Motor Car insurance Cheque is this legal?

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sunshimmer09

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I had an accident with my car; no other vehicle involved just me and a wall. The damage looks superficial enough but is still bad enough that it warrants fixing. I’ve decide to go through my own insurance as I am 10 years driving claim free with a small enough premium and feel I could take the hit.

I got a quote for the insurance company from a Ford garage and was completely shocked when the quote came in at €3,500 they recommend one new door and I thought the labour charges seem quite high as well. The insurance company sent out an assessor and he has agreed a price of €3,200 with the garage. I’ve in since gone to a friend of a friends garage on recommendation he does good work and he’s quoted me €850 he said they door is perfect and does not need to be replaced just your basic panel beating and spray paint job. It’s a 2003 car hatch back model so its not like I’m worried about devaluing a fairly new car.
The insurance company have offered to send me a cheque for the €2,900 (minus my €300 excess)to get the repairs done, is it insurance fraud if I get the cheque and have the job done for €850 and pocket the rest. Or will they come after me in a few weeks time and ask for a receipt for work done. I’m out of work at the moment so extra cash with be a god-send. Has anyone had any similar experiences?
 
If you profit from an insurance policy, it goes against the idea of indemnity and is wrong. Whether an insurance company will find out afterwards and try and look for the money back is a different matter. Even if you get away with what you're thinking, it may prove to be a false economy as your insurance will probably increase and by claiming you are restricting your choice of companies for a number of years. Best to either send in the cheaper quote to the company or try and get the repairer to give you the best deal possible and pay it out of your own pocket.


www.powerinsurances.ie
 
I agree with your point, I just thought if they insurance company in fact state I have suffered a loss of €3,200 in damages I am not in fact making a profit. I have suffered the damage so to speak. I have been advised that a claim of less than €4000 with only increase my premium by €200.

It seems quite a shady area, the loss of vaule to my vechicle has occured so I am due compensation. Guess I should just ask the insuracne company out right.
 
Jimbobp said:
If you profit from an insurance policy, it goes against the idea of indemnity and is wrong.
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How is he profiting ?

The insurance company has decided that he is entitled to a new door. He is just taking a cash equivalent.

He will still be left with a car with a wonkey door (according to the insurance company).
 
To my way of thinking, the insurance co. ,in giving you the required amount (€2900) are fulfilling their obligations by allowing you to restore your car to its previous condition . What you do as regards repairs is up to you .
 
your car is now devalued by x amount,the insurance payment will allow you to bring the value back up,if you choose not to get the work done and pocket the dosh i cant see the problem,you will be out of pocket by the x amount when you try to sell the car.
 
its not FRAUD. It might be considered SHARP PRACTICE. However, it will cost €3200 to bring the car back to its pre accident condition and you are getting a cheaper job done. that is up to you, but make sure that the repairs are of the same standard as the Insurance Co Garage as if you are to drive a defective car and have another accident, YOU will be in trouble. your insurance will NOT deal with a claim if you are in breach of the policy conditions.
 
SunShimmer,

I think the fact that you've asked the question - means deep down you know the answer ...
 
Your car has been assesed by the insurance company and that is what they deem is your loss,you can take your cheque and do as you please.
You may want to use the cheque to buy another car rather than fixing your own,it's entirely your decision whether to fix the car or not.
 
thanks for all the advice, I've taken it to another garage and they also advised the door is fine, looks lke the ford garage was bumping up the quote because they new it was an insurance job, I probably shouldn't be suprised!

I'm going to keep the cheque, and go with the cheaper quote.
 
sparkeee said:
your car is now devalued by x amount,the insurance payment will allow you to bring the value back up,if you choose not to get the work done and pocket the dosh i cant see the problem,you will be out of pocket by the x amount when you try to sell the car.
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The car devalued due to the OP's stupidity. You cant expect an insurance company to pay for that! Why should they?
 
The car devalued due to the fact that he hit a wall, not due to his stupidity. Stupidity is NOT an insured peril, but accidental damage is.

The fact that he repairs it to his satisfaction at a cheaper price than that assessed by insurer is neither here nor there.

The car was worth €X pre accident. If it is properly repaired then it is worth close enough to €x post accident. if however, the standard of repair is poor, then the value of the car is now substantially under €x. If OP is happy, then thats the end of the matter.

he did no have to get it repaired at all. he might have been happy to drive around with the car showing its damage for ever. he is still entitled to be compensated under his policy on an indemnity basis.

For example, if my car is a total loss and I am given cheque by insurance company, I do not ave to replace the car. I can if I want, give the cheque to Ladbrokes and place a bet on the ireland/italy match. The insurer has compensated me for my loss and what I do with the proceeds is up to me.
 
Any claim for accidental damage will result in loading on the policy (and possibly reduction of NCB if this isn't protected). Whilst other posters are correct that there is nothing to prevent you taking the cheque offered and getting the vehicle repaired for less - you will end up paying in the long run by having a larger claim on your policy which will affect your premium and can affect you should you wish to change insurers within the next 3 years.
 
Ravima said:
The car devalued due to the fact that he hit a wall, not due to his stupidity. Stupidity is NOT an insured peril, but accidental damage is.

The fact that he repairs it to his satisfaction at a cheaper price than that assessed by insurer is neither here nor there.

The car was worth €X pre accident. If it is properly repaired then it is worth close enough to €x post accident. if however, the standard of repair is poor, then the value of the car is now substantially under €x. If OP is happy, then thats the end of the matter.

he did no have to get it repaired at all. he might have been happy to drive around with the car showing its damage for ever. he is still entitled to be compensated under his policy on an indemnity basis.

For example, if my car is a total loss and I am given cheque by insurance company, I do not ave to replace the car. I can if I want, give the cheque to Ladbrokes and place a bet on the ireland/italy match. The insurer has compensated me for my loss and what I do with the proceeds is up to me.
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Yes, but if you accidentally damage your car and have insurers repair it, what would they say if you turned around and said "And what about my 15% depreciation? Can you send me on the cheque for that? I never got it"!!!

Not disputing that you can gamble your money away if you wrote off your car but it still doesn't have anything to do with the depreciation of a vehicle.
 
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