Replacement car or market value

[notahappyman]

Very simply my car was written off by my insurers because the cost to repair was too high. The policy states that if less than a year old and I was the only owner then they would replace with a new car of same make and model, however in my case the car is not now available so they will only offer market value of a car one year old.

I am now going to lose about about 4K if I accept their offer, if I take it to the Ombudsman what hope do I have?

 

Notahappyman

[unclebulgaria67]

In have dealt with claims in this situation. It is a bit of a cop out by Insurers. Normally if you argue about this, they will up the claims settlement and meet you half way i.e £2k more than current offer.

 

So my advice is to make a formal complaint in writing asking for a final decision, as you wish to let the FOS decide on this. They may come back with a better offer, if they think the FOS would rule in your favour. They hate having the FOS rule against them, apart from the £500 case fee they would have to pay.

[notahappyman]

Thanks for the comments Uncle Womble!

Currently waiting for a reply from the insurer's customer service manager who has already told me I can write to the FOS if I do not accept his final offer.

We shall see what he offers and then decide.

[notahappyman]

Update on the situation.

Insurer will not up his final offer, so have spoken to FoS and they are sending forms to fill in.

Oddly enough insurer will pay out what they are offering now even though I am taking them to FOS, this is without prejudicing any future decision by fos