# How do Insurance companies value write off's?



## Rayaan (Jun 1, 2014)

Basically, just wondering how insurance companies value written off vehicles? Do they use CAP or the glasses guide? Im aware they give market value (sometimes a lot less than market value) but Im just curious as to how it all works. Thanks in advance!


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## nichol4s (Jun 16, 2012)

Rayaan said:


> Basically, just wondering how insurance companies value written off vehicles? Do they use CAP or the glasses guide? Im aware they give market value (sometimes a lot less than market value) but Im just curious as to how it all works. Thanks in advance!


when I claimed for one of our vans at work that had been written off they used glasses!


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## MagpieRH (May 27, 2014)

I think they use a trade value but in theory they are supposed to give you enough to purchase a vehicle of similar age, spec and in similar condition.


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## Rayaan (Jun 1, 2014)

nichol4s said:


> when I claimed for one of our vans at work that had been written off they used glasses!





MagpieRH said:


> I think they use a trade value but in theory they are supposed to give you enough to purchase a vehicle of similar age, spec and in similar condition.


Basically, my brother in law got rear ended on the motorway. The person claimed full liability but, the insurance company wrote his car off (Audi A6 Biturbo), then offered to give him £25k? Bear in mind the car is just over a year old so he doesn't get a new car from his insurance company. It cost in excess of £50k new and even the trade in value is £35k. So where has this £10k gone in the middle?


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## Jenny19 (Mar 18, 2014)

Has he got gap insurance? Apparently they always offer a crap price straight away, get him to argue that it's worth more and hopefully they'll give him a bit more money.


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## Shiny (Apr 23, 2007)

The offer should be current market value, based on the pre accident condition, spec, mileage etc of the vehicle. Assessors normally use guides such as glasses etc to help in their assessment.

If he disagrees with the valuation, he will need to present evidence to substantiate the pre accident market value with items such as for sale adverts (although bear in mind that a for sale price is not a sold price as sale prices are often negotiated), or a valuation from an Audi garage.

If he is still not happy, he can make a formal complaint and, if the complaint is not resolved, refer it to the FOS.

To resolve issues, the FOS take he view that the offer should be based on dealer sale price (which is often lower than the forecourt price but higher than the private sale value) - further details here - http://www.financial-ombudsman.org.uk/publications/technical_notes/motor-valuation.html

If this is going to drag out, he may be able to request an "interim" payment based on the current offer with a view to a further payment in the event that he is successful in obtaining a revised higher valuation.


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## Rayaan (Jun 1, 2014)

Shiny said:


> The offer should be current market value, based on the pre accident condition, spec, mileage etc of the vehicle. Assessors normally use guides such as glasses etc to help in their assessment.
> 
> If he disagrees with the valuation, he will need to present evidence to substantiate the pre accident market value with items such as for sale adverts (although bear in mind that a for sale price is not a sold price as sale prices are often negotiated), or a valuation from an Audi garage.
> 
> ...


Thats some good information! Cheers.

My brother in law does not have GAP insurance, never thought he needed it. He says he is happy with even a private sale price but the current offer is far from even the trade in value.

Currently on the Audi used website it appears that the cheapest Biturbo is £37k and even then, its not the Black edition. He's expecting £35k so I would say he's being pretty reasonable considering it cost £50k+ when he bought it about 14 months ago.


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