Insurance query re scrappage

[grober]

Something just occurred to me-- supposing your pride and joy old Merc is involved in an accident and like as not written off as uneconomic to repair. AND--- it qualified pre-accident for a scrappage deal. Will the insurance company be obliged to value it at £2,000 and not some derisory back of an envelope figure as per usual? Anyone been in this position?

 

[bennesspipers]

No they wouldnt because you havent traded it in to buy a new one, the government pays the car dealer when they list that they've sold 1 under that scheme.

 

[Deleted member 6183]

Ah but you could argue that it's current value is at least £2k.

Might be difficult to prove that you would have been looking to part ex under scrappage though.

 

[Shude]

Here is an interesting situation then:

You've chosen your new car, it's been ordered and delivered and £2k has been knocked off the price as your old one is going to be "scrapped" under the scheme. On the way to pick up your new car you are hit by another and your "pride and joy" is wrecked. If the old car is no longer fit to pass the scrappage deal would the 3rd party's insurance be happy to make up the difference?

 

[MD5]

The car at this stage has an agreed valuation, which the insurer couldn't dispute.

 

[SilverSaloon]

surely no. The car is never worth £2k. its the deal that gives you £2k at trade-in time. its no different to trading in a car, getting a deal based on the value and then going to pick up and with the trade-in car significanly worse condition. would the garage honour it? i doubt it! nor would the ins company!

 

[Will]

Surely if the car in question has a valid MOT still, wouldn't you be able to scrap it anyway? Anyone know the exact T&Cs for eligible vehicles?

Of course, you could simply insist that they repair your vehicle -
seems daft if it's gong to be scrapped anyway

Will

 

[Rory]

There was an article about this in one of the car magazines and most insurers said "tough luck".

 

[Shude]

surely no. The car is never worth £2k. its the deal that gives you £2k at trade-in time. its no different to trading in a car, getting a deal based on the value and then going to pick up and with the trade-in car significanly worse condition. would the garage honour it? i doubt it! nor would the ins company!

The 3rd party's insurance company is supposedly meant to ensure that you are not in a worse (or indeed better!) position than you were prior to their customer damaging your property.

Surely if the car in question has a valid MOT still, wouldn't you be able to scrap it anyway? Anyone know the exact T&Cs for eligible vehicles?

Of course, you could simply insist that they repair your vehicle -
seems daft if it's gong to be scrapped anyway

My Father had to pay a few hundred pounds to get his Porsche 944 through the MOT so it could be scrapped under the scheme!

 

[grober]

Found this http://www.myfinances.co.uk/news/insurance/car-insurance/insurers-willing-to-help-with-car-scrappage-scheme-$1307487.htm
It would appear that unless you have already entered a scrappage deal it might be better not to claim provided the car is still "roadworthy" whatever that means. Experience would indicate that many insurance companies will try to minimise the "market value" of any car written off no matter what the circumstances. Under normal circumstances the "market valuation" is surely defined as what you could reasonably expect to get selling or part exchanging the car. You would not have to have an actual " agreement to sell" in place to claim that value before the scrappage deal??

 

[janner]

You could probably still trade the damaged car in under the scrappage scheme. Technically the car needs to be roadworthy but no-one checks, so as long as it's got an MOT, tax (or SORN) and you've had it for a year you might get away with it.

 

[crammy69]

You could probably still trade the damaged car in under the scrappage scheme. Technically the car needs to be roadworthy but no-one checks, so as long as it's got an MOT, tax (or SORN) and you've had it for a year you might get away with it.

Yep, it doesnt even need to be driveable, they send a truck with a grab arm to take it to the crusher. So long as youve got the paperwork, the garage doesnt even ask to see the car before its scrapped.