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UK Car Assurance - We Detail The Complete Process

A vehicle is written off when the cost of repairing it is higher than the present market value of a similar vehicle. Once the insurance company decides that the vehicle is a write off then they take the steps detailed here.

1) The vehicle will have been moved from the car repairers to a salvage merchant. This is done to reduce storage costs imposed by repairers for vehicles in their yards.

2) The insurers will ask you for the vehicle documents. That is the keys, service records,V5 registration document, purchase receipts, MOT certificate if your car requires one and details of any outstanding finance. They will ask for your Certificate of Insurance to be returned. They will need the original documents before they will be able to settle your claim. Copies will be ok to start with but will slow down the process.

If you enquire of the insurance company why they require all of this paperwork, they will probably tell you they need to ensure they have the correct model of the car, that it had a valid MOT and some sort of a service history to establish that is has been maintained. These are all appropriate reasons. But the company also want to check out your claim for being fraudulent. Official documents have a number of anti-fraud measures built into them by the issuing Government agency. A careful check on the documents will enable the person checking the claim to quickly establish that these are indeed genuine documents and not fake. If there is any doubt, they will use forensic science equipment to validate that the documents are genuine or fake. You would need to be a very shrewd crook to successfully forge all these documents. I would suggest that you let your insurance company have the original documents as soon as they request them. Your claim will be delayed if you send copies.

3) Whilst you are waiting for your settlement details, your insurance company will be doing further checks as well. They will record the claim on the 'motor insurance anti fraud and theft register'. (MIAFTR) This is a national data base that has been recording all insurance total loss vehicles and stolen cars since the start of the 1980's. It checks your vehicle against the contents of the database to see if the vehicle has ever been written off before, or whether it has ever been stolen and not recovered. It checks against your name and address; post code; your vehicle's registration number and VIN (vehicle identification number). If there is a match further questions will be directed towards you, and the insurance company might begin 'fraud investigation' mode.

MIAFTR also as a matter of course checks your car against the Hire Purchase Information (HPI) database. If you used a finance company to buy it and you still owe money, it will be on the HPI database. Rest assured that your insurance company will discover it. So be truthful and tell them about your outstanding balance. The finance company is the rightful owner of your car. Any settlement must be made to them whilst there is an outstanding balance. Whatever is left goes to you. Similarly, your claim will be recorded on the Claims & Underwriting Exchange (CUE). This is done as a matter of course on all motor and home insurance claims. Not all insurers subscribe but most of them do.

Problems arise where the outstanding balance of the loan is greater than the worth of the vehicle. In this case the insurance policy does not completely pay off the loan. I remember a scheme for motor bikes. Teenagers went into a dealer, bought a new bike plus all the helmets, leathers and so on with money borrowed against the value of the vehicle. The interest rate on the loan was incredibly high. Some time later there would be an accident and they would total loss it (or it was stolen). The value of the motor cycle was much less than the combined purchase price plus the interest. It caused a furor which was blamed on the insurance company rather than the stupidity of the youngster for getting involved in such a bad deal with the motorcycle dealer.

4) Your insurance company will be obtaining bids for the wreckage. The more they can get, the less they will have to pay out on your claim. There has been much controversy about cars which have been written off reappearing on the road, or being purchased by the criminal fraternity to aid their disguise of a stolen vehicle. The ABI (Association of British Insurers) have issued a code concerning the disposal of vehicle salvage. All member companies adhere to these rules. The result is that the majority of salvage is sold by the insurance companies to reputable salvage merchants. If it is damaged to an extent that meets listed criteria, it will be stamped with a code that requires the vehicle to be broken up or scrapped. Vehicles with less damage can still be repaired and returned to the highway.

5) Once all of the above processes have taken place your insurance company will propose a settlement figure to you.

Their engineer will have referenced the trade publications to value the vehicle, adjusting these figures to take into account the age, condition and mileage of the vehicle, and his knowledge of the current car market. The final total that he arrives at forms the basis of the settlement value given to you. Any policy excess will have to be deducted along with any outstanding finance.

Your insurance company should make it very clear precisely how much you will get and detail any adjustments to you. If you pay your car insurance by Direct Debit, the chances are that any remaining premium will also be deducted from the settlement cheque.

6) Once you have accepted the offer (some insurers might require your signature to a document called a 'form of discharge') you will be sent a cheque.

7) Your insurance company then own the remains of your car and, subject to legal limitations and those ABI codes, can do what they want with it. This will undoubtedly mean they will sell the salvage.

Article Source: http://www.uberarticles.com/articles

This article was written by Terry Cod. He has many years of experience working as a claims adjuster with a number of UK motor insurance companies. His website www.instant-online-insurance.co.uk offers Tesco motor insurance online with online quotes and secure online payment.

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