AA Insurance and their agreed value policy

[qube 3568]

So long story short my father was rear ended last sunday and our subaru wagon was severely damaged.

He has third party insurance with AA with an agreed value of $3500.

I just got off the phone with them and they tried to tell me that they have determined it is not repairable and they need an assessor to determine a market value.

So I asked them why? because we have an agreed value of the car. They tried to argue but I just said no and the person in charge said they will look into it...

This is basically our first major accident where we needed a pay out for the value of the car rather than a fix.

As far as I know, we are completely entitled to the full $3500 and shouldnt take a dollar less, am I correct?

Thanks

[E30 325i Rag-Top 2914]

I had a claim with AA for a car on agree value, and they paid out, no questions asked, full agreed value. The amount you agree has an affect on the size of your premium, so they shouldn't be querying it at this stage.

The only thing you might have to argue over is any excess on the policy, which AFAIK your insurer, the AA, should claim from the other person's insurance if they are at fault as it sounds.

Stick to your guns, don't let them fob you off.

[M5V8 337]

check your contract. if it states agreed value. If they offer anything less report it to the insurance ombudsmen. You will win.

[westy 614]

Third party with agreed value? Sounds a bit odd?

[Haitoman 110]

If you only have normal third party insurance you will not get a single bean out of an insurance company unless the other vehicle was insured AND the damage was their fault. I suspect you have third party fire and theft car insurance which offers agreed value protection. It is a no questions asked policy and you are entitled to the full $3500.00. Point out they advertised no bickering and no buts...you will get the full amount.

Edited March 26, 2015 by Haitoman

[qube 3568]

Other vehicle is completely at fault and has insurance with AA insurance as well.

I shouldnt have to pay any excess as I am not the one making the claim. The person who's at fault has lodged the claim to AA himself.

AA insurance has third party with agreed value. Checked contract and their website. Clearly stated.

[Renkin 0]

Third Party only carries no agreed value, it sounds like you have Third Party Fire and Theft, in which the agreed value would only be applicable in the event of a fire or a theft.

From what you've mention Kyu, the payout by AA Insurance would only be at market value.

[qube 3568]

https://www.aainsurance.co.nz/AAI_Internet/media/media/PDFs/Third-Party_Policy_AAI.pdf

[westy 614]

Other vehicle is completely at fault and has insurance with AA insurance as well.

I shouldnt have to pay any excess as I am not the one making the claim. The person who's at fault has lodged the claim to AA himself.

AA insurance has third party with agreed value. Checked contract and their website. Clearly stated.

Well if that's the case I suspect you're being covered by the other parties insurance and not your own. In which case the agreed value probably doesn't apply.

[westy 614]

Beaten by Dave ha

[qube 3568]

hmm makes sense. but then why do we even have a value for the car? we dont have third party + fire and theft (which would then make sense)

we just have third party insurance

and if i did have comprehensive cover, that means in order for me to get the 'agreed value' then i must make my own claim which means pay my excess fee (which might make it not so worth while, in some cases depending on the value/cost)

[Navin 180]

You wouldn't be paying the excess if it wasn't your fault. With comprehensive, your insurer chases the other party for the full amount including excess

[westy 614]

Well, agreed value is market value anyway so theoretically thats about where they should be.

[qube 3568]

Got the full 3500.

[qube 3568]

I think it was because the other person was with AA.

Anyways result!

[pghendry 0]

^^ And the agreed value you have is for when a "3rd party" (you and your insurer being the first two) wrecks your car and they can't pay (e.g. doesn't have insurance).

That's not how 3rd party normally works (in the UK at least). 3rd party covers any damage you do to someone else's car in an accident if it was your fault on no-blame. It doesn't cover anything towards the cost of your own car. As you point out, "3rd party" means the other guy and that is who it covers.

[westy 614]

Reasonably common Dave. Many third party policies have a payout condition. Which kinda means they're not really 3rd party I guess....