Insurance firm destroys car without consent

An insurance firm reportedly destroyed a customer’s car without his consent after it was damaged in an accident, the car was a gifted to the man by his late wife, the Mirror reports.

The 1996 Saab 900 was badly damaged in an accident in December and the customer, Greg, advised the insurance company the car had great sentimental value and that he wanted it back so he could have it repaired.

To his horror, he found the insurance firm had decided the motor was a total loss and sold it on for salvage without consulting him.

They offered Greg £2,150, representing what it said was the car’s pre-accident market value. It was suggested that the £2,100 figure that was offered to the insured for the Saab was far too low.

Additional information that Greg provided to his insurance company made it clear he had converted the car so that it could run on liquid petroleum gas. This work had cost him £2,100 and wasn’t taken into account when the company was carrying out its valuation.

The vehicle had been recorded as a Category C write off under the Code of Practice for the disposal of motor vehicle salvage. Although it was uneconomical for the insurer to repair the classic Saab, it could have been repaired and put back on the road.

As the insured was still the owner of the car at the time the firm disposed of it, he should have been consulted before any decision was made in regards to his vehicle.

Greg, whose wife died two years ago, is now considering taking his complaint to the Financial Ombudsman.