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WA Letter of Demand - WIll Insurance Company Negotiate Settlement Costs?

Discussion in 'Insurance Law Forum' started by Jrodau, 2 October 2016.

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  1. Jrodau

    Jrodau Member

    2 October 2016
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    I was involved in a car accident, where I was at fault, and I was driving a vehicle that had no car insurance. The other people had car insurance and have since been paid out due to their car being deemed a "Statutory write-off".

    We've received a letter of demand from the insurance company for payment of just over 26K. However, after speaking to the person whose car I damaged, they stated they purchased the car for 26K and insured it on agreed value for 26K with the insurance company.

    The insurance company received $3,500 for the salvaged vehicle after it was sold at auction.

    A few questions to help me going forward;

    - Why is the insurance company chasing me for money exceeding 26K? Surely they would deduce the salvaged price from the payout to the other party? Therefore 26k - 3500?

    - Will insurance companies negotiate the settlement costs? ie, if we offered to pay a lump sum figure below what is being initially asked for in the letter of demand, is this something that takes place prior to looking at payment plans and going to court?

    Can anyone also recommend a lawyer in Perth that has experience with this in the past and could assist?

    Any guidance and help on this matter is appreciated.


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