Insurance question- "market value"

[Passionforangling]

I currently own a fairly newish Defender and last week some scrote nicked the spare rear wheel. Normally I back it up to within a gnats whisker of the house wall but on the one occasion I didn't, within 48 hours it had gone😂

 

I did briefly look at claiming on the insurance after a main dealer quoted just over £500 for a replacement, including a new set of locking wheel nuts because they can't sell one on its own. After I picked myself up off the floor, I researched second hand and found a perfectly acceptable replacement for £150 ( still hurts though to think of the thieving ***** that nicked it)

 

Anyway, to the point.

 

I read my insurance and looked at the wording which said that in the event of total loss they would pay "market value" . As Defenders are not made any more they are going up in value and I noticed at the aforementioned main dealer that they were selling one almost the same as mine for £7000(!) more than I paid for mine a year ago.

 

I phoned the insurance company to try to get some clarification on the term "market value" but the young lady wasn't very clear and was unaware that Defenders had ceased production.

 

So, if the worst happened do the PW experts think I would struggle to convince the insurance company that the car is worth a lot more than I paid for it? I used to have a historic Series 3 which I had insured on a guaranteed valuation policy but I'm unsure if such a thing exists for more modern vehicles.

 

I'm just a little concerned that as things are so vague in the wording and the lady on the phone was also very vague that I could end up having a big row if it disappeared.

[four-wheel-drive]

I would think there market value would be the average price that trucks like yours are selling for at the present time or a bit less I do not now about the direct line thing where they get you another one to replace it if you do not want the money.

[scutt]

Don't know if this helps but I had a high cap that was written off the loss assess offered me a daft price so I contested it by producing current adds for the same vehicle showing the real market value to replace this vehicle.

[four-wheel-drive]

moved to another section.

Edited July 15, 2016 by four-wheel-drive

[robbiep]

Market value is exactly that - what you can purchase an equivalent vehicle for, on the open market.

 

Basically, if you disagreed with their offer in the event of a write-off, you would produce adverts for similar vehicles in similar spec / mileage, and show that market value was more than they quoted.

If they still disagreed, there is an ombudsman who deals with such matters. Basically, you and the insurance company would be expected to provide documentation to back up your valuations (so for you, again, adverts of cars for sale), and they decide where the value really lies.

[BrowningB525]

I currently own a fairly newish Defender and last week some scrote nicked the spare rear wheel. Normally I back it up to within a gnats whisker of the house wall but on the one occasion I didn't, within 48 hours it had gone😂

 

I did briefly look at claiming on the insurance after a main dealer quoted just over £500 for a replacement, including a new set of locking wheel nuts because they can't sell one on its own. After I picked myself up off the floor, I researched second hand and found a perfectly acceptable replacement for £150 ( still hurts though to think of the thieving ***** that nicked it)

 

Anyway, to the point.

 

I read my insurance and looked at the wording which said that in the event of total loss they would pay "market value" . As Defenders are not made any more they are going up in value and I noticed at the aforementioned main dealer that they were selling one almost the same as mine for £7000(!) more than I paid for mine a year ago.

 

I phoned the insurance company to try to get some clarification on the term "market value" but the young lady wasn't very clear and was unaware that Defenders had ceased production.

 

So, if the worst happened do the PW experts think I would struggle to convince the insurance company that the car is worth a lot more than I paid for it? I used to have a historic Series 3 which I had insured on a guaranteed valuation policy but I'm unsure if such a thing exists for more modern vehicles.

 

I'm just a little concerned that as things are so vague in the wording and the lady on the phone was also very vague that I could end up having a big row if it disappeared.

It may be worth looking at a agreed value policy on renewal.

[Fuji Shooter]

It may be worth looking at a agreed value policy on renewal.

 

Agreed - this is the best option. I have just changed my Series 3 to an 8K valuation and based on photographs and bills there was no question about it.

[sportsbob]

I would disagree with the agreed valuation unless you agree on a value that is higher than it is worth and here`s why. A few years back I had a claim as a result of some fool undertaking me on a bend and clipping the side of my 4x4, the resulting damage was £1100 worth. The insurance company said they would right my truck off and give me £700 for it. After laughing until I almost wet myself I picked myself up off the floor and reminded them they would need to pay market value or settle the claim. The y robustly argued this until I read them the law regarding market value. The law is pretty much like this, an Insurance company must put a fair replacement value on a vehicle taking into account seasonal and regional variations and also it gives an example that you would expect to pay more for a 4x4 in rural areas and also in the winter. Well firstly I called the insurance and with there recorded system I asked what they considered local to me and the answer was 25 mile radius I then asked if it would be reasonable to cover my expenses for travelling further afield if I could not get one locally and with caution they said yes. I had already found several 4x4`s the same as mine dotted around the country one of which was identical spec and colour and it was £3000, I even found another with no nudge bars at £2700. We had already in the recorded conversation agreed that the optional extras fitted which were declared had the effect of increasing the value so basically they were both £3000. Further to this they were both hundreds of miles away and so qualified for the extra payment due to the distance so there £700 was a little off the mark. They very quickly decided to repair my 4x4 but as it was my right to insist on settlement in lieu of damages I requested a cash payment instead to which they said as the repairers are VAT registered they would not pay the VAT element. As I am VAT registered I sent them an invoice and made them pay me the VAT element just to be awkward so I got my £1100 and spent £30 on a second hand wing in the same colour and spent the rest on a new gun some shells and lots of fun. So if you know how to play the system you can get a good settlement.

[marsh man]

That was brilliant sportsbob , getting one over the insurance company deserve a medal.

 

Hopefully I don't , but if I ever need your help I would be more than happy to supply your cartridges to go with your new gun

[Davyo]

Insurance companies are just legalised theives.Couple of weeks ago i woke to find my rear window had been stolen.STOLEN NOT BROKEN OR CRACKED,the rubber seal had been cut away with a knife so that was also damaged.The police came ect,i phoned insurance and they said i had to use windscreen cover £75 excess but they wouldnt cover the seal another £75.I said its been stolen and id like to make a claim under what it is i have a crime number and everything.They said it would be cheaper?? So they wanted me to pay £145 when i have protected NCB with only a £50 excess.After a week of arguing and only having some plastic as a window i paid the £145 and took the issue up with the onbudsman.Still waiting for it to be resolved.Fact of the matter is 'it doesnt matter how good your insurance claims to be on paper' its when you try to make a claim you find its a crock of poo.

Tesco insurance

Edited July 17, 2016 by Davyo

[walshie]

Insurance companies are obliged to put you back in the situation you were before a theft/accident. If the money offered doesn't put you in that position then they aren't keeping their part of the bargain.

[four-wheel-drive]

I remember some years ago a chap who lived across the road from me went off to France on holiday in his two year old Range Rover well they had a crash someone went into them and they had the truck towed in to a garage what they did not now was at that time French law said that by having it towed in by that garage they had to rite to do the repairs.

 

Well it turned out that the chassis was bent and it would need a new one the garage insisted on doing it in the UK it would have been scrapped in the end it cost the insurance company more than it would have to give him a new one.

[four-wheel-drive]

Another thing that annoys me is this cat C writ off thing that they like to do if you want to repair the damage yourself to my way of thinking a second hand plastic bumper or wing is just as good as the original if it was mechanical parts that affect the safety of the car/truck that is a different but to make it a C just because the parts are expensive seems all wrong to me.

[sportsbob]

Another thing that annoys me is this cat C writ off thing that they like to do if you want to repair the damage yourself to my way of thinking a second hand plastic bumper or wing is just as good as the original if it was mechanical parts that affect the safety of the car/truck that is a different but to make it a C just because the parts are expensive seems all wrong to me.

I avoided the cat C or D thing by taking "settlement in lieu of damages". If the vehicle is written off and you agree with the insurance company to keep the vehicle for the salvage value then you get a category, If you accept a payment as full and final settlement in lieu of damages then the vehicle should not be written off because you have been paid compensation for the damage.

 

Now a crafty move is to accept a payment that is lower than the vehicle value therefore you end up with no cat C or D which reduces to value of a vehicle and increases the insurance premium as the vehicle has been subject to a total loss. You then add the money to whatever you can sell the vehicle for without a marker on it and again end up quids in.

Edited July 18, 2016 by sportsbob

[Vince Green]

We have had this argument quite a few times. When you insure a vehicle you are asked the value say £5000. They issue a policy and calculate a premium based on that valuation so it becomes a contract.

 

Fast forward a few months and some idiot writes the vehicle off for you. The insurance company will they try to say it was only worth £2000 but it is a monumental bluff on their part. The contract was for £5000 and they accepted a premium based on that valuation.

 

It has required a solicitors letter to point out the finer aspects of contract law to them, but we have always had the full insured value back. Make sure you keep all the paperwork when you insure, especially the valuation.

[norfolk dumpling]

Keep your value up to date ie if you paid £5k but because of rising values it's now worth £7k tell your insurers. Most reputable insurers will acknowledge raising value and true replacement costs.