My insurance company won't give me cash in lieu - what can I do?

I was recently involved in an accident whereby the insurance company has written off my car. They have valued my car at £2285 and the repairs at £3400.
If I want to buy the same car with similar mileage in my area then I'm looking to pay £2800/£2900. My insurance company are saying they won't give me cash in lieu, even though my own mechanic can fix the car up for £2000. I don't want to salvage the car and fix it up as it will be labelled with a 'cat'. Alternatively, I don't want to buy another car as I want to fix the car up I already have as it is special to me. Surely I'm entitled to cash in lieu? Doesn't it actually work out better for the insurance company to give cash in lieu as they pay out less and aren't responsible for the repairs?

Asked on 3 July 2018 by Melissa Laurie

Answered by Tim Kelly
In your situation, your car is definitely a total loss. As such you are not entitled to a cash In lieu settlement. Had the repair cost have been less than the market value, you could have demanded it. Your better course of action and first, is to dispute the valuation, Value the car using Glass and CAP value, and make the insurer substantiate their value to you. It may well be they increase it. Alternatively if you did keep it, you would be spending as much on the vehicle as it is technically worth, the application of a "cat" on a vehicle of that age is negligible.
People always say vehicles are special to them, till you offer them more money. Personally I would think it foolish to attempt to keep it, dispute the value, obtain the best settlement and accept your car is a total loss.
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