The company, which supplies the Glassmatix vehicle repair estimating system, says this is causing increased customer turnover and rising total loss settlement costs.
“Some insurers tell us that the cost of processing a total loss claim can be as much as 10 times the cost of a typical repair claim,” says Iain Burkinshaw, business development manager at EurotaxGlass’s.
“We have found insurers can pay £300 above the true value of the vehicle, simply to avoid the greater cost and negative publicity associated with pursuing a complaint with the financial ombudsman,” he adds.
Burkinshaw believes that the problem comes from a false perception by policyholders about pre-accident valuations and has called for the introduction of a transparent and independent valuation mechanism.
EurotaxGlass’s is planning to launch a new software solution for managing total loss claims. It will generate valuations that reflect the pre-accident condition and mileage, and also consider fluctuations in prices paid for used vehicles in different parts of the UK.