Should State insurance offer 'market value' payouts on a set amount policy?
My parents car was recently involved in an accident where their car received significant damage after a truck hit the car. No one was hurt but we got the details, went to the police and got the stuff rolling.
The car is sitting in my driveway, not safe for road use.
Anyway, the insurance policy was insured for a set value rather than market value. The assessor for state insurance (IAG?) has basically offered approximately $5600 for repairs or replacement. This is below the set amount that was insuranced and the assessor only viewing the exterior of the car and not assessing potential damage to the car. The understanding is that anything above ~$5600 would be out of pocket.
When we contacted the assessor for further comment, he advised that this was because the car was only worth a certain amount, a market value and that we are lucky that we got offered that amount. That would be ok if it wasn't insured for a set value.
Clearly state insurance can't have their cake and eat it too? To me it sounds like a scam.
Whats your thoughts?
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