Car Insurance - Insurer Tricks on Car Write-Offs
Drivers are infuriated that some insurers are knocking hundreds of pounds from written-off payments.
There are clear rules that have been laid out for insurers to follow for car write-offs. The Association of British Insurers says that your insurer has to offer you a payout that is for the value of your car.
What this means is that, with the money given to you, you should be able to go out in your area and buy a similar car, in a similar condition. The only money that the car insurance company should deduct from you is the excess that you agreed to pay when you took out your car insurance policy.
The problem with this rule is that car prices are negotiable and it is rare that the insurer and the driver agree on what the car is worth and it is this that the insurers use in order to manipulate the payments given.
There are a variety of tricks that insurers use in order to get out of paying drivers the full amount that their car is worth.
One trick is that the insurance company will offer you a price that is close enough to the actual price of the car but low enough so that they are saving themselves a few hundred pounds.
Often this price also only reflects the general price of the car and fails to take into account the season or the region where the car was bought.
The offer that is put forward by the insurer is often sent in the post in the form of a cheque. This indirect offer that does not include any conversation, makes many people assume that there is therefore no room for negotiation and so simply cash the first amount that are given.
The additional offer of a courtesy car that most insurance companies offer is another trick that the companies use. It is normally the case those four days after your first settlement cheque arrives; you are expected to give back the car. This rule means that many people accept this first offer so that they will not be without transport.
There are, however, things that you can do to ensure that you do not get tricked. One is to make sure that you read the small print in your car insurance policy so that you know in advance how long you will have the courtesy car for. Another important point to remember is not to cash the settlement cheque immediately, if you are in need of the money then contact the insurer, via a written letter, stating that you are only accepting the cheque as an interim payment.
Of course the main thing that you can do so that you are not tricked by your insurer is to do your homework. Do this by looking online and asking around at local dealerships to find out what similar cars are worth.
The car insurance company deducts money from the money given to you for you car that has been written off.
This money is the excess that you agreed to in your car insurance policy.
Make sure you read the small print in your car insurance policy.
Source: http://ezinearticles.com/
Added: March 20, 2008
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