Motor Car insurance claim query re VAT and non-payment for exhaust.

D

Dodi

Registered User
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Had accident. Exhaust ripped off. Garage estimated 600 euro. Approved by assessor. Car insurance company will not pay VAt as they are in Northern Ireland. Also they have deducted 20% for exhaust as they say it will add value to car They are only paying 325 euro.
Have they a right to do this
 
the car insurance company is based in Northern Ireland or the garage is?
 
Hi peteb
It's AIG I think they are based in the North. garage in south.
We have asked them to put it in writing and are now waiting for reply from them.

They just said we don't pay the Vat. garage has never heard of this before
 
Dodi said:
They just said we don't pay the Vat. garage has never heard of this before
Click to expand...
Is it by any chance a company car?

We had a bump a couple of years ago and, as the car was registered to our partnership and we are registered for VAT, the insurance company paid the claim minus the VAT, which we reclaimed ourselves.
 
Thanks delgirl No. Private car. It's over 20 years since we had a claim...
Can't understand it.
 
AIG have registered offices in Ireland.
AIG House
Merrion Road
Dublin 4
Ireland
Tel: +353 1 208 1400

I cannot understand why they are withholding the VAT if you are not registered for VAT. Get your correspondence together and ring them at above number
 
Hi Dermot.
When we received cheque this morning we phoned them & queried amount. Not sure what number we call but it was on their letter.
They said they did not pay vat.
We have asked them to put it in writing.
I cannot understand either that they took 20% off either saying that it would add value to our car. Our car is in pristine condition otherwise. It's 2007 Prius. They took off 100 for excess which is fair enough.

Thanks for number. Will phone head office on receipt of letter
 
AIG's claims are handled by a company called MIS which is based in Belfast. However as pointed out their office is based in Dublin. Also you took your policy out in Ireland for euros so that would never have a bearing on the matter.
 
Will get to the bottom of it.

Was just wondering if anyone else was refused VAT or saying new exhaust would add value to car? You cannot drive car without exhaust...so this is crazy to me
Is this a new thing with Insurance Companies trying to not pay?

Will post when I hear something
 
Insurance companies arent registered for VAT so maybe someone on the other end was getting confused.

I've seen it before where an insurance company refused to provide brand new door for a car because there was general wear and tear and they were considering it as betterment if they were to provide a brand new door. So basically they feel that they are putting you in a better position if they give you a brand new exhaust.

You are going to need to look at your policy wording and see what it says about that.
 
When settling a claim I was asked if I was registered for vat- when I said no, that it was a private car not a company vehicle- then they paid out the full claim. I think the insurance co made an error here.
 
Hi.

Getting somewhere!
They have agreed to pay out 89 euro (the 20% that adds value to our car for new exhaust saying sorry, that things were not explained to us before hand

They sent out assessors report also. reading it I noticed that he has it inclusive of VAT less the 89 euro and 100 euro excess. So I think they will be getting a phone call on Monday!!! for VAT

It pays to query!
 
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