Knocked twice: why you will not get the value of the car from the insurance

Have you had your car stolen or were you involved in an accident?

You are expected to receive money from the insurance, that's for sure.

Does it reflect its true value?

Here the answer is really unclear

Keenan Cohen

24/01/2022

Monday, 24 January 2022, 09:35 Updated: 12:28

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The used car market is dizzying, and it has a real impact on your chances of getting what you really deserve from the insurance.

If you have been around the used car market in recent months, even if it is not you who sold the car but the brother, neighbor, friend from the reserve or work - you can not ignore the simple fact that as far as used prices - the market is boiling.

The sought-after models of Kia, Skoda, Toyota and others change hands in the high amounts of thousands of shekels, sometimes even 10,000 shekels above the official list price in cases of tools like the Kia Carnival for example and is really not the only one.

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This situation in which cars are traded at higher prices than the "official" ones stated in the price list is due to a variety of reasons.

Central to them is the rising cost of new cars and their supply difficulties, those that will accompany us for many months to come.

As well as the general demand for cars due to the alarming state of public transport and fears of traveling in it during the Corona period.

But, as far as the payment of the insurance benefits to which you are entitled in the event of theft or total damage to the car - you will find yourself with much less money than its real value in the market - is that outside the "official" price list.

Your vehicle is worth more (Photo: Keinan Cohen)

How did we get into this situation?

A private and commercial car insurance policy up to 3.5 tons is an insurance contract whose terms are dictated and determined by the Supervisor of Insurance, which stipulates, among other things, that in the event of theft or declaration of the vehicle as total loss (Total - Loss), the insurer will pay the insured the full value of the vehicle. Or will be replaced by a vehicle of a similar type and quality. The policy also states that the price list, which serves as a basis for determining the market value of the vehicle when paying insurance benefits for complete loss of the vehicle or its theft, is a "used and new car price list", as published by Yitzhak Levy, shortly before the insurance event. The Supervisor relies on one price list, private and why does not refer the insurance companies to the official price list of the state? Good question.

That is, controls what is called an "insurance case" - the compensation the insured will receive will dictate the price list. In the market.It follows that the insured whose vehicle is completely lost or stolen may lose quite a bit of money due to this linkage.

How much will you get for your vehicle?

Probably not its true value (Photo: Consumer Protection and Fair Trade Spokeswoman)

there is a solution?

"Third-party lawsuit can take months" Adv. Assaf Warsaw (Photo: Yaniv Schmidt)

So there is a solution to this problematic situation and it is even a solution that bypasses the buyer in the problematic insurance provisions and in a clever way, but there is a catch.

"In a case where a vehicle is totally damaged due to an accident caused by the negligence of another vehicle driver, the injured party has two options," explains Adv. Assaf Warsaw, co-chair of the Torts Forum at the Bar Association. According to Levy Yitzhak's price list, the second option is to file a tort claim against a third party based on an assessment of the vehicle's real value on the day of the accident. Of the vehicle, the previous owner's number and the odometer (mileage - K.C.) ".

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Because contrary to the insurance provisions, the claim is filed under the Torts Ordinance, where it is determined that the purpose of the compensation to be terminated is to restore the injured party (in this case the vehicle owner) to his condition before the damage occurred. "Because it is an alternative that is definitely worth considering in such situations," says Advocate Warsaw.

" In practice, there are very few cases in which needs choose this channel, most likely due to a lack of awareness of its existence. I call on the public of car owners to exercise their right to compensation that reflects the real damage done to them. "

However, unlike appraisers whose interest is clear in this case, it is not always worth running to the claims route, warns Warsaw: "The period of compensation must be taken into account.

A standard car policy stipulates that the insurance benefits will be paid to the insured for a period of no more than about a month, while a third-party claim procedure can take months, and in the event that the case is rolled over to the court - even beyond that. "

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• Law and insurance

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