Anyone know about car insurance? Please help!

[Spiderpop]

Hi, hoping for some advice. Someone crashed into my car a couple of weeks ago. He accepted full liability and his insurance got in touch the same day. They said they would deal with everything, got us a courtesy car and said they would be writing the car off.
They then offered us £8000 for the car (it would cost at least £10000 to get like for like.
We rejected this and passed it on to our insurers to deal with (we have legal cover and it says like for like in our policy). They said they were going to fix it and sent someone to pick it up.
Turns out they sent it to be scrapped without our knowledge and then offered us the same £8000. We said not good enough and sent quotes of three similar cars which were more than that. They sent a quote for a similar car they’d found but it wasn’t automatic, wasn’t 4 wheel drive, not the same spec as what we had before.
We said this to them via email yesterday and today they’ve replied saying the matter is settled and they’ve sent the £8,000 cheque.
Can they do this? Should they have agreed a price with us before sending the car for scrap? Is there anything else we can do?

[Rainbowshine]

Do you have GAP insurance? That’s the only way you will get the same amount as you paid for the vehicle. It’s common that it’s scrapped at trade price not retail.

[Chicchicchicchiclana]

Insurance is a rip off. You will never get a like for like deal and your premiums will go up, even if your claim is absolutely not your fault. It sucks.

[Spiderpop]

We don’t have GAP insurance. I can’t believe that someone can smash into me and we’re left out of pocket, never mind all the inconvenience. It’s so wrong

[RaininSummer]

That can't be right. Insurance is to put you in the position you were in before the incident. If you can't get the same car for what they are offering then argue. Perhaps don't cash the cheque as maybe tgat denotes acceptance. Years back a loss adjuster sorted my dispute out.

[iftherewereahorseyinthehouse]

You need to get on the value guides - glass's guide etc. That's what they use. It's not trade price as such but it's also not advertising price.

[MsAdoraBelleDearheartVonLipwig]

Insurance will only ever pay out the basic trade market value for a car. It sucks but that’s how it’s always been.

[Lineofconcepcion]

Collate evidence of the replacement cost and go through your insurance company complaint process providing the evidence, finishing with the financial ombudsman (FOS). That is probably your best and cheapest method of dealing with it. Your alternative is to sue in the county court, but with the backlog at the moment it won't be heard for probably a year and then the judge may knock it back to ADR anyway, which is the FOS.

[MatildaonaWaltzer]

Don't cash the cheque yet; that will be treated as acceptance of the sum paid out.

[peteneras]

Someone crashed into my fairly new parked Audi one night some years back and drove off. My insurers said they would pay me the market price and scrap the car. It was many thousands of £s below my expectation and therefore, I refused. I insisted they repair the car at my Audi dealership up to the stage before the crash. Whilst the argument between me and my insurers was still going on, the perpetrator who crashed into my car did the decent thing and reported herself to the police a few days later. I finally had my way and the car was repaired up to the original Audi specifications.

[Spiderpop]

Thanks for the advice. I’ve just talked to my husband and he’s been dealing with the insurance company rather than the solicitor assigned to our case. I’m going to give him a ring tomorrow to see if he has any ideas.

[rottiemum88]

Insurance is to put you in the position you were in before the incident

No, it really isn’t, that’s why gap insurance exists. An insurer will pay market value for your vehicle at the point it was written off. You can try to argue it, but I doubt you’ll get very far unfortunately.

[FoxyBadger]

Two insurance companies have both offered you £8000 - a figure they will be able to support with evidence - so you need to prove you cannot replace your car for this amount.
From experience in claims settlement though, most people massively overvalue their cars.
You need to find evidence of three cars of same spec/similar mileage/condition for sale and send this evidence to your insurers.
They will argue that, as a cash buyer, you would not expect to pay full asking price but obviously wouldn't expect you to get a £2000 discount.
Ask to speak to the Claims Manager and to see on what basis they're making their offer.
If unhappy, you will need to submit a formal complaint to your own insurer before it will be considered by Insurance Ombudsman.
With regard to your car, have you provided the V5 etc? The car shouldn't be disposed of until settlement agreed. It would remain your property until settlement made.

[PrayingandHoping]

The payout should be for the amount it would cost for you to buy exactly same car. Make, year, model, spec. You need to find proof that their offer is not enough and refuse that cheque.

[Spiderpop]

We did send them examples of cars of the same spec as ours and they sent us one in Norwich (we’re in North Yorkshire) which wasn’t automatic, wasn’t 4 wheel drive and didn’t have leather interior. They also sent us one which was over £9000.
We haven’t sent the V5 yet.

[PrayingandHoping]

They won't care about location of the vehicle

But the spec you need to keep banging on about.

[happinessischocolate]

I wonder if they've realised that they shouldn't have scrapped the car and have sent the cheque in hope that you will bank it and then the claim will be settled.

As a pp did, I'd keep arguing that you wanted your car repaired, so they need to get the exact same spec car.

Distance isn't a problem, they can get it delivered.

[Spiderpop]

Thanks so much for all the advice x

[Marieg10]

The insurance settlement should put you back in the position you were in immediately before wherever practical...ie accepting that for eg you might have bought your car new and you have to accept second hand now etc.

The spec is key...ask them for a car virtually same spec etc and see what the price is. In my experience, second hand cars don't get discounted much at all due to internet sales...we acquired one recently and all dealers were up front and said the price is the price..no discounting at all and to be fair, their price was in line with the guides.

If they won't settle...it will be the small claims court for the difference. You will need to include copies of adverts for the same spec and age as yours and cost

[MatildaonaWaltzer]

Who gets the scrap value- the insurer or owner? That’s worth money

[Elai1978]

Who gets the scrap value- the insurer or owner? That’s worth money

Normally by the time it’s sold for scrap (or accurately salvage) the insurer IS the owner. If cat S or N the policyholder can often buy it back from the insurer for the salvage value as part of the settlement, handy for low value cars that have been written off for something stupid that you can fix for £50 with used parts.