What is meant by a write off or total loss? It happens where the car repair cost is greater than the value of the vehicle, including any residual value of the damaged car.
So lets say that your vehicle has been severely damaged. This might be the result of a collision, a fire, or damage as a result of a theft. And it costs, say £5,000 to repair it. If value of your vehicle is say £5,500 and the salvage valuation of the wreck is £600 then it makes financial sense for your insurer to total loss the vehicle rather than pay to fix it.
Suppose that the salvage value is only £400. It's very likely that the insurers will still total loss the vehicle. The repair cost estimate of £5,000 is based on a visual inspection and assessment of the repairs that are needed. There could be more damage found when the repair was started. So even though it looks cheaper to repair the vehicle it would be treated as a border line total loss.
They will request to move the damaged vehicle into 'free and safe storage'. This is normally at a salvage dealer. Their reasoning isn't difficult to follow. Repair Garages have cottoned on that there is a fast buck to be made. They won't be appointed as the repairer but they will bill your insurer just for keeping your vehicle on their premises. They've been known to charge incredible daily rates that can make vehicle clamping fees seem like peanuts! Even the lowest rates are on the scale of car parking fees in Central London. Insurers pay out vast amounts of money every year for storage charges so they need to move the vehicle as fast as humanly possible.
Because a few policyholders have caused problems and cost them unnecessary money they might simply inform you that they are going to move it in 48 hours rather than requesting your go-ahead. What has happened on occasion is that the salvage teams are so fast off the mark that the salvage truck is collecting the car before you've been told that it is a total loss!. Not surprisingly this can be upsetting to some customers.
But bearing in mind the reason, please be sympathetic! The insurers aren't disposing of your vehicle, just moving it to keep costs down. You might ask why you should bother about saving money for your insurance company? The reason is very straightforward. The more they pay out on claims, the more you pay for your insurance. It is in your interest to help them save money. My advice is simple- help them. Always agree to have your vehicle moved from a vehicle repairer. If you don't, they can force you to pay the storage charges from the date of your refusal.
Occasionally when dealing with an older car, it can be a total loss yet still be perfectly safe and legal to drive. Maybe it has a low value and only some minor cosmetic damage. Often the insurance companies will allow you to keep the vehicle at home whilst the procedural cogs keep turning, provided it is not clocking up any charges.
This article was written by Terry Cod. He has many years of experience working as a claims adjuster with a number of UK insurance companies. His website
http://www.instant-online-insurance.co.uk offers
cheap motor insurance
Americas Watchdog Applauds American Interbanc for Calling Attention to Mortgage Bait and Switch Schemes Used by Some of the Largest Lenders in the U.S.