Motor Insist on book value?

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serotoninsid

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How is a car valuation arrived at when it comes to reimbursement by an insurer for the vehicle?
Can they only use book value or can they justify veering away from book value?
 
book value may not be the market value. Two cars, same make/model/mileage, but one with better sheen on bodywork would be worth more than a car left out in the sun for a few years and the colour faded. Service history can assist in higher value.

In short, insurers can vary the value they put on the vehicle, from that given in the book.
 
Ravima said:
book value may not be the market value.In short, insurers can vary the value they put on the vehicle, from that given in the book.
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Thanks for your post.
So if we work on the basis of market value, if I cannot find a similar make/model of the same year with same extras and similar mileage on the market for this price, then they cannot justify their valuation?? ie. I've checked carzone/carsireland/autotrader and the price for a similar car would be 15% more on average.
 
serotoninsid said:
Thanks for your post.
So if we work on the basis of market value, if I cannot find a similar make/model of the same year with same extras and similar mileage on the market for this price, then they cannot justify their valuation?? ie. I've checked carzone/carsireland/autotrader and the price for a similar car would be 15% more on average.
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I'd say that pretty much any car on (say) Carzone can be purchased by a "cash customer" for an amount equal to 85% of the asking price.
 
BazFitz said:
I'd say that pretty much any car on (say) Carzone can be purchased by a "cash customer" for an amount equal to 85% of the asking price.
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we could work on that assumption, yes - but for the purpose of this exercise, how is it done? Do they not have to justify their valuation if not via book value, then with quotes rather than assumptions?
 
serotoninsid said:
we could work on that assumption, yes - but for the purpose of this exercise, how is it done? Do they not have to justify their valuation if not via book value, then with quotes rather than assumptions?
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It's more than an assumption. Asking prices on a website mean nothing. It's transactions that are relevant. The loss adjustor should ascertain the real cost of replacing the asset.
 
serotoninsid said:
Sure - but how exactly does he do this?
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Simple - He or she has a file on the specific case and should have backup on their files in relation to any recommendation they make. They might make contact with connections they have within the industry (within specific garages) or they themselves might log on to a website such as Carzone, select 3 similar models and contact the sellers to ascertain market value. Then they just document their research on the relevant file.

One of the principles of insurance is that claimants should be restored to their "pre-claim position" (no better and no worse). Intuitively, the asking prices on websites such as Carzone are as relevant as house asking prices when trying to ascertain actual selling prices.
 
At the end of the day, if you are claiming under your own policy and are not satisfied with value, you can follow complaints procedure with your insurer, up to and including legal action.

if a third party, then legal action is your only option.
 
I've got clarification from the insurance co. They have confirmed that their valuation is based on a combination of book value and current sales listing on the i-net. The guy i'm dealing with is happy to accept a valuation from an independent assessor provided they are a 'suitably qualified expert'.

I guess I will see in the first instance if an independent assessor can provide a better valuation.

@ravima: yes, it's a third party insurer.
 
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