costing about £2.5K a month so it's in their interest to get this sorted out sooner rather than later.

 

[Linoleum Bonypart]

You can have £000s of unseen additions to a van …. List them and speak to the independent engineer …. Mine was written off last November … i was paid out in two months

 

[Bav]

My brother has a BMW z3 and it was written off by the insurance company as a cat s. He was gutted, he was offered a buy back at a silly sum, he bought it and repaired it for £600 and is still using it.
Defo look at buying it back if pos and repair it yourself. Worth asking, as it’s better than being without or 10k short on an equivalent.

If you buy back and repair, the vehicle will still be on the write-off register and, as a consequence, will lose around 25% of its market value. That's not necessarily a problem - just something you need to be aware of.

 

[Bav]

Thanks for the responses and advice on this. It sounds like what I've been doing has been correct - there aren't many similar 4Motion vehicles for sale but I have detailed what there is and what is different between them and my van. I've also suggested that even getting a base figure from a non 4Motion Highline will get a better sample size as there are more of those for sale at the moment and then adjusting the price for mine being the 4Motion.

I never had an agreed value on the van but it was insured for £22k net (I think they always use a net value for commercial vehicles) and if they used that figure and added the VAT it wouldn't be far away the cost of a similar vehicle. It was due renewal in December and I'd already spoken to the broker about increasing the insured value. The bottom line is insurance companies usually have a caveat about the pay out value being the market price so any declared valuation unless agreed is pointless.

I expect I'll be speaking to them in the New Year as the hire vehicle they've given me is costing about £2.5K a month so it's in their interest to get this sorted out sooner rather than later.

An agreed value policy is always what I would recommend for any vehicle that you value higher than the market value. You mention £22k, and that may be the number you recorded as its value when you took the policy out, but that number is meaningless when it comes a total loss - an insurer will always use market value unless you have an agreed value policy.

 

[Linoleum Bonypart]

Be careful they don’t base the value on a panel van etc

 

[Bargy62]

Be careful they don’t base the value on a panel van etc

thats why i go with agreed valuation some insurance companies ask how much the van is worth ie 35k but say they will only pay market value bad news if you've had it converted from a PV you get PV value not converted value