Insurance Valuation
What will happen ...
You will receive a cash payment to settle your claim if your car is:
- written off by your insurer, or
- stolen and not recovered, and
- you have theft cover
To find how your claim will be settled, check your policy; this should define your entitlement. Generally, an offer will be made by your insurer based on your car's pre-incident market value. The insurance ombudsman has indicated in his 1994 report that the offer should reflect 'a replacement value in the market in which the policyholder intends to buy a replacement'.
It can therefore be helpful to send evidence, such as advertisements of similar cars, to your insurers if you are not happy with the cash offer to settle your claim. Not every insurer is subject to the Insurance Ombudsman.
Remember that policies differ, so check your policy documents carefully.
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4 September 2009