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how do car insurance companies work out what you car is worth?
I was woke up by a lorry this morning thought nothing off it but when I opened the curtains some time later I seen it was parked out side my house at a funny angle, when I went out side I seen it had crashed/slid into my car.

Anyway I have been advised it is repairable/touched up but if done via the insurance it will be classed as an economical write off due to a panel that needs replacing.

Anyway how would their insurance company work out what my car is worth if it was written off?
asked in insurance, cars, write off



Russel.West answers:

most companies use Glasses guide to value a car based on age, use, wear and tear and how much a car of comparable age would cost.


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blacksmith81 answers:

Like almost everything else involved with insurance, they use a mathematical model, which is partly based on the cost of the vehicle when new. This is then reduced by depreciation in value due to age, factored into this figure is also inflation, this reduces the present value even further.


Supplement from 12/11/2008 01:31am:

Although, if your car is 'written off', even if it's repairable. You may need an Automotive Engineer's report, stating that it's roadworthy, before it can be used on the road again, not just an MOT.


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wumpus answers:

It's usually based on market value, as established by Parker's or Glass's guides.

If you don't think the figure you offer is fair (and you can reject their offer) then they may send around an insurance assessor, who will try to establish an acceptable value.
If the car is in very good condition, he might advise that it was worth more than their initial offer.

The first offer they make is usually quite low, so make sure you account for any additional costs which may be involved; stereo, shopping in the boot, costs of finding as well as buying a replacement, plus any legal expenses you incur.


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