Yamaha XJ6 - No fault write off

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Fri 9 Mar 2012 13:25
Yamaha XJ6 - No fault write off - zano

Hi,

I was involved in car accident, and it was not my fault.

The motorbike is a writeoff, as the cost of repair almost match the market value.

The other insurance does not want to pay the market value, but instead only 70% of it, and I will keep the motorbike. As far as I understood, in general the insurance has two options:

1) cover the whole cost of the repair

2) take the bike and give me its market value.

Anything different from this has to be agreed by both party.

Am I right in asking the whole market value?

About the market value, the inspector stated a "buying price" (i.e., the money that I will get if I sell the bike) and a "selling price" (i.e., the money that I have to spend to buy a similar bike). He stated that the market price is something in the middle. I think the market price is the "selling price". Am I right?

Thanks

Luca

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Fri 9 Mar 2012 16:16
Yamaha XJ6 - No fault write off - bonzo dog

Hi Luca. sorry to hear of your accident; hope you're OK?

Am I right in asking the whole market value?

Yes; assuming the insurance company get to keep the bike. If you want to retain the bike effectively you are buying it back off the insurance co & so the cash settlement to you will be less than market value

About the market value, the inspector stated a "buying price" (i.e., the money that I will get if I sell the bike) and a "selling price" (i.e., the money that I have to spend to buy a similar bike). He stated that the market price is something in the middle. I think the market price is the "selling price.

Ignore what he said. A total loss payment is supposed to put you in the same situation (as far as possible) you were in immediatly prior to the accident.

So if for example your XJ6 was 3 years old with 12,000 miles on the clock, one owner with FSH then the insurance company should be paying you what it would cost to purchase a one owner, 3 year old XJ6 with 12,000 miles & FSH.

Check out the ads on Bike Trader but you need to allow for a discount off the advertised prices.

Get a handful, send them to the insurance company & tell them that they either settle for this ammount or you will speak to the insurance ombudsman

Good luck

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Fri 9 Mar 2012 18:25
Yamaha XJ6 - No fault write off - NARU

Use this as your guide - its what all insurers should be following.

In most cases, we assess the market value as the retail price which the policyholder would have had to pay for a comparable vehicle at a reputable dealer, immediately before the date of the damage/theft.

  • This may be lower than the price at which the vehicle is advertised, as the dealer may have built in a margin for negotiation.
  • It is likely to be higher than the price payable in a private sale or at an auction, and higher than the trade value (which is the price a dealer would pay before adding its mark-up).

Lots more information here:

www.financial-ombudsman.org.uk/publications/techni...l

Edited by Marlot on 09/03/2012 at 18:31

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