Insurance Section

Insurance Co. Trying To Pay Less Than Your Car's Value? - Then Sue 'Em It's Easy & Effective

January 2006

Many people don't know just how effective the small claims court can be when dealing with either money you're owed or what you feel is breach of contract. The author himself has sued BT very effectively for a few hundred pounds over problems with a broadband connection. Well, the case never actually got to court rather the summons focused BT's mind!

The key to it all is that it usually costs the defendant more to defend the case than to pay out.

Car Insurance Companies Love To Pay Out Less Than The Car Is Worth

This is an all too familiar practice by the car insurance companies -

• Your car is written off or stolen (doesn't matter if it's your fault)
• The insurance company agrees to pay out the value of the car in cash
• However, they low ball the value perhaps saying it's only worth £5,000 when you know for a fact £6,000 is more like it
• Most punters will just accept the £5,000 with tails between their legs
• But if you're not happy then just collect all the data you can about the true worth of your car, do this by car adverts and the price in car pricing guides such as Parker's
• Then write to the insurance company with all this evidence stating it has grossly undervalued the true worth of the car and if it fails to honour the contract of insurance within 14 days you will issue proceedings in the county court
• Issuing proceedings sounds like a complex task but it's not and it can be done online where there is also a lot of information to help you, alternatively you could always get some free advice from the local Citizens Advice Bureau

Summary

Don't let big business trample all over you, fight back with real evidence and real threats. The insurance companies know what they're doing and understand that most of their clients will just accept whatever they do. But as we said in the beginning it usually costs them more to defend a court action than to pay out so strategies such as this (as long as you have supporting facts) work very well.

Good luck!

See Also

• Citizens Advice Bureau
• Small Claims FAQ