insurance pay out

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les
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insurance pay out

Post by les »

What is the value of a Minor, if written off, from an insurance companies point of view? To clarify, assuming one just insured the vehicle in the normal manner, not agreed value, just as would have been done years ago.

aupickup
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Re: insurance pay out

Post by aupickup »

prob be market value based on condition, but would not expect to get that amount
agreed valuation is a different ball game
bmcecosse
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Re: insurance pay out

Post by bmcecosse »

If it happened to my Trav - I would expect to get enough to buy a similar vehicle in similar condition on the open market - so I would be bombarding them with adverts/ebay listings for similar Travs. Also refer to the 'Price Index' in Pratical Classics etc...aiming at the 'mid' range price. can't see how they could argue any less!
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les
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Re: insurance pay out

Post by les »

I'm under the impression that you need an agreed policy for that to happen. Otherwise I'm wondering if they would use the same formula as applied to a modern car, whatever that is. Haven't heard from Dave at fj insurance for a while, he would likely know.

aupickup
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Re: insurance pay out

Post by aupickup »

to get what its worth to you, you need agreed valuation
les
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Re: insurance pay out

Post by les »

I realize that Dennis, just wondering what sort of payout you'd get for a good condition Minor if the insurance wasn't agreed.

aupickup
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Re: insurance pay out

Post by aupickup »

less market value as any modern insurance
bmcecosse
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Re: insurance pay out

Post by bmcecosse »

The 'value' of any modern car is well know - see 'We buy any car' etc etc - or Glasses Guide - that's what they pay . So the equiv for us is whatever is posted in the Classic Mags - or a survey of recent sales. can't see it being anything else!
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tysonn
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Re: insurance pay out

Post by tysonn »

Just to relieve the boredom fill out the online form on "we buy any car" for your modern.Make sure youre sitting down for their valuation though!
bmcecosse
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Re: insurance pay out

Post by bmcecosse »

Oh yes - but it is spot on as we found out recently when selling/trading my daughter's Clio. Be prepared for the flurry of repetitive emails asking if you still want to sell/have a new valuation. And I'm guessing when they come to take the car - they will find a host of little reasons to reduce the offered value on the day.......
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les
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Re: insurance pay out

Post by les »

If it's what's posted in the classic mags, no need for agreed value policies then. I somehow don't think insurance companies would see it that way though. Without agreeing a value I suspect it would fall into the old banger bracket. However I don't know, hence my initial question.

LouiseM
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Re: insurance pay out

Post by LouiseM »

les wrote: Haven't heard from Dave at fj insurance for a while, he would likely know.
Send him a pm Les.


Eric - 1971 Traveller
bmcecosse
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Re: insurance pay out

Post by bmcecosse »

The agreed value etc would apply to a really special 'like new' vehicle, to 'prove' it is worth all the extra value the owner imagines is in the car. Certainly my own Trav is just 'average' and so I could only expect an 'average' pay-out.
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les
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Re: insurance pay out

Post by les »

-----and presumably the only way to find out what that figure would be, is to make a claim. If someone is in the unfortunate position of having to do this, perhaps they would let me know what was offered.

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Re: insurance pay out

Post by theminorsite »

The figure offered by someone like WeBuyAnyCar will almost definitely be touted by an insurance company settling a loss, but only because most people don't know any better. Let's take my wife's modern as an example, which has a current forecourt retail value of £11,900, according to the guides. The private sale figure is a bit less than that, at £11,000. Then we have two p/x prices - one for clean, one for not so clean, with the lower one at nine and a bit. WBAC, of course, come in lower than that at around eight and a quarter, because, as any fule no, all they do is pass them straight on to auction houses anyway, and they want their profit from the auction price realised which will be somewhere around the nine grand mark. As an aside, but not really related to this question, that's where the HUGE majority of cars bought by WBAC and those of their ilk end up. The valuation you're given will never be paid out, as more than one Watchdog investigation found, because matey boy who meets you to do the deal will go to absolutely any length whatsoever to find fault, and tell you that the scratch he's just spotted will have to have the panel stripped, filled, painted, topcoated, etc etc before it can be resold, despite the fact that it'll be at an auction next week without being so much as washed let alone repaired!
Back to the point though - the insurer will have a go at maybe eight and a half, and when met with the inevitable howl of protest will just point at the guide prices for trade ins. Well, that's all fine and dandy, IF your car was for sale at the moment you had it damaged. If you were flogging it, that's about all you could expect to have got for it, so that's a fair deal. But in the vast majority of cases, you WEREN'T selling you car. And now that its gone, you've got to replace it. And as you're not a trader, you don't get to buy cars at trade in value, you get to pay retail like all the other mugs. The job of your insurer is to put you back into the position you were in just before your claim arose, not to give you the amount someone else would have given you for it. For a mainstream modern, that's somewhere between the private sale price and the dealer forecourt price. If it's something not so common, there's a whole different argument about how long its taken you to actually find the replacement, and even travelling to see cars, but now you're firmly out on 'goodwill' ice so it'll depend on how long and hard you're prepared to fight. But whatever route you end up on, you should never ever accept a trade guide value that you cannot possibly buy a like for like replacement at!
Mike
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bmcecosse
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Re: insurance pay out

Post by bmcecosse »

You can go along to the 'auction' though....
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theminorsite
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Re: insurance pay out

Post by theminorsite »

You can, yes, but you embrace all the risk that that entails. The traders at any auction have access to a price guide that Mr Punter doesn't, and they are - if they're to stay in business any length of time - more 'seasoned' to such sales platforms and better able to spot the inevitable lemons that come through. Even they'll still get it wrong now and then though, which is why they'll only buy at a given price no matter how much they 'want' the car - they have to have a margin to account for the 1 in 10 or 1 in 20 motors they buy which actually turn out to need a bucketful of cash spent on them before they can be passed on.
Mike
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Mark Wilson
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Re: insurance pay out

Post by Mark Wilson »

To be fair to We Buy Any Car they are succeeding because they are filling a need for people who don't want or can't handle the very considerable hassle of selling a vehicle by other means. Last year I was in that category, working away from home and needing to change my car in something of a hurry. I found a real low mileage bargain Octavia being sold privately and could tell the elderly farmer selling it was as genuine as I was likely to find. I sold my very high mileage Focus estate to WBAC as I didn't want my wife to have to deal with the usual string of tyre kickers and part time dealers who turn up for a private sale. They paid me £500 more than I'd been offered by a dealer selling a similar Octavia to mine - even though he was asking about £2000 more than I paid! True, WBAC's final price was a couple of hundred lower than originally quoted, after a couple of minor dents were taken into account, but I fully expected that and found the process refreshingly simple and hassle free.

The guy I dealt with explained that the model of business depended on very good market information - they move cars around as they can fetch quite different prices in different parts of the country.

Mark

PS Definitely no connection to WBAC!
tysonn
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Re: insurance pay out

Post by tysonn »

WBAC are owned by BCA(British Car Auctions).
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