Insurance claim advice

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Jonathan - 09 Jan 2004 09:45 GMT

My question about the interior was becuase my Mini suffered a fire the
other day which took out the back seat and the headlining - the carpets,
fronts seats are fine. The fire was caused by a freak accident (the wheel
jack came into contact with the battery according the fire brigade) rather
than an electrical fault. The only exterior damage is a little paint
scorching on the rear wing, other than that the car suffered no structural
damage at all - despite the fire having started in the boot, the rear
wheel was completely untouched.

However... my insurance company has written her off on the grounds that it
would cost more to repair than the car is worth. For one they seem to keep
comparing my Mini to a bog-standard Mayfair at ?500 when in fact she's an
84 limited edition Sprite that was last valued at around ?1500. They put
the cost of replacing the interior at ?1000 in parts alone when I know I
can source a second hand interior for about ?100 and my local garage say
that replacing the interior and repairing the paintwork - as well as
checking/replacing the wiring around the back - would be a peice of cake.

However, the insurance company won't play ball and insist that they have
to go by their figures, when I know I can get the car preaired for a
fraction of the price - and the annoying thing is that she *can* be
repaired, the damage is merely cosmetic.

So what are my options? Anyone know what kind of deal I should be going
for here, or is it a case that I cancel my claim and have the work done
privately at my won expense?

Ta in advance!

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Ben Harris - 09 Jan 2004 10:04 GMT

> My question about the interior was becuase my Mini suffered a fire the
> other day which took out the back seat and the headlining - the carpets,
[quoted text clipped - 24 lines]
>
> Ta in advance!

In my experience (I smashed up my mini 9 months ago, and the cost of
replacing a wing made it "uneconomical to repair"), if you've got fully
comprehensive insurance, then the insurance company will pay out what they
consider the value of the vehicle to be, less the excess. In my case, they
found a similar mileage/age/condition mini in AutoTrader, to base the price
on - and it was actually more than I expected!. You should also have the
option to buy the vehicle back from the insurance company (who have, in
effect, bought the damaged car from you). In my case this cost me ?60, and
I'd imagine that was a fairly average figure. If you then choose to carry
out your own repairs and return the vehicle to the road, that's up to you.

I don't however know if there are any official procedures (safety checks?)
you need to go through in order for a written off vehicle to become
non-written off again. This is something I'd also be interested in finding
out about, as when I find the time I intend to repair my mini and get her
back on the road.

Ben.

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Steve - 09 Jan 2004 11:30 GMT

> However... my insurance company has written her off on the grounds that it
> would cost more to repair than the car is worth. For one they seem to keep
[quoted text clipped - 4 lines]
> that replacing the interior and repairing the paintwork - as well as
> checking/replacing the wiring around the back - would be a peice of cake.

The insurance company would base their estimate on new parts, even if they
are no longer available anyway!

I don't wish to be rude, but ?1500 for any 1984 Mini is a lot.
Unfortunately, Rover continually shot themselves in the foot with 'limited
editions'. They made so many different ones, one after another, that it
diluted any added value to them.

> However, the insurance company won't play ball and insist that they have
> to go by their figures, when I know I can get the car preaired for a
[quoted text clipped - 4 lines]
> for here, or is it a case that I cancel my claim and have the work done
> privately at my won expense?

You have an opportunity to gain here.
I would suggest that you accept that the car will be written off. What you
need to do is NOT accept the first offer from the insurance company. They
will ALWAYS increase it if you go back to them. You should then accept the
second offer and ask to keep the salvage too. Remember, the insurance
company does not want your car. It costs them to get rid of it. So you
should be able to bargain with them over keeping it. They may want to reduce
the payout (usually about 10%) for you to keep it. So long as you can repair
the damage within the resulting payout, you are going to gain.

Example: We had a Morris Minor van for our business and a Jeep Cherokee ran
into the back of it while I was stationary. Insurance company wrote it off
and offered ?550. I got the offer increased to ?680 and kept the salvage.
Did the repair for around ?200 and gained ?480 into the bargain!

Signature

Rgds
Steve
steve@dsnclassics.co.uk
www.dsnclassics.co.uk

Reply to this Message

Ben Harris - 09 Jan 2004 14:56 GMT

<SNIP>

> You have an opportunity to gain here.
> I would suggest that you accept that the car will be written off. What you
[quoted text clipped - 10 lines]
> and offered ?550. I got the offer increased to ?680 and kept the salvage.
> Did the repair for around ?200 and gained ?480 into the bargain!

Once you've repaired the car, can you simply get it MOT'ed again (as it's
now run out in my case), and then start using it on the road, or do you need
to go through some official procedure with the DVLA because the car had been
written off, to prove that it's still safe to drive?

Ben.

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Steve - 09 Jan 2004 15:59 GMT

> Once you've repaired the car, can you simply get it MOT'ed again (as it's
> now run out in my case), and then start using it on the road, or do you need
> to go through some official procedure with the DVLA because the car had been
> written off, to prove that it's still safe to drive?
>
> Ben.

The process of writing off is purely a financial one. It is just between you
and the insurance company. The term 'written off' means that the insurance
company is writing off the cover rather than paying out for repairs. I think
your existing insurance cover is cancelled when it is written off so you
will need to take out new insurance when the vehicle is repaired.

At least, I think this is how it works. It was a while ago when I did it. If
you want impartial advice, you could talk to the insurance ombudsman or
another broker.

Signature

Rgds
Steve
steve@dsnclassics.co.uk
www.dsnclassics.co.uk

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