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Car Insurance 'write off offer' question???


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Hi,

 

Can I put this question out there. My nephew has been told by their car insurers that after an attempted theft of their vehicle and subsequent damage it is now deemed beyond economical repair. Fine so i have a question:

 

If the vehicle is taken back by the owner after settling with insurers and then repaired privately and made 'road worthy' is the vehicle then classified as a write-off for own insurance purposes? can i get some advice here please?

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cont'd ... My nephew has been told that the cost of repairs to the vehicle following the attempted theft is in excess of the value of the vehicle. However he can retain the vehicle and have it repaired elsewhere and they settle the claim at ££££ less excess cash in lieu of repairs.

 

or:

 

Only complete one element of the repair and reduce the excess to zero (£0.00)

 

Any thoughts or advice out there please??? ... just a little confused as to what to advise next.

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If they settle it as a write off, the car becomes the property of the insurance company. Therefore, I am a little confused as to the nature of the question.

 

The simple answer would be that he should follow whichever action places him in the best financial position....however, I assume that there is something to this I am missing, as obviously you wouldnt have bothered posting had the answer been so simple!! :)

7 years in retail customer service

 

Expertise in letting and rental law for 6 years

 

By trade - I'm an IT engineer working in the housing sector.

 

Please note that any posts made by myself are for information only and should not and must not be taken as correct or factual. If in doubt, consult with a solicitor or other person of equal legal standing.

 

Please click the star if I have helped!!

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If they settle it as a write off, the car becomes the property of the insurance company. Therefore, I am a little confused as to the nature of the question.

 

The simple answer would be that he should follow whichever action places him in the best financial position....however, I assume that there is something to this I am missing, as obviously you wouldnt have bothered posting had the answer been so simple!! :)

 

I'm sorry if the question is confusing to you ...

 

The loss-adjustor has advised my nephew that the cost to repair the damage exceeds the value of the vehicle (more than 7 years old) so has deemed it a 'insurance write off' ...

 

Option 1) The car has been offered back to my nephew for a nominal amount less the insured book value. So let's assume the vehicle is worth 2k ... less the excess, less the nominal value (200?) The diff my nephew gets ....

 

or

 

Option 2) have 70% of the repair done and excess reduced to £0.00.

 

In addition to this assuming that option 1 is taken what is the car then insured for (200 quid?) and what if there is an accident further down the line?

 

Many questions remain unanswered here ...

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Right I get you.

 

What kind of damage is it?

7 years in retail customer service

 

Expertise in letting and rental law for 6 years

 

By trade - I'm an IT engineer working in the housing sector.

 

Please note that any posts made by myself are for information only and should not and must not be taken as correct or factual. If in doubt, consult with a solicitor or other person of equal legal standing.

 

Please click the star if I have helped!!

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OK, so from laymans point of view. Lets say that the value of the car currently is £2k, and the repairs are £2.5k.

 

Option 1: Your nephew has the car, and £1300 (assuming that the excess is £500 and nominal value is £200). He will then have to fork out £2.5k for the repairs, and the car will be worth substantially less anyway as it would be a cat D(?) write off.

 

Option 2: Your nephew has the car, and has to pay £750 worth of repairs. Car loses no value.

 

Option 3: Lose the car, get the settlement.

 

Although there may be some debate as to whether option 2 or 3 are the better options, it looks pretty clear cut that Option 1 would be a disastrous decision financially, even if a) the damage cost was less and b) the damages were not performed at all, as the car would be effectively worthless.

7 years in retail customer service

 

Expertise in letting and rental law for 6 years

 

By trade - I'm an IT engineer working in the housing sector.

 

Please note that any posts made by myself are for information only and should not and must not be taken as correct or factual. If in doubt, consult with a solicitor or other person of equal legal standing.

 

Please click the star if I have helped!!

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someone else wrote on another blog ......

 

"If your nephew wants to retain the salvage of the vehicle the Insurers will deduct the value of the salvage from the amount they offered him. If he accepts this they will allow him to retain the salvage providing the vehicle is not classed as to badly damaged.

 

He can then have the car repaired locally for a cash price which is normally much lower than the Insurers can. Once the work is done he will have to have the vehicle re moted and then apply for a new log book. The log book will note that the vehicle was previously written off which often affects the re sale value a bit.

 

Speak to his Insurers and ask what category write off it will be and make sure they are prepared to reinsure the vehicle if he does have it repaired.

 

I do not understand what you mean about the excess reducing as normally if his Insurers pay out they willl deduct the excess from what he receives no matter whather blog ...."

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OK.....in that case, it is entirely dependant upon him knowing someone/a garage who can repair it much cheaper. Is this the case?

 

Also, I would say that "often affects the re-sale value a bit" is a gross understatement.

7 years in retail customer service

 

Expertise in letting and rental law for 6 years

 

By trade - I'm an IT engineer working in the housing sector.

 

Please note that any posts made by myself are for information only and should not and must not be taken as correct or factual. If in doubt, consult with a solicitor or other person of equal legal standing.

 

Please click the star if I have helped!!

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OK.....in that case, it is entirely dependant upon him knowing someone/a garage who can repair it much cheaper. Is this the case?

 

Also, I would say that "often affects the re-sale value a bit" is a gross understatement.

 

These is someone we know who should be able to repair. However all this 'faffing' around to re-register log book and worry about potential re-sale value further down the line. The car is mechanically fine right now. The issue right now is the cost to repair damage to bodywork/sunroof. The actual replacement of part and labour cost via the insurance method seems way to high. So he is still not sure which is the best option. One is inclined to say push to have it covered by insurance, but they might not play ball there....just don't know at this stage

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I personally would be very wary of owning a car that is a write off. I would be looking to avoid this if at all possible - especially considering the current market. If the insurer were to cover 70% of repairs, would it have to be done at their approved garage?

7 years in retail customer service

 

Expertise in letting and rental law for 6 years

 

By trade - I'm an IT engineer working in the housing sector.

 

Please note that any posts made by myself are for information only and should not and must not be taken as correct or factual. If in doubt, consult with a solicitor or other person of equal legal standing.

 

Please click the star if I have helped!!

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I personally would be very wary of owning a car that is a write off. I would be looking to avoid this if at all possible - especially considering the current market. If the insurer were to cover 70% of repairs, would it have to be done at their approved garage?

 

Yes i too feel the same here and have conveyed this to my nephew. After all that's why we pay insurance, let them get on with it i say, instead of passing the problem over, paying people off and causing extra time consuming admin at our end, informing people, re-mot & extra running around etc.

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What a shambled the repair centre appears to be ... car was returned to our nephew. I looked inside to find 'grease city' ... dirt & grime marks everywhere (in at least 20 different places) how disappointing considering they promise and full valet upon return. I took it back and not even an apology, just gormless looks. All they did was wash the outside but didn't touch the inside. They did sort it but this all takes up time going backwards & forwards in the first place!

Edited by papadak
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