You can challenge the valuation by asking for a written breakdown, collecting evidence of your car’s condition and market value, and requesting a formal review. Here’s what to do if you disagree with an insurer’s post-accident vehicle valuation, what evidence can help, and what options you have if you still cannot reach an agreement.
Key Takeaways
If you think the car insurance value you have been offered is too low, you can challenge it by submitting evidence to support a higher valuation. If the insurer still refuses to increase the valuation, you can make a formal complaint and, if it is not resolved within eight weeks, take your case to the Financial Ombudsman Service.
What does an insurer's vehicle valuation mean?
An insurer’s vehicle valuation is an estimate of how much a vehicle is worth financially, which is used to help decide a settlement after car accident claims.
What you originally paid for your vehicle may be different from its market value. Market value usually means what it would have cost to buy a similar car, in a similar condition, shortly before the accident.
Market value considers factors such as mileage, depreciation, condition, and used car prices for the specific make and model of your car right before the accident [1].
Some insurers also use another method called agreed value, where a fixed car valuation for insurance is included in your policy when you start or renew it. You may also see this topic described online as vehicle valuation insurance, car insurance value of a car, or even pre accident value car, but the key point is the same: the settlement should reflect a fair pre-accident value, based on evidence.
How do insurers calculate the value of a written-off vehicle?
Insurers will usually look at the pre-accident market value of a car when deciding whether it should be written off.
The amount of damage and how realistic it is to repair it will be considered. This can include the type of damage, the vehicle’s roadworthiness and whether any parts need to be replaced [2].
If the car can be repaired, an estimate of the repair costs will be used to decide whether repairing it makes sense financially, factoring in costs such as hiring a replacement car and vehicle storage too.
If the car is beyond feasible repair, or the repair costs are more than its market value, it is likely to be written off.
Why might you disagree with the insurer's valuation?
Some insurers may offer a settlement price that is lower than the market value for a written-off vehicle. The Financial Conduct Authority has said it has seen examples of firms offering lower initial settlements and only increasing them when customers complain [3].
You may disagree with the valuation offered if your vehicle was in better condition than your insurer has assumed, with recent upgrades such as new parts, tyres or significant maintenance.
Another reason could be that your car had covered fewer miles than the trade guide data used by your insurer suggested.
Some insurers may also use older trade values or market trends instead of looking closely at what it currently costs to buy a similar replacement vehicle.
What evidence can you provide to challenge a valuation?
You can present several types of evidence to challenge an insurer’s vehicle valuation.
This includes listings for comparable local vehicles for sale, with the same or similar make, year, trim and mileage. However, advertised prices should be treated as supporting evidence, rather than automatic proof of a vehicle’s market value.
Other useful evidence can include a full service history, MOT history, dated receipts for recent repairs and proof of value-adding dealer or factory upgrades, such as an upgraded sound system or heated seats. Clear, pre-accident photos showing your vehicle’s condition can help too.
In some cases, it may also be useful to hire an independent vehicle valuer or motor engineer to carry out a separate assessment [4].
How to raise a valuation dispute with your insurer
You can ask your insurer for a full written valuation breakdown to raise an insurance dispute after an accident. This should usually include details of the engineer’s report or valuation guide used, as well as how the market value was reached. It can also make it easier to check for errors.
This information can help you submit relevant evidence along with a counter-offer that reflects the cost of a similar replacement model, then request a formal review of the valuation. This is often the starting point for an insurance dispute accident complaint, especially where the write-off valuation affects the rest of the claim.
What happens if you cannot reach an agreement?
The insurer will review the evidence provided as part of your car insurance claims process and decide whether to change the vehicle valuation.
If they stick to the initial offer, you can lodge a formal complaint with their complaints department, clearly explaining why you think their offer is too low and what would be an acceptable settlement to you.
Your insurer has up to eight weeks to look into your complaint and give you a final response letter [5].
When can you complain to the Financial Ombudsman Service?
If your insurer has not resolved your complaint within eight weeks, or if you are still unhappy with the outcome, you can take your case to the Financial Ombudsman Service (FOS).
The FOS may ask for more information such as expert or independent engineer reports, vehicle history, modification details, pre-existing damage evidence and copies of previous valuations.
If it decides that the insurer’s valuation was unfair, the FOS can tell the insurer to increase it and add interest. It may also take into account the distress and inconvenience you have faced when deciding what is fair. [5]
How Claimsline supports eligible drivers after a non-fault accident
As an accident management company, Claimsline can support eligible drivers with several services after a non-fault accident, depending on the circumstances, liability and eligibility.
Where available and appropriate, this may include help with a temporary replacement vehicle, transport to approved repair centres, vehicle collection and repair management. This depends on your individual case and the services available at the time.
In some cases, the costs of accident management services may be pursued from the at-fault insurer where liability is accepted or established. This means eligible clients may not have to pay a policy excess for certain Claimsline services, but this is not guaranteed and depends on the circumstances.
Claimsline can also explain your options and, where eligible, arrange support through working partners such as a recovery company, repairer or hire company. Where liability is accepted or established, the hire company or repairer seeks the charges from the at-fault insurer. You may still need to notify your own insurer, depending on your policy terms.
Claimsline is authorised and regulated by the Financial Conduct Authority in respect of regulated claims management activities (FRN 831196).
FAQs
Can I challenge my insurer’s vehicle valuation?
Yes, you can challenge your insurer’s vehicle valuation for a written-off vehicle if you think it is too low, the insurer has made an error or significant factors such as recent repairs were overlooked.
What evidence can I present to dispute a car insurance valuation?
You can present evidence such as listings for comparable local vehicles for sale, a full service history, dated receipts for recent repairs and upgrades, and clear pre-accident photos of the vehicle.
What if my insurer refuses to change its valuation?
If your insurer refuses to change its valuation after you have submitted more evidence, you can make a formal complaint to them. If this is not resolved within eight weeks, you can take your case to the Financial Ombudsman Service.
Can I keep my written-off vehicle?
In some cases, depending on the type and extent of the damage, you may be able to keep your written-off vehicle. This is often called retaining the salvage. If so, your insurer will usually deduct the salvage value from your total settlement.
Can I use comparable vehicle listings to challenge an insurer’s valuation?
Yes, comparable vehicle listings and advertisements can help you challenge your insurer’s initial valuation, along with other evidence. However, advertised vehicle prices are supporting evidence rather than automatic proof of a vehicle’s market value.
What will the Financial Ombudsman Service do?
The FOS will review your car insurance claim and the evidence provided by both you and your insurer, including repair estimates, vehicle history and independent expert reports. If the insurer’s valuation is found to be too low, the FOS can ask the insurer to increase it and add interest.
Final Word
You do not have to accept the first insurance vehicle valuation you are offered without understanding how it was calculated. Start by asking for the valuation breakdown, then compare it with the evidence you have.
If you still feel the settlement is too low, you can submit further evidence and use the complaints process if needed. Keep copies of everything you send, because the details may matter later.
Sources
- Market value considers factors such as mileage, depreciation, condition, and used car prices for the specific make and model of your car right before the accident - https://totallossgap.co.uk/what-is-market-value-in-car-insurance/1107
- The amount of damage and how realistic it is to repair it will be considered. This can include the type of damage, the vehicle’s roadworthiness and whether any parts need to be replaced - https://www.activate-group.com/news-insights/how-insurers-calculate-write-off/
- The Financial Conduct Authority has said it has seen examples of firms offering lower initial settlements and only increasing them when customers complain - https://www.fca.org.uk/publications/multi-firm-reviews/findings-multi-firm-review-insurers-valuation-vehicles
- In some cases, it may also be useful to hire an independent vehicle valuer or motor engineer to carry out a separate assessment - https://www.themotorombudsman.org/consumers/independent-vehicle-reports/
- Your insurer has up to eight weeks to look into your complaint and give you a final response letter - https://www.financial-ombudsman.org.uk/consumers/complaints-can-help/insurance/motor-insurance/vehicle-valuations-write-offs
