Insurance question

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127
A friend of mine has just had her car written off in a non fault accident (she wasn't in the car). She has just received a cheque as a settlement, however the insurance is saying the car is worth £4000 less than the actual value and they have further reduced the amount by the salvage value. Is this correct?

She now has to wait for a salvage company to recover the car and they may or may not pay the estimated amount the insurance company has come up with?

She now has 7 days to buy a new car but is currently about £10,000 out of pocket. This all seems crazy to me.
 
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2,700
You'd think your friend would have taken out gap insurance if the car is worth over £5k.

But yes insurances often offer out less than it's worth to the owner.
 
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127
I thought gap insurance was to insure the difference between any finance on the car an the current value? As there isn't any finance, not sure this would have helped.
 
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2,700
It's not finance related, it covers the difference between purchase price and 'market value', I had this on a Leon Cupra R which I paid cash in full (£6500 at the time), when it was written off a year later the insurance wanted to give me less than £3k for it. GAP made up the difference.
 

DAN@ADRIAN FLUX

Approved Trader
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125
Hi,
Is there any reason why the insurer has paid out a lot less than what you feel the market value of the vehicle? Normally if you do disagree with the insurer's valuation they will ask for you to supply proof to back up any request for an increase in the offer.
Regards,
Dan.
 
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127
Does this mean your car dropped £3.5k in a year or was it the insurance company pulling a fast one?

I have checked and she doesn't have Gap insurance.
 
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2,700
What they deem to be its market value may have. Depends how many miles the car did in a year and a lot of other variables. Best your friend can do is tell them they're not happy with the valuation.
 
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127
She has now accepted the payment. The insurance company wouldn't increase the value of the car but said they made a mistake with the salvage value so have increased that a bit. She is going to take out finance on another car until the second cheque arrives.
 

DAN@ADRIAN FLUX

Approved Trader
Messages
125
She has now accepted the payment. The insurance company wouldn't increase the value of the car but said they made a mistake with the salvage value so have increased that a bit. She is going to take out finance on another car until the second cheque arrives.
Hi,
Glad you got it sorted satisfactorily in the end.
Regards,
Dan.
 
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