Insurance claim amount

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lorgat94

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So about 2 weeks back my car got stolen.

Went through the process of claiming from the insurance (where you get treated like a criminal actually)

Everything was finalised and got sent a document with the amount they paying out. I was insured for the market value of the car.

The payout in my opinion does not reflect the market value and is only 60% of what the market value is. I've searched several websites and it is impossible to replace the car, with the same mileage at the amount they are paying out.

I raised a dispute with the insurance and they say the market value is the midpoint of the retail value and the trade value. (I find the term market value misleading in this regard)

They get the retail and trade value from a company called Transunion and they sent me the document they received. The retail value on the document is about 65% of the actual price you would pay to replace the car. (the trade value is lower).

It is my first insurance claim. Is this normal? Or should I take the case to the ombudsman?
 
This is why I prefer to work through an insurance broker.
My car was written off last month and the initial offer was for retail value, but the specified extras were only valued at about 40% of the insured amounts.
I raised this with the broker and received a new offer the next day where some of the extras were paid at full replacement value and a low mileage bonus of a little more than R5,000. The new offer was R12,000 more than the initial one.
 
I find the market value( insurance value) to be higher than the amount I paid for the cars I have owned in the past.

Bought car few months back for 260k, insurance values it at 350k. Cheapest one one market atm is 280k through higher mileage then the one I currently own.
 
The insurer will most likely pay you the avg difference between trade and book, it's the industry norm. You can get your own car valuation report and proceed from there, I would suggest doing that before raising any external complaint as you need something factual to back you statement. Keep in mind, some also deduct excess which comes off your payout amount.
 
lorgat94 said:
So about 2 weeks back my car got stolen.

Went through the process of claiming from the insurance (where you get treated like a criminal actually)

Everything was finalised and got sent a document with the amount they paying out. I was insured for the market value of the car.

The payout in my opinion does not reflect the market value and is only 60% of what the market value is. I've searched several websites and it is impossible to replace the car, with the same mileage at the amount they are paying out.

I raised a dispute with the insurance and they say the market value is the midpoint of the retail value and the trade value. (I find the term market value misleading in this regard)

They get the retail and trade value from a company called Transunion and they sent me the document they received. The retail value on the document is about 65% of the actual price you would pay to replace the car. (the trade value is lower).

It is my first insurance claim. Is this normal? Or should I take the case to the ombudsman?
Click to expand...

What does your insurance policy document says your vehicle was valued at? If you were paying a premium based on their value (this 60% of your perceived market value), then you cannot get out more, and you should have raised the issue back then and either paid a higher premium, or chosen another insurer that was willing to cover it at that value.

This if I look at my insurance policy document I can see my 2012 Ford Figo is covered for market value, which is R76 100 according to my insurance policy document.
 
Makes me realise I don't have a clue how I'm covered.

Just checked - reasonable retail value, then gives an amount. Compared it to Autotrader, looks reasonable.
 
lorgat94 said:
So about 2 weeks back my car got stolen.

Went through the process of claiming from the insurance (where you get treated like a criminal actually)

Everything was finalised and got sent a document with the amount they paying out. I was insured for the market value of the car.

The payout in my opinion does not reflect the market value and is only 60% of what the market value is. I've searched several websites and it is impossible to replace the car, with the same mileage at the amount they are paying out.

I raised a dispute with the insurance and they say the market value is the midpoint of the retail value and the trade value. (I find the term market value misleading in this regard)

They get the retail and trade value from a company called Transunion and they sent me the document they received. The retail value on the document is about 65% of the actual price you would pay to replace the car. (the trade value is lower).

It is my first insurance claim. Is this normal? Or should I take the case to the ombudsman?
Click to expand...
Market Value is
Current Retail + Current Trade /2
Your excess is probably also deducted from the amount

Could be affected by high kilometres etc

Please work through a reputable broker.
 
So I've checked on these online valuation tools and contacted a dealer.

They all provide the same figures for retail and trade as the insurance.

The thing is I cannot even find one listing of a car at the Retail Value provided for the same car on sites like auto trader, surf for cars, Gumtree, Junkmail etc. (cars for much higher km's are at least going for 30k more than the retail value they provided)

Also the amounts I am referring to are before deducting the excess payment and I have taken this into consideration.


I'm not sure if I really have a case here as the only back up I have is that you cannot buy the same car at the retail value stated in their report.

Thanks for all the responses. Will definitely work through a broker the next time.
 
lorgat94 said:
So I've checked on these online valuation tools and contacted a dealer.

They all provide the same figures for retail and trade as the insurance.

The thing is I cannot even find one listing of a car at the Retail Value provided for the same car on sites like auto trader, surf for cars, Gumtree, Junkmail etc. (cars for much higher km's are at least going for 30k more than the retail value they provided)

Also the amounts I am referring to are before deducting the excess payment and I have taken this into consideration.


I'm not sure if I really have a case here as the only back up I have is that you cannot buy the same car at the retail value stated in their report.

Thanks for all the responses. Will definitely work through a broker the next time.
Click to expand...
Pm me the full details of the vehicle and I'll check the value for you.
Make
Model
Series ie gls gl etc
Kilometers
 
Moereloos said:
This is why I prefer to work through an insurance broker.
My car was written off last month and the initial offer was for retail value, but the specified extras were only valued at about 40% of the insured amounts.
I raised this with the broker and received a new offer the next day where some of the extras were paid at full replacement value and a low mileage bonus of a little more than R5,000. The new offer was R12,000 more than the initial one.
Click to expand...
+1 to insuring via a broker. They fight your battles when it counts, in our experience.
 
lorgat94 said:
So I've checked on these online valuation tools and contacted a dealer.

They all provide the same figures for retail and trade as the insurance.

The thing is I cannot even find one listing of a car at the Retail Value provided for the same car on sites like auto trader, surf for cars, Gumtree, Junkmail etc. (cars for much higher km's are at least going for 30k more than the retail value they provided)

Also the amounts I am referring to are before deducting the excess payment and I have taken this into consideration.


I'm not sure if I really have a case here as the only back up I have is that you cannot buy the same car at the retail value stated in their report.

Thanks for all the responses. Will definitely work through a broker the next time.
Click to expand...

Just keep in mind, a broker can't help with what you have signed. If you agree to the insurance paying out via that calculation, its agreed. As mentioned earlier, its pretty transparent so doubt anything wrong with the insurance company, it is just the sad reality of vehicles.

Also if a dealer is trying to sell you a car above book value, tell them to get stuffed. Book is where you should be starting and go DOWN.
 
Kosmik said:
Just keep in mind, a broker can't help with what you have signed. If you agree to the insurance paying out via that calculation, its agreed. As mentioned earlier, its pretty transparent so doubt anything wrong with the insurance company, it is just the sad reality of vehicles.
Click to expand...
True that a broker can't help what you have signed, which is the reason you ONLY work through the broker. The AOL (Acceptance of Loss) has to come from the broker and returned to the broker. He can then negotiate further and a new AOL can be issued. in my case, I signed the first AOL and returned it, but received another AOL the next day with a higher amount.
The only time you deal with an employee of the insurer is when you take the vehicle to an assessment centre (in case of an accident) and when you hand in the spare key.
 
lorgat94 said:
So I've checked on these online valuation tools and contacted a dealer.

They all provide the same figures for retail and trade as the insurance.

The thing is I cannot even find one listing of a car at the Retail Value provided for the same car on sites like auto trader, surf for cars, Gumtree, Junkmail etc. (cars for much higher km's are at least going for 30k more than the retail value they provided)

Also the amounts I am referring to are before deducting the excess payment and I have taken this into consideration.


I'm not sure if I really have a case here as the only back up I have is that you cannot buy the same car at the retail value stated in their report.

Thanks for all the responses. Will definitely work through a broker the next time.
Click to expand...

2013 I was looking at Ford Bantams. Any in even slightly reasonable condition were R60 000+. Banks would only finance R40 000 and insurer would only cover for R40 000. So I rather bought something else (the Figo). Some popular cars the book value and real market prices get out of whack, and it just is what it is.
 
As many others have said, this is the fight you should have had when you insured the vehicle. Even if you now find someone who will value the car what you can buy it on Autotrader, it is irrelevant. You insured it for Rxxx xxx, and that is the max the insurer will pay.

My car is also insured for market value, which is about 25% less than what they go for on Autotrader.
 
Yeah unfortunately if the Retail/Trade/Book values you are getting from dealers is in the same ball park as what the insurer is offering you, you are SOL unfortunately.

I had the same problem when I wrote my double cab off a few months ago. What it was insured for was a good R40k below what a similar model goes for at the stealerships, but I was aware of that issue, since my insurance policy has a value on it rather than just "Market Value".
 
what are the t's and c's in your policy schedule ?

Instead of a cash payment...would they not be able to replace (like for like). Get same model vehicle , similar mileage.


I have heard off similar instances whereby this was possible.
 
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