My insurer won't provide enough money for full repairs on my damaged car - what do I do?

I have a heavily modified 2012 Volkswagen Golf with all modifications declared to my insurer. In February 2018 I had an accident, which was my fault. It left a nice dent in the nearside wing and cracked my front bumper in a few places. I purchased a new bumper and wing, then decided to go through my insurance instead of fixing it privately. After receiving a £1800 quote to repair the vehicle at my bodyshop, my insurance has decided to write me a cheque to get it fixed rather than having the bill sent to them. The problem is that the amount they are offering is £600 short of the quote (this is after I add my excess to the offered sum of money). Therefore, they aren't actually offering me enough cash to fix the vehicle. What do I do? It's been two months since the incident and I'm becoming very frustrated. My car is my pride and joy as well as my hobby. I was told they won't cover the labour cost for the repair, but surely the whole point of insurance is for them to fix the vehicle with me only paying the excess. What do I pay all that money for if they wont even fix the vehicle? Any advice will be greatly appreciated.

Asked on 24 April 2018 by Malcolm Butler

Answered by Tim Kelly
Raise a complaint and tell them that they're in breach of contract for failing to indemnify you. The Ombudsman will advise that the insurer has obliged the contract by providing cash settlement rather than repairing your car. Your complaint is that you would have been more than happy for their repairer to repair it, it is them who are refusing to repair your vehicle. You do not have access to the preferential commercial contracts your insurer can obtain and, as such, have significant short fall that does not provide indemnity. Raise a complaint with the Financial Ombudsman Service as well as the insurer.
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