What is a settlement offer for a car write-off?

What is a settlement offer for a car write-off?

What is a settlement offer for a car write-off?

If you've ever had a motor insurance claim, or are thinking of doing so, then chances are you've been offered a settlement offer for your car write-off - a set amount of money that they're willing to put towards the repair and/or recovery costs of your vehicle. In others it might be just an approximation, with their quote taking into account your age, lifestyle, health, and how the vehicle is maintained.

Before you agree to settle with any motor insurer, it's important that you know what's entailed. And that's what this article aims to do - to help you have more information about these settlement offers, to help you make your decision.

Let's start by defining what the word 'settlement' means in relation to motor insurance. What is a settlement? To answer this, first, we'll have to define the key words 'claim' and 'loss'. A claim is something that your car insurer believes you might make to them under the motor insurance policies you have with them. This includes:

A claim if the car was uninsured or didn't have third party cover. A claim if the car causes bodily injury to other people, not just damages to other vehicles. The claim has then progressed to where it might enter the 'litigation' stage. Once an insurer has 'agreed' a settlement to your claim (which would be when they make a 'settlement offer'), then there is an obligation to perform certain actions. Once they complete these actions, you'll be considered as being 'in settlement' - that is, you're considered as no longer having a claim under their policy with you.

Once you are in 'settlement' it's up to you to decide whether you want to continue with the agreement, or whether you want to end the relationship. Is it safe to continue with a settlement offer? No, it's not. If you continue with a settlement, the reasons behind doing so need to be considered very carefully.

How much will my insurance pay if my car is written off?

What happens if you make a claim on your car insurance? There are two main types of car insurance: third party and comprehensive. A third party policy covers you in the event that your car is damaged or stolen. It's a bit like your own form of extended travel insurance. It's not comprehensive, as it doesn't cover physical damage to your own vehicle or theft damage to your personal belongings. If you have a comprehensive policy you may be covered for theft of your vehicle, but only if you take certain precautions.

Insurers will pay the replacement value of your car unless there is evidence it has been written off (a written-off vehicle is one that is unrepairable). They can't usually claim the actual cash value of the vehicle, but you may get some money back from an insurer. Don't sign anything without reading it thoroughly. There are very often fine print conditions, which state that they only pay limited amounts in particular circumstances. If something unusual happens, such as if the damage was self inflicted or the car is totally wrecked, the insurance company might not cover your loss.

What's included and what's excluded in my car insurance? Third party car insurance generally includes everything except the actual cash value of your car, which means the damage to the structure and mechanical components of the vehicle. It won't cover anything that's under warranty. Your car insurance probably won't include costs associated with vehicle rental, travel to work, or travel while a vehicle is being repaired. Comprehensive insurance typically covers things like this, but it's worth checking the small print in your policy to make sure it does.

What are breakdown cover options? Your insurer will offer breakdown cover. This means that if you have to pull over while driving because the engine is breaking, you can call an emergency service and they will usually come and tow you home for a fee.

Some insurances will cover some breakdowns at a discount rate. If you take your car to a garage and the repair takes longer than expected, your insurer may reduce the cost. You'll also be charged less if you take your car to a garage that doesn't belong to the same insurer as your policy, or a private one at all.

Your cover may be discounted by offering flexible payments or paying more for the insurance premium every six months rather than on a one-off payment basis.

How long does car insurance take to pay out UK?

Car insurance will take you longer to pay out than the best value policies from the comparison websites and so here's what you need to know. What does the car insurance mean? Every policy covers you for accidents which affect your vehicle. That's it. The term is a bit misleading and you should be aware of the different types of cover.

Under third party vehicle insurance, the insurance company will cover you for any damage that you or someone else causes to other vehicles or anything on the road. So if a drunk driver knocks over a lamp post, you or someone else pays for it.

Legal liability insurance covers you if someone else damages your vehicle. That's as simple as it gets.

You might need to look after your vehicle for three weeks to six months, depending on the damage. A common example is that when your windscreen is smashed, you have to pay for the extra care costs. If a drunk driver knocks you over, they won't pay.

There are two types of cover: legal liability and cover excess. Legal liability is very straightforward - if a third party damages your car, they will be responsible for the repairs. You're likely to have to spend up to 500 repairing your car - after that, you are free to keep driving until the damage has been fixed. With legal liability, the amount you have to pay will depend on the extent of the damage. Your insurer will usually take up to 1500 worth of your car as a 'guarantee', that means you can keep driving if the damage is around that much.

Legal protection insurance is an idea to give you the maximum protection and help you in the unfortunate event of a car accident. Legal protection insurance will typically cover the car from being damaged by another vehicle (third-party damage) or from theft. In the event of theft, the law states that your car must be returned to you and you're then expected to claim the cost of returning the car (unless your car is valued at more than 2000). If a thief gets away with your car, they'll never get the chance to return your car.

You'll probably be asked to pay a cash sum towards the cost of repairs and sometimes legal protection might cover them. But the total outlay for a car isn't going to be anywhere near that 1500 figure.

---

---