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How to Challenge an Undervalued Insurance Write-Off Settlement

Car crash leading to vehicle write-off

Car crash dangerous accident on the road. SUV car crashing beside another one on the road.

If your insurer has written off your car and offered a payout that seems too low, you have the right to challenge it. Many policyholders don’t realise that they can dispute their insurer’s valuation for free.

This guide explains how to challenge an undervalued vehicle settlement, step by step.

Why Do Insurers Undervalue Vehicle Write-Offs?

Insurers use trade guides and market data to determine a vehicle’s pre-accident value, but their calculations may not always reflect the true market price. Some common reasons why insurers might undervalue your vehicle include:

Can You Challenge the Valuation from your vehicle write-off?

Yes. You can dispute the insurer’s valuation if you feel like you were left out of pocket. Below, we run through 5 simple steps for making a write-off claim yourself.

Step 1: Request a Data Subject Access Request (DSAR)

A Data Subject Access Request (DSAR) allows you to see how the insurer arrived at their valuation. This can help you identify any flaws or missing data in their assessment.

How to Request a DSAR:

Step 2: Gather Independent Valuation Evidence

To challenge the insurer’s offer effectively, you need independent valuations to support your case.

Where to Get Valuations:

Some of these services require a fee, but the reports can be critical in proving your vehicle’s true value.

Step 3: Write to Your Insurer

Once you have independent valuations, you need to send a formal challenge letter to your insurer. Your letter should include:

Step 4: Insurer’s Response

Your insurer may:

If the insurer’s revised offer is still too low, you can escalate the complaint further.

Step 5: Escalate to the Financial Ombudsman Service (FOS)

If the insurer refuses to pay a fair amount, you can take your complaint to the Financial Ombudsman Service (FOS). This is a free service that resolves disputes between consumers and financial firms.

How to Complain to the FOS:

The FOS process can take several months, but if they decide in your favour, your insurer will be required to pay the correct amount.

What Does the FCA Say About Fair Value?

The Financial Conduct Authority (FCA) requires insurers to offer fair and transparent settlements. In December 2022, the FCA warned that some insurers were undervaluing claims and reminded them of their obligations under fair value rules.

How Allegiant Can Help (If You Prefer Professional Assistance)

If you’d rather have experts handle the process, Allegiant offers a no win, no fee service to challenge undervalued settlements.

Allegiant’s Process:

  1. Requests all valuation data from the insurer.
  2. Sources independent trade guide valuations.
  3. Drafts a strong challenge letter based on FOS decisions.
  4. Handles negotiations with the insurer.
  5. Escalates the case to the FOS if necessary.

You only pay a fee if we secure a higher settlement for you. However, you can still go through the entire process yourself for free if you prefer.

Conclusion: Take Action If You’ve Been Undervalued

For those who want expert help, Allegiant can handle the process on a no-win, no-fee basis. Our fees range from 18%-36% including VAT. See our fees page for further details.

Useful Resources:

By taking these steps, you can ensure you receive the correct settlement for your written-off vehicle.

 

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